What Does Auto Third-Party Liability Insurance Cover?
3 Answers
Third-party liability insurance includes: death and disability compensation; medical expense compensation; property loss compensation. Below are the detailed explanations: 1. Third-party liability insurance covers accidental incidents caused by qualified drivers permitted by the insured while using the insured vehicle, resulting in direct personal injury, death, or property loss to a third party; 2. The compensation amount legally payable by the insured will be covered by the insurer according to the relevant provisions in the insurance contract. Additionally, if arbitration or litigation costs arise for the insured with the insurer's written consent, these will be borne by the insurance company; 3. This insurance primarily ensures that third-party victims in road traffic accidents receive timely and effective compensation; 4. Post-accident follow-up work must be handled by the insured; the insurance company will provide compensation beyond the liability limit, but not exceeding 30% of the liability limit.
When I first bought a car, I was confused about third-party liability insurance, but later I understood it's insurance that covers others' losses. It mainly includes two parts: first, bodily injury to others, such as when your car hits a pedestrian or an electric bike rider, the insurance company will compensate for their medical expenses, lost wages, etc.; second, property damage, like scratching someone else's car or damaging a roadside store's signboard, can also be compensated for repair costs. The key is to purchase sufficient coverage limits, such as the commonly chosen 1 million yuan limit in cities now. If it's too low, you might not be able to cover the costs in an accident. My neighbor got into a dispute because the coverage was too small when an accident happened. Don't skimp on adding a no-deductible additional insurance for more comprehensive coverage and peace of mind. Remember, it doesn't cover your own car or injuries; you'll need to purchase vehicle damage insurance for that.
Having driven for over 20 years, third-party liability insurance has always been my primary coverage. It specifically covers losses you cause to third parties, such as accidentally hitting someone and compensating for their medical and rehabilitation expenses; or damaging others' valuable items like vehicles or property, with claims covering repairs and compensation. I recommend keeping the coverage amount no lower than 500,000, as roads are complex and accidents are prone to happen nowadays—higher coverage brings peace of mind. Premiums are also influenced by factors like a good driving record, which can save you some money. Additionally, when choosing coverage, consider urban safety factors—rural areas with lower risks may allow for slightly lower coverage amounts. Regularly review your policy to avoid gaps and ensure your driving doesn’t burden your family.
