Buying a new car is an exciting time. Doing the research, test driving your choices and selecting the right vehicle to get you out on the open road. It’s fun and marks an important new chapter in your life. However, a key aspect to getting a new car is securing appropriate car insurance.
As it’s a legal requirement for driving on public roads, car insurance is a necessity. The great thing is that EU consumers feel they can trust their insurance company more than any other insurance provider, with 69% of consumers saying they believe car insurance is value for money.
The European third-party car insurance market has a current value of €78.4 billion , demonstrating how many drivers invest in third-party car insurance ensuring that victims of traffic accidents received compensation.
In this article, we’re exploring exactly what is third-party car insurance and why you need to have it for your car.
Contents
● What is third-party car insurance?
● Does third-party car insurance cover damage to your car?
● How is third-party, fire and theft car insurance different?
● Feel protected with car insurance from GasanMamo.
What is third-party car insurance?
With so many motor insurance and car insurance policies out there, it can feel overwhelming when you start to look for the policy that will suit your needs. That’s why it’s a good idea to get a clear view around what is third-party car insurance and if it’s the kind of insurance protection you need for your vehicle.
A third-party car insurance policy is the minimum level of insurance protection required by law to drive your car throughout the EU, the UK, and Malta. Put simply, third-party car insurance protects you from the costs involved if someone is injured or their property is damaged while you’re driving your car and cause an accident.
Notably, third-party car insurance doesn’t cover any damage to your car or compensation for any injuries to yourself. So, if your car needs repairs after an accident that you caused, your third-party insurance policy won’t cover these costs.
Does third-party car insurance cover accidents?
Did you know that ‘third-party’ refers to a person involved in a car insurance claim that’s not you, or an authorised driver on the policy? So a third-party could be a driver or passenger in another car you have had an accident with, a pedestrian, passerby or even a passenger in your own car.
In the event of an accident where you’re deemed to be responsible, the other people involved in a potential insurance claim will contact your insurance company. This may be done directly or by their own car insurance provider.
If the accident is your fault, your car insurance company will pay out for any compensation for injury or costs for repairs required, once these have been approved. If you have a no-claims discount, this may be affected. You may also need to pay an excess. It’s a good idea to check with your insurance provider about the specific terms.
If an accident isn’t your fault, the insurance for the person responsible will pay for any damage of your car to be repaired or compensation to you for any injury. For this to happen you will need to claim against the insurance company of the responsible person yourself. Your insurance company cannot get involved in such a claim as the losses you suffer are not insured under a third party policy.
How is third-party, fire and theft car insurance different?
Third-party, fire and theft car insurance is slightly different to third-party only insurance. It still covers any damage to someone’s vehicle or any personal injury they sustain in an accident where you’re at fault. However, it also covers any damage to your car if there’s a fire or an explosion, or if it’s stolen or damaged during an attempt to break into it.
To be clear, accidental or malicious damage to your car or even damage would be typically not be covered under a third-party, fire and theft car insurance policy. Make sure that you insure the car for its current market value so that you are fully covered if it is a total loss.
A good tip is to always read the terms and conditions of your third-party car insurance policy, or any insurance policy you take out, to ensure that you fully understand the terms of what you can claim for and what isn’t covered under the policy.
Feel protected with car insurance from GasanMamo
At GasanMamo, we know how important safety and protection are to you and your loved ones. That’s why we tailor the most appropriate motor insurance policies to suit your individual needs, including third-party car insurance.
We also know how cost budgeting is necessary in the current economic climate, and always try to give you the most competitive premium possible.
Our third-party only and third-party, fire and theft insurance policies are available to safeguard your driving experience and provide excellent value for money at the same time.
Why not get in touch for a chat with our friendly team of experts and discover the car insurance policy that suits your vehicle and lifestyle the best!
GasanMamo Insurance is authorised under the Insurance Business Act and regulated by the MFSA.
Photo by: © AndreyPopov from Getty Images
