Everything You Need to Know About 3rd Party Insurance
To drive a car on Nigerian roads, it is legally required that you first get car insurance. Car insurance comes in different types depending on the scale of protection provided. 3rd party insurance is the cheapest insurance cover that car owners can get to insure their cars. It is also important to note that at times, third party car insurance can be the only option that car owners can access. Before you choose this type of car insurance, it is best to have some background information so as to make an informed decision. Below we will take a detailed look at 3rd party insurance for informational purposes.
What is 3rd party insurance?
This type of insurance provides cover for any damage, injury or even death resulting caused by the car on third parties. The car owner taking the 3rd party car insurance is referred to as the first party. The insurance company, in this case, is referred to as the second party while the third party is the protected party under this cover. The first party is left to cover the cost of damage on their car while the insurance company covers the cost of damage incurred by the third party. The insurance company usually covers the cost of damage to the third party as well as any legal costs involved in the case.
When is it Best to take up 3rd Party Insurance?
Car owners are best suited to taking up 3rd party insurance when their vehicle’s value is negligent. The car owner can be able to cover the cost of repairing their own car but since the damage to third parties is not predictable, it is best to have the help of an insurance company to cover it effortlessly. In some cases, insurance companies are only willing to issue 3rd party insurance on cars that satisfy some set requirements. This is the case for very old cars whose repair can be quite expensive due to the unavailability of spare parts.
However, car owners whose vehicles are relatively new and in great condition should desist from taking third party car insurance as it is not suitable. 3rd party insurance does not cover theft or total destruction of a car. As such, the occurrence of these events would leave the owner without any solution to turn to. There are other policies that provide more cover for car owners as compared to the limited cover offered by third party insurance.