Third-Party Insurance
/ˈθɜrdˌpɑrti ɪnˈʃʊərəns/
Definitions
- (n.) An insurance policy that protects the insured against claims made by a third party for losses or damages caused by the insured's actions.
The driver’s third-party insurance covered the damages to the other vehicle after the accident.
- (n.) A mandatory insurance in many jurisdictions requiring vehicle owners to compensate third parties for injury or property damage.
In many countries, carrying third-party insurance is compulsory for all motorists.
Forms
- third-party insurance
Related terms
See also
Commentary
Often mandatory by law for vehicles, third-party insurance specifically covers liability to others, not the insured’s own losses.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.