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3rd Party Car Insurance Coverage Explained

Third party car insurance is coverage that protects a person found at fault in a car collision against being sued by the other party. This type of coverage is also known as liability coverage, and every state requires that their drivers carry it. Those who do not purchase liability coverage or 3rd party car insurance will be subject to legal penalties and could end up in debt if they don’t have enough money to pay for damages that they cause in an accident.

Having Proof of Insurance for Police Officers

Whenever drivers are stopped by law enforcement officers, they are required to present proof that they have purchased their 3rd party car insurance for the minimum amounts that their states have set. Those who cannot offer this proof will have to face the consequences set by each particular state. For example, in the state of Delaware, those who do not have 3rd party car insurance receive a fine of at least $1,500 for the first offence. If they are convicted of this same offence within a three-year period, each conviction will result in a $3,000 fine; they will also have their driving privileges suspended for a six-month period.

It can be costly to drive without third party car insurance, but it can be even more expensive to cause an accident when drivers do not have this type of coverage. Some drivers even argue that fire and theft coverage is essential based on their experiences. Anyways, without basic liability coverage, the people who were injured in a car accident can all sue the driver found at fault for their damages. The person found at fault will be responsible for all of the medical expenses incurred by the passengers of the other vehicle as well as the driver of the other car. There may also have been pedestrians on the sidewalk or crossing the street who were hurt in the collision; these people will also be entitled to sue the driver at fault.

Should I Get 3rd Party Car Insurance Only?

Car collisions can also result in damage to property, and third party coverage will help with this, but it will not necessarily cover other damages like personal injury. For this reason, it is recommended to get more than the bare minimum. This does not just include the vehicles that are hit by the at fault driver, but also can mean city property. A vehicle that runs into a fire hydrant, for example, will be responsible for the money it costs to repair it. Vehicles have also been known to run into buildings, both residential homes as well as commercial buildings. The damages to these structures will also need to be repaired by the at fault driver.

With all the medical expenses and the property damages that can result from a car collision, third party car insurance is necessary to keep drivers out of the courtroom. The scenario to the contrary, where at fault drivers are sued and they receive multiple judgments against them, can mean that these drivers are ruined financially. They could lose everything they have in savings in order to pay all of the medical bills and property damages they have caused. Their future earnings also could be in jeopardy and their wages garnished. They may be forced to sell any assets they have to pay off their obligations. It could be a nightmare for these people.

Always Make Sure You Have Adequate Liability Coverage

It would not be worth it to avoid purchasing 3rd party car insurance only to keep from having to pay the monthly premiums. As has been stated above, it can cost drivers to be caught driving without adequate coverage, but it will cost them so much more to be caught causing an accident without third party protection. To help drivers decrease the possibility of being sued for a car collision that they cause, every state has written into law the need for every driver to purchase a liability policy. The definition of third party is the person who has been damaged by the first party, the person found to be at fault in the auto collision. The third parties are the only ones who will benefit from the liability insurance policy, not the first party.

Third Party Laws and Comparisons by State

Under a state’s minimum requirements, drivers are mandated to have bodily injury liability and property damage liability coverage. Included under bodily injury liability are two amounts; drivers must have a particular amount of money for one person who files a claim with the car insurance company for bodily injuries. Drivers also must carry enough bodily injury insurance to cover at least two people injured in a car collision that they have caused. In the example of Delaware, drivers need to have $15,000 for one person who has been hurt in a car collision. For the entire accident, Delaware drivers have to carry $30,000 for at least two people injured.

As has been outlined above, property damages also result from car collisions, and states also require that drivers have property damage liability coverage. It will cover all of the possibilities for property damage listed above. Delaware drivers are required to have $10,000 minimum of property damage liability insurance. These numbers are commonly written as 15/30/10.

Research & Know the Minimum Third Party Requirements

Drivers who do not currently have the minimum liability insurance and have not been stopped by law enforcement or caused an accident have one other thing to worry about. Periodically, the Department of Motor Vehicles (DMV) conducts audits on the vehicles that have been registered there. During these audits, the DMV is making sure that every driver has the appropriate 3rd party coverage on their vehicles. If the drivers cannot demonstrate this, there are even more negative effects for them to experience.

Continuing with the example of Delaware, when the DMV requests to see proof that drivers have obtained the state’s minimum required liability coverage, they must immediately offer this proof. Failing to do so means that a driver’s license will be suspended; the DMV will also suspend the driver’s vehicle registration. The fine that may be levied against this particular driver could amount to at least $75.

Take the Time to Get 3rd Party Car Insurance Quotes

Even though most people don’t want to get auto insurance, the fact is that you could face some heavy charges for trying to drive without it if you are caught. Your license could be suspended for years and you may even face jail time depending on your situation. There are many companies that offer free quotes online. All that you really need to do is collect some quotes, find the best priced quote, and purchase a policy.

You can use the form on the top of this site to get some free quotes – all you need to do is enter your local Zip Code and take a look at the results. In general, this type of insurance works pretty much the same way no matter where you live. Obviously third party plans through companies like NSW are slightly different because they use a system with “green slip insurance” in Australia, but in the United States, things are pretty easy to figure out based on the state in which you live.

Purchasing car insurance is something that people avoid generally because they are wary of having to pay high premiums, but it is much less costly than settling for a crappy policy and getting into an accident. The fines drivers receive after not being able to show proof of insurance to law enforcement, the possibility of being sued for the damages induced from an at fault car accident and the fines and suspension of license and registration from the DMV, are all too risky.  Get (at the very least) third party coverage.

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