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Third Party Car Insurance

Many people may not think they need auto insurance and can manage repairs or damages to their vehicle on their own, which may be true in many cases especially if you have an older or low value, lien free vehicle. But what about damage caused to another person's property? Driving comes with responsibility, and a driver should acknowledge legal obligations and consequences that may arise on the road. Repair costs are rising and even a minor bumper scratch can be extremely expensive. An auto is not the only item considered as a third party's property this can include damage to buildings or fences, among other things. You can see how small items can add up to hundreds or thousands of dollars quickly. This is where Third Party Car Insurance comes in handy.

An accident is an unforeseen, unplanned event. When used in reference to automobiles, an accident can result in property damage, bodily injury or death. Anyone can have an accident - even the best drivers, so it's necessary to be prepared for such an unfortunate situation. The average driver may not be able to handle the financial responsibility of the aftermath of an accident. Third party car insurance is designed to provide protection in such a situation where you are legally liable for damage caused to another party's property, or bodily injury.

Third Party Insurance is a cost effective option with low premiums as it only covers the other person, and not damages caused to your own vehicle, so if this is the only cover you're carrying, and the crash is your fault, you may have to pay repairs for your own car out of pocket. Depending on the circumstances, some companies will cover legal costs and expenses in court proceedings (although fines are typically excluded) and may even provide limited cover to your car if it is damaged by an uninsured vehicle where you're not at fault.

Some insurance companies will only offer Third Party Insurance if your vehicle is over a certain number of years old usually thirty. This would be because parts may not be readily available, or expensive. In this situation, you want to look into a Classic Car or Specialty Insurance Company.

If your car is not old or classic but you want more cover you may want to look into Comprehensive Cover, or at least a Third Party Fire and Theft Policy, which would cover not only a third party, but your car for fire, theft, and possibly towing, depending on the company and policy.

You shouldn't confuse Third Party Insurance with Compulsory Third Party Insurance, which is also known as a green slip. Green Slip is required by law in order to register a car in Australia. However, just because 3rd Party is optional, you shouldn't overlook it. You wouldn't want to leave yourself vulnerable in to expensive repair bills.

If you want cost effective insurance with the sense of responsibility and the peace of mind that you can at least fix another person's property that was damaged by you, Third Party Insurance is a great place to start.

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