Back to blogUpdated · 1 min read

Third-party liability cover

Think of it as protection for everything that your car might damage while you are driving it, except for your car itself.

What does third-party liability cover?

Third-party liability protects you when a third party lays a damage claim against you after you are in a car accident where you damaged their car or property and they hold you legally responsible to cover the cost of their damage. Most insurers also cover you in instances where you cause damage to other people’s stuff, even if you are driving a car that isn’t the one you’ve insured with them.

Is third-party liability insurance compulsory?

In many countries, all car owners are required to have third-party liability insurance by law. However, in South Africa, it is not required by law.

What is the risk if I do not have third-party liability insurance?

The risk is that you drive into the back of a Ferrari 250 GTO and the owner holds you legally liable for the repairs, and it ends up costing you a million or two.

You might also like

Definitions

Short-term insurance

Short-term insurance is insurance that you take out to cover you against financial losses you could suffer due to sudden and unforeseen events.

1 min read
Definitions

Home contents insurance

Home contents insurance covers you against loss or damage to all the stuff in your home that is not a permanent part of the building. It would usually also include personal liability insurance.

1 min read
Definitions

Cancellation

Cancellation is when either you or your insurer decides to terminate your current insurance policy from a specified date. You will then have no cover from that date onwards.

1 min read