What Is Third Party Liability Insurance - AICA Orthopedics

If you've been in a recent car accident, you may have heard the term "third-party liability", but what does that mean?

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When you pay for insurance, you are covered if something terrible should happen, like a car accident. You are the “first party.”

Third-party liability means that the insurance company will only cover the other person involved in the accident. Insurance will pay for their medical bills and damages after a third claim is filed against the at-fault driver.

If you are the driver involved in an accident (first-party) and you only have third-party liability through the insurance company (second party), then your insurance company will only cover the injured passengers (third party) after they file a claim.

You, as the insured driver, are responsible for covering your damages as the insurance company is only required to cover the third party.

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