What Does Third-Party Liability Insurance in Auto Insurance Cover?

[MacThomas]

Third-party liability insurance covers the repair costs of the third party's vehicle, damages to the third party's car body caused by the insured, and medical compensation for the driver, among others. Additional information is as follows: 1. Third-party liability insurance: Refers to the financial liability that the insured or their permitted driver must bear under the law when an accident occurs during the use of the insured vehicle, resulting in bodily injury, death, or direct property damage to a third party, for which the insurance company is responsible for compensation. 2. Classification of third-party liability insurance: It can be divided into voluntary liability insurance and compulsory liability insurance based on whether it is mandatory. According to the scope of coverage, it can be classified into third-party bodily injury liability insurance and third-party property damage liability insurance. Compulsory liability insurance can be further divided into relatively compulsory insurance and absolutely compulsory insurance based on the degree of compulsion.