#third-partycoverage

Third-party coverage is a type of car insurance that provides coverage for damage you cause to another person's property and any injuries they suffer due to an accident you cause. In most countries, they must carry out the minimum legal requirement for car insurance. However, just because it is the bare minimum does not mean it is your best option. This article will examine third-party insurance in more detail and highlight ten disadvantages you should be aware of when it comes to third-party insurance.

Top Disadvantages of Third-party Insurance Policy

Limited Coverage One of the most significant disadvantages of third-party insurance is that it only covers damage to other people's property and injuries they may sustain in the event of an accident you cause as a result of your negligence. You will not cover damages caused to your vehicle or any injuries you may sustain. Therefore, if you are involved in an accident and your car is damaged, you must pay for the repairs. No Coverage For Personal Belongings A third-party policy wouldn't cover damage to your phone, wallet, or laptop if it happened in your car. In other words, if someone breaks into your vehicle and steals your belongings, you're out of luck. No Coverage For Natural Disasters A third-party insurance policy does not cover damage from natural disasters like floods, earthquakes, or hurricanes. As a result, if you live in an area prone to natural disasters, consider getting comprehensive insurance for better protection. No Coverage For Vandalism Vandalism is also not covered by third-party insurance. Therefore, if someone sprays paint on your vehicle or smash one of your windows, you must pay for the necessary repairs out of your pocket. No Coverage For Accidents With Uninsured Drivers Damages caused by uninsured drivers are also not covered by third-party insurance. In other words, if an uninsured driver hits you, you'll have to pay for your repairs or hope the other driver has enough assets to compensate you. No Coverage For Medical Expenses Additionally, third-party insurance does not cover medical expenses incurred due to an accident. If you suffer an injury in an accident and require medical treatment, you'll have to pay for it. No Coverage For Towing And Roadside Assistance Towing and roadside assistance are also not covered by third-party insurance policies. It means that if you have a breakdown and need your car towed, you must also pay for it. No Coverage For Rental Cars Rental cars are also not covered by third-party insurance. As a result, if you're in an accident while driving a rental car, you'll have to pay for the damages yourself. No Coverage For Loss of Use Third-party insurance does not cover loss of use either. In other words, if your car is damaged in an accident and can't use it, you'll have to pay for alternative transportation. No Coverage For Custom Upgrades Similarly, third-party insurance does not cover custom upgrades like custom paint jobs, wheels, and sound systems. Therefore, you must pay for the repair if the accident damages your custom upgrades.

Final Thought

  Third-party-only insurance (TPO) is the minimum level of car insurance cover you can buy. This kind of policy helps protect you against damage to any third party or their property. That is, it helps protect other people, vehicles, and property. So if there were an accident, your policy would payout to cover the repairs and medical expenses to the other driver if the accident was your fault. The next level cover is Third-party, fire and theft (TPFT). It gives you all the benefits of third-party insurance and includes paying you if your car is stolen or damaged in a fire.

Is Third Party, Fire And Theft Cover Suitable For Me?

A Third-party, fire and theft (TPFT) policy is the most fundamental insurance policy you can buy that will cover you against damage to your car. It is helpful if you need that smidgen of additional cover that essential third-party insurances cannot provide. Yet, you do not want to fork out for a fully comprehensive policy. TPFT turns into an incredibly reasonable alternative in case you’re driving a car that is either moderately inexpensive or relatively straightforward to fix.

What To Consider Before Buying A Third Party, Fire And Theft Policy?

As TPFT policy offers you some extra coverage, it will probably be more expensive than a third-party policy but, most often, cheaper than a comprehensive policy. This policy is best for drivers who have gained some experience but are still pretty new to driving or those with a vehicle value towards the mid to lower end of the scale. When buying a third-party fire and theft policy, it is imperative to consider your vehicle’s repair costs. If the costs of fixing the car after an accident would probably surpass the cost of changing the car, but you still want cover from fire or theft, then third party, fire and theft policy may be the best match for your needs.

What Does Third-Party, Fire And Theft Policy Entail?

Third-party, fire and theft policy does not cover your vehicle if you’re involved in an accident, and you are at fault. It only covers the other driver. Other protections include:

Injury to a third party, i.e., the other driver or passenger

Damage to third-party’s car

Damage to third-party’s property – for example, if you drive into a wall.

Replacing your stolen vehicle

Fixing your car if it’s dented in an attempted theft – for example, if your windscreen is broken

Replacing or fixing your car if it’s destroyed by fire

Sometimes your insurance company will not pay out if you find yourself under any of these circumstances:

You didn’t properly secure your car before it was robbed

When your car is damaged because of fire resulting from mechanical, electrical, electronic, or computer failures.

When you are in an accident with a car that isn’t yours or listed on your insurance policy

Damage to yourself or your car if you’re involved in an accident.

Following having your vehicle breakdown, your car insurance company will cover whatever costs you incur for repairs to an extent, depending on what type of coverage you have in place. Sometimes, you wake up on the wrong side of the bed. A car that was working just fine yesterday won’t start up the following morning. Worse, you could be on your way back home after a long and stressful day at work and have your car breakdown on you half-way. What do you do? You have car insurance, but to what extent does that help you here?

Whether you just had the vehicle breakdown on you or you’ve been in an accident, and the car needs extensive bodywork, it is vital to know where you stand and what to expect from your insurance agency regarding your vehicle fixed. Setting aside the type of insurance agency you’re using, the type of insurance coverage you have on the affected vehicle will determine the extent to which the expenses are covered. As far as car repairs go, three auto insurance coverage types come into play when your vehicle needs repairs. These different coverage types insure your car to varying degrees, so knowing what they do and do not cover is very important.

Moving forward, you should note that no coverage will completely cover you for full car repairs. The primary reason for this is that every plan will require that you pay what is called “excess.” It is only after you’ve paid this that your insurer comes into play and handles the rest of the cost. The amount you pay as excess is usually decided when you get an car insurance plan. Generally speaking, the lesser the amount you pay as excess, the higher your premiums will be. The advantage of this is that when you eventually file a claim, you have less to pay out of pocket.

  Types of Car Insurance Coverage

The first type of car insurance coverage is…

Third-Party Insurance

This type of insurance coverage is purely mandatory. It is what covers the expenses you incur should you damage another individual’s vehicle or property.

Third-Party, Fire and Theft Insurance

This insures your vehicle in case it’s damaged from a fire accident or cases of theft. This type of auto insurance can be considered mandatory or optional, depending on the vehicle’s ownership status. If you are only leasing the vehicle, then this insurance is a must for you. However, if you have fully paid for the car, you may choose to get this insurance. You should note that this auto insurance doesn’t cover car repairs that pop up suddenly.

Comprehensive Insurance

This primarily includes whatever expenses you incur from non-driving related incidents. It covers everything from vandalism to theft, to acts of nature. In extreme cases, where your vehicle needs to be replaced entirely, comprehensive insurance ensures you get paid the actual cash value (ACV) after your excess must’ve been removed.

And finally… Should you be involved in a car-damaging occurrence, get in touch with emergency services and the police where necessary. After that, contact your insurance agency and report a claim. This is because the quicker you reach out and begin the process, the faster you can get things sorted out.

Someone might have told you that they agreed on a life insurance policy that includes a maturity benefit. The idea of this benefit sounded nice, and now you are wondering if you can use it for your car insurance deal. Before we answer that question, here is a basic overview of the maturity benefit!

  What Is a Maturity Benefit?

If you sign an insurance policy, it will be valid for a specific period. During that time, you are required to pay the premiums, and the insurance company needs to honor their part of the deal by following the terms of the signed contract. A maturity benefit is a guaranteed payment of the insurance company to the policy user once the contract reaches “maturity.” This term marks that the validation period of the policy expired. For example, you’ve signed a life insurance policy for 12 years. Over those 12 years, you need to pay the premiums regularly. Once that time expires, you will be eligible for a guaranteed payout. The payment usually includes the premiums plus an added bonus.

  Can a Car Insurance Policy Have a Maturity Benefit?

No, car insurance policies do not come with a maturity benefit. Instead, once the term expires, the policy will lapse. That means your rights to a claim will expire and you will need to renew the policy or sign a new one.

What Are Some Benefits Provided by a Car Insurance Policy?

While you might not have the right to a maturity benefit, there are other advantages that a car insurance policy brings. Here is what you might expect once you sign a deal.

  Financial Protection

The essential benefit of a car insurance policy is financial protection. Depending on the extent of your cover, it could include:

Third-party bodily injury and death claim – Any injury of the persons outside of your vehicle that participated in the same road accident as you.

Third-party property damage – If other vehicles or someone else’s property have been damaged in the road accident in which you participated.

Theft and fire – This coverage will protect you against someone stealing your vehicle or it getting on fire accidentally.

Own damage claims – It can be no-fault or regular damage claim, but it needs to refer to your vehicle that participated in the accident.

You also have add-ons that could cover your windscreen, secure compensation for assessed repair time, or offer coverage if a flood happens.

  Peace of Mind

While you should always be driving responsibly, the fact that you have a car insurance policy will offer peace of mind. If your vehicle gets damaged through no fault of your own, you can rest assured that the insurance company will cover the expenses. That means you don’t have to worry about entering a rough financial patch because of a small accident that you couldn’t have avoided.

  A No Claim Discount

Depending on the agency, NCD benefit might also be called a No Claim Bonus (NCB). The purpose of this discount is to secure better policy rates for responsible drivers. If you don’t file a claim during the last year and you don’t have any claim against the insurer made by a third party, you will be eligible for a discount. The discount varies from one agency to another but usually increases with time. In the second year of your deal, the premium might be a tempting 25%.

After the fifth year, it could increase by over 50% for private vehicles. Commercial vehicles have a lower discount, but they can still go to 25%. All these percentages are quite tempting and should motivate policy owners to drive responsibly.

Simply put, the best answer to this question is almost always; as quickly as possible. Filing an insurance claim is an incredibly legal process that requires you to follow certain steps at specific points in time if you want to achieve the desired result. Failure to follow these steps could lead to your insurance claim being denied or not paid in full. Being involved in a car accident or having your car stolen is something no one ever wishes for. It’s messy, it’s dangerous, and people could get hurt. It is for these reasons that you should ever find yourself in either of these unpleasant scenarios, and you must guard your wits, first and foremost.

Car insurance is an essential criterion for being on the road. For people who do everything they can to drive carefully and pay their premiums on time, it’s vital you know when to take action in cases of accident or theft so you can enjoy the full benefits of your insurance policy.

  If You’re Involved In An Accident

First, you need to make sure you’re okay. Once you’re confident you’re fine, you can contact the authorities, if necessary. If not, it’s always advisable you contact your insurance company immediately after. If you can’t do that right away for some reason, ensure you do so no later than 24 hours after the car accident. The importance of this can’t be overstated. First, the longer you wait to report an accident to your insurer, the harder it is for them to ascertain your claim. Second, it also means you’ll have to wait longer to receive any payout for your claim.

Depending on the insurance coverage you operate and the nature of the accident, you are entitled to filing two types of claims:

Own Damage Claim

You can only file this claim to your insurer if you are on a comprehensive insurance policy. As a result of this, however, you may lose the benefits of having a No-Claim Discount.

Third-Party Claim

This claim is filed by the insurance company of the other party involved in the accident. It is only valid if it has been confirmed that you bear no fault in causing the accident. In this case, it doesn’t matter what insurance plan you’re on. Consequently, your NCD is left untouched.

If Your Car Has Been Stolen

Report this incident to the proper authorities at once! Contact your insurer immediately after. Keep in mind that you can only expect payout if you’ve taken out more than the basic car insurance package. In cases of car theft, you can usually expect a payout from your insurer after about six months. Typically, this is how long it takes for the police to close such cases.

  Types of Damages You Can Claim

General Damages

Pain and suffering to your person or passengers resulting from the accident are filed under here. You can only claim this compensation from the insurer of the other party involved in the accident. That means that the other driver has to be deemed responsible for the accident to receive any payment. Therefore, the amount of compensation you get here depends on how involved you were in causing the accident.

Special Damages

This claim covers any of the following expenses resulting from the accident. The type of insurance you have will determine the extent to which these expenses are covered.

Medical expenses

Costs of transportation

Cost of vehicle rental, and so on

  Conclusion

You can’t control how or when accidents happen. However, you have control over what you do after they occur. Contact the appropriate authorities immediately after an accident. Don’t wait more than 24 hours to get in touch with your insurer. Lastly, be sure you understand the extent to which your insurance coverage financially protects you.

Typically, there isn’t any car insurance package that comes with coverage for engine failures. However, there are add-ons you can take in addition to your standard insurance package that may cover engine failure expenses. Also, most insurance packages will extend to engine failures if they are a direct result of an accident or another insured incident.

As bad as any fender bender accident is, adding engine failure to the mix is almost always guaranteed to make it worse. It’s on days like this you thank your stars you have an operational insurance policy. So whether you’ve been involved in an accident and your car won’t start after, or your vehicle broke down on your way to work, and it just won’t kick, your insurance package, among many other things, will determine who’ll be covering those expenses.

The exact nature and cause of the accident, not to mention your insurance coverage, often factors strongly into how much of your engine repairs you’ll have to pay out of pocket.  

  Insurance Packages That May Cover Engine Failure

Before delving any deeper, it bears mentioning that if you’re operating the necessary third party insurance package, no damage to your vehicle will be paid for by your insurance company. Elementary third-party insurance coverage only covers damages the other driver or vehicle might sustain during the accident. However, any of the following insurance packages may include the repair expenses for your engine.

Third-Party, Fire and Theft Coverage

This insurance package will cover all the engine repairs expenses if your engine was damaged as a result of theft, (perhaps if an engine component was stolen), or if the engine suffered damage as a result of a fire. Please note that you forfeit any rightful claims to a payout in the case of an accident if it is adjudged that you were at fault.

Comprehensive Coverage

Significantly pricier than the third party, fire, and theft coverage, the full insurance coverage package makes up for this by covering even engine damage that occurs as a result of an accident. In addition to this, there are many add-ons you can include in your comprehensive coverage plan that can further insure you against any financial costs of repairing your car engine. However, you are likely to lose your NCD (No Claim Discount). It’s a small price to pay though for cover for those expense engine repairs.

Alternatively, if your car engine is damaged in an accident and the other driver admits fault, it falls directly on that driver to cover all the expenses for your engine repairs. Ultimately, the better your insurance policy is, the more likely it is that engine failures are covered in your package. Of course, the only way you can be 100% confident is to go through the fine print of your policy to determine what you’re insured for entirely.

Vehicle owners in most states within the country are required to have car insurance coverage to ensure that they can cover whatever damage or injury that occurs during the use of the vehicle. You see a vehicle you like. You check out its specifications and price, buy it, and start using your vehicle pronto. Life should be that easy and straightforward, right? However, things are rarely ever that easy. When it comes to owning and using a vehicle in the country, there are many things involved. One of them is car insurance. You’re probably thinking, why do I have to get car insurance? They’re so complicated and difficult to understand, do I need to get involved with it? Short answer–Yes! Like every other type of insurance out there, car insurance is available purely for your safety and that of the people and property around you. Because car insurance is a must-have before you can freely use your car, it is regulated at the state level, not at the federal level.  

  Why Is Car Insurance So Important? Because You Need It!

Surprising, isn’t it? Well, it’s true, and this is why. From the moment vehicles came into use, it was clear that accidents would be inevitable. Car insurance is the only way to safely guarantee that any car owner’s damage or injury inflicted on another person’s self or property would be assuredly paid for. The assumption behind this reasoning is that if vehicle owners cannot cover the expenses of the damages or injury they cause, the society at large would suffer financial loss. That is why obtaining at least a third party insurance policy, among other things, is mandatory before your vehicle can be duly deemed roadworthy. Even the most careful drivers will, at some point in time, encounter accidents one way or the other. Having insurance is a safety measure that helps make sure that such mishaps don’t affect you severely, financially speaking.  

  What Type of Car Insurance Do I need?

Not all “types” of car insurance is mandatory. While it is always good to get as much coverage as you can easily afford, the law doesn’t necessarily demand that of you. If you aren’t getting the full car insurance package, there are two types of car insurance you should know about. They are:

Third Party, Fire and Theft Insurance

Third Party Insurance

Third Party, Fire, and Theft Insurance got your vehicle covered in incidents like theft, vandals, and so on. Because this insurance is solely for your protection, you may choose to or not to get it. It is, as such, not mandatory. On the other hand, Third Party insurance is very compulsory because it is this insurance that covers whatever harm is caused to someone else or their property.  

  Conclusion

People often ask this question a lot- Is there any car insurance with unlimited coverage? This is a good question, and I will help answer it and explain the different car insurance packages you can go for. Every vehicle owner is required to purchase automobile insurance before the vehicle can be put on the road. Though there are certain circumstances when an insurance company can refuse to insure you because of several reasons.

  Does Auto Insurance Come With Unlimited Coverage?

The simple answer is NO. Let me explain why–

Most insurance companies will not offer unlimited auto car insurance because they might not be able to fulfill it. Sounds ridiculous right, OK let’s think about this scenario. Imagine that the Military is transporting some thermonuclear warheads on a truck to bring them to a service point in a city. Now a driver that supposedly has “unlimited” auto insurance happens to be at the wrong place at the wrong moment and crashes the car against the truck carrying the thermonuclear warheads.

They fall off and explode. A whole city was destroyed. How serious do you think is the damage? Five, ten, twenty trillion dollars? Do you think there is an insurance company on earth that can balance a five, ten, twenty trillion dollar check? Maybe not. This is because the word “unlimited” stands for “without limits,” so irrespective of the damage caused, the company will be ready to cater to it. As such, insurance companies will not offer such coverage because they do not have unlimited funds. This might even be regarded as against the rules of fair competition and probably illegal. Of course, insurance companies can offer remarkably high coverage and different packages, but unlimited coverage might not seem right.

  Which Auto Insurance Package can I go for?

Basically, in Malaysia, there are three types of auto insurance packages available-

Third-party coverage,

Third-party fire, and theft coverage,

Comprehensive coverage.

  Third-Party Coverage

A Third Party Cover is the least expensive among the three offered car insurance packages. It’s the most basic and insures you against any injuries or deaths caused to the third party (basically that’s everyone else aside from you and your insurance company) and loss or damage to the third party property caused by your vehicle. You should note that this policy doesn’t cover you for any damages to yourself or your car.

Third-Party, Fire and Theft Coverage

A Third-Party, Fire, and Theft policy is pricier than a Third Party Cover but cheaper than a Comprehensive Cover. Third-party fire and theft cover work just like a third-party cover. This policy protects you against claims by a third party, be it bodily injuries or death, but with the added coverage of damages from your vehicle’s fire and theft. It allows you to file for a claim if your car suffers fire damage or gets stolen.

Comprehensive Coverage