Understanding Third-Party Insurance

​Are you tired of being on the other side of an insurance claim? Maybe you’ve been in a vehicle accident and experienced a stressful claim from a third party. Nonetheless, we’re here to help you understand what third-party insurance is and how beneficial it is to have a policy. Keep on reading!

What Is Third-Party Insurance?
It is a form of liability insurance, and the most common type of third-party insurance is automobile insurance. It covers claims and losses by another driver who’s not insured and is considered the third party.

There are two types of automobile third-party liability coverage; 

1. Bodily injury liability
   First is the bodily liability that insures against costs from another person’s injury. It covers lost wages due to absence, hospital bills, and medication.
2. Property damage liability
   Second is property damage liability which covers the destruction of property and payment for infrastructure loss.

Who Are The Parties Involved?
Knowing the people involved is an important part of understanding third-party insurance.

• First-party
  You, as the policyholder/insurance owner, are the first party.
• Second-party
  Your insurance agency is the second party, who’ll help you cover costs
• Third-party
  The third party is the other person who claims damages against you.

What Are Its Benefits?
All drivers must carry a minimal amount of harm to others. The vehicle you use has a lot of potential to put others in danger.  Nonetheless, accidents are unavoidable and cannot be predicted; thus, this poses a need for coverage.

Listed below are the pros of having third-party insurance:
a. It allows you to drive safely and responsibly.
Driving can be dangerous, but with insurance, you can be confident to drive. You also have to be responsible for the safety of others, not just yourself. 
b. It makes you worry and stress-free.
The claims made by the third party can be a headache. With the insurance, you don’t have to debate with the other driver over and over.
c. It helps you save money.
You don’t want to be involved in vehicular disputes because it can cost a lot of money. The coverage will help you with out-of-pocket expenses.

Conclusion
The third-party insurance will help on the road since third-party claims are difficult and demanding. Take note of the benefits you’ll reap, and you’ll realize what makes the insurance a worthy purchase.

At UG Insurance Brokerage Inc, we do our best to ensure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (718) 848-7777 or Click Here to request a free quote. Topics and coverage in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!