When it comes to title and registration services and auto insurance, you don’t have a lot of choice in the matter. If you choose to drive a vehicle on a legal road, you’re under requirement by law to buy insurance. There are different kinds of insurance available, though. One option is third-party insurance. Before purchasing third-party insurance, it’s a good idea to learn a little about this product. Here are some FAQs concerning this type of insurance option.
What Is Third-Party Insurance?
Third party is a type of insurance where one party pays premiums to an insurance company in return for protection against claims filed by a third party. This type of insurance usually comes in the form of liability coverage. Sometimes this is referred to as casualty insurance as it covers instances of bodily injury or property damage. According to Forbes, in 2023, in addition to buying liability car insurance, 75% of people also have collision coverage and 79% of insured drivers buy comprehensive coverage.
Why Do People Choose Third-Party Insurance?
In most cases, people choose this option because it’s very affordable. Third-party insurance is far less expensive than comprehensive. This is a good option for people who are driving a very inexpensive car or who can’t afford comprehensive insurance.
Is Third-Party Insurance Required by Law?
Drivers are required by law to carry a minimum amount of coverage. If you’re caught driving without proper insurance, then you will face legal consequences.
What Consequences Are There for Not Carrying Insurance?
There are a few different types of consequences for not carrying insurance. First, there are legal consequences. You can get a ticket and face fines. In some places, your license may be impacted as well. There are also financial consequences that you might face if you’re in an accident and you aren’t carrying insurance. For any damage that you might cause to another vehicle or any injuries that might result from a wreck in which you’re at fault, you could be legally liable. This could be catastrophic for you financially.
This is just a little information on third-party insurance. If you’re in need of insurance services or title and registration services, please contact us today. We are here to help you with insurance coverage at Mardini Multi-Services Inc.
