Here at Old Mutual iWYZE HQ, we are often asked about Third Party Liability Cover … how it works… and if it’s necessary. In this article we’ll help you to understand the ins and outs of Third Party Liability Insurance and why exactly it is so important.
In short: Third Party Liability Cover protects you against damage YOU CAUSE
We all think of ourselves as good drivers, but we’re all human and accidents happen in the blink of an eye.
Taking your eyes off the road for even a second, reversing out of your driveway without checking around your vehicle properly, or driving into another car – these are just some of the ways you could find yourself liable for damages.
Third Party Liability Cover (also called Vehicle Liability insurance) covers you against any claims that other motorists or property owners may make against you if an accident was your fault.
Who is the third party?
Third party Insurance may sound complicated, but it’s not. There are three parties (or people) involved in any accident claim:
- The first party – that’s you. (the vehicle owner)
- The second party – your insurance company.
- The third party – other motorists or property owners involved in or affected by the accident.
Let’s say you drive into another vehicle and then crash into a nearby property. If you were clearly at fault, you’d be liable to pay for repairs to both the other car and the property you damaged. In this example, there are two third parties who have a claim against you. Scary thought!
How Third Party liability claims work
Instead of dealing with the owners of the vehicles or property you damaged, you’ll be able to claim from your third party Insurance and let your insurer settle the damages on your behalf.
Simply provide the third parties with your insurer’s details, and they’ll deal with the third parties directly – keeping you informed throughout the process.
I have an old vehicle – do I really need this cover?
You definitely need this cover! No matter how old your car is, you’ll still be liable for the damages to other vehicles and property if you cause an accident – and that’s where Third Party Liability Cover comes in.
Your trusty wheels may not be brand new, but imagine if you accidently drive into a luxurious German sports car that’s worth more than a gazillion times your salary. Now imagine not having Third Party Liability Cover … not only is your own car damaged, but you’re also responsible to pay the hefty bill for repairing that sports car as well, and any legal costs on top of that. Ouch!
To save yourself the stress and hassle of settling this type of liability, a third party insurance policy is essential.
How to apply for Third Party Liability Cover
- If you’re a comprehensive car insurance policy holder at Old Mutual iWYZE,Third Party Liability Cover is included in your current policy –
- If you’re uninsured, Third Party Liability Cover is the bare minimum of cover you should have, but it is advisable to rather opt for the third party, fire and theft cover option if possible. Simply click here and we’ll have you set up with affordable Third Party Liability Cover in next to no time.
Wise Alert: It is important to remember that cover for third party liability will pay out on a claim made against you, for damage that you caused – it won’t cover loss or damage to your own vehicle. That is why comprehensive car insurance remains the most recommendable car insurance option.
With Old Mutual iWYZE, comprehensive car insurance is affordable, takes only minutes and comes packed with loads of value-added built-in benefits – see for yourself how little it is or how much we can save you on your current insurance premium.