Car accidents are common in every part of the world—Toronto, on the other hand, witnesses a high number of auto accidents daily. Therefore, every driver must have auto insurance to protect themselves in unfortunate circumstances. You must have heard of different insurance-related terms when filling out the forms to insure your vehicle. The insurers inform you about different types of insurance and their benefits. One such type is their-party liability insurance. You must be wondering why this is important if you have protected your car from damage. This article cites everything you need to know about TPL insurance.
What is Third-party Liability Insurance?
Canadian drivers must have a tort claim or third-party liability when buying a new or used car. In Canada, when you purchase insurance, it automatically includes third-party liability. Simply put, a tort claim is when the first party purchases insurance from the second party to protect themselves against any damage claims by another party in case of a car accident. Therefore if you are Getting a car in Toronto? Get insured today! It will help you protect against any damage claim from another party when you are involved in a car accident. The insurance company deals with the third party and pays all dues, if any.
What are the parties involved in third-petty insurance?
There are three parties involved in a tort claim:
- First party: The policyholder or the owner of the vehicle
- Second-party: Insurance company
- Third-party: The business of the person filling out the claim
Which liabilities does third-party liability insurance cover?
Widely, there are two types of damages that a tort claim covers:
- Bodily injuries: as the name suggests, any damages to a person and all the costs related to medicare, lost wages, suffering, emotional pain, and mental distress are covered by a tort claim.
- Property damage: includes the costs related to damage to or loss of property. It could be the vehicle, mailbox, landscape, or any compensation for the loss of a structure.
How does a third-party liability claim benefit you?
Every state has its requirements and mandates for the drivers. They set their rules for the tort claim. It is true for both no-fault states and at-fault states. Buying a third-party liability claim can benefit in the following ways:
- Drive responsibly and legally: When you know you are protected against accidental claims, you naturally drive responsibly. No cop can put you behind bars or force you to pay the money. The third-party has to deal with the insurance company.
- Save time and money: In unfortunate cases, if you cause an accident and there is some injury to the third party or any property loss, you can rest assured that the insurance company will pay the dues. You do not have to pay any funds from your pocket. In addition, you can be at peace that no sudden expenses will be put on you during unfortunate circumstances.
Third-party liability insurance comes in handy when you meet with an accident and it causes damage to or loss of life and property. As the car owner, you do not have to spend money from your pocket to aid the medical expenses and other costs. It becomes the insurance company’s duty to pay the dues to the sufferer party. Also, it is illegal to drive a car without complete documentation. Therefore, having a valid driving license, auto insurance, and registration proof is important.