What Is Third-Party Insurance on Your Auto Policy?

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It’s no secret that car insurance can get complicated. Every insurance company offers several different types of policies and a variety of coverage limits that can change based on where you live, what kind of driver you are, what you want to purchase and what the state where you live requires. One type of automobile insurance coverage that nearly every driver needs is called third-party insurance.

Third-party insurance is legally required in most states, and, like other forms of insurance, it can help protect drivers from some of the most expensive risks involved with owning and operating a car. And, again like other forms of insurance, third-party policies can differ in what they cover and how. If you need to purchase a third-party policy, or if your current auto policy already includes it and you’re interested in how it protects you, it’s wise to learn the basics of what third-party insurance is and how it works.