How Third Party Auto Insurance Works And Why You Need It

Third party auto insurance simply means that if you crash/damage someone else�s car, the insurance company settles the bills, the insurance company pays the owner of the vehicle (Third party). If you injure someone with your vehicle, the insurance company also pays for the damages incurred by the third party .

For a third party auto insurance policy, the first party is you; the second party is the insurance company while the third party is everyone else. It covers you for claims made against you by other drivers after an accident.

If you are responsible for a crash, it is likely that you are going to pay for damages. Auto insurance policy covers all the claims made against you including injuries obtained by the third party.

However,  under this insurance policy you cannot claim for the car you are driving as the insurance policy doesn�t cover the car you are driving. The insurance policy only covers the car you hit.

If you choose a registered insurance company, you will be able to escape such dramatic and unplanned costs. For example, if you hit a pedestrian on the road, the insurance company will pay the bills.

Note that the money to pay for damages comes from premiums. If premiums hasn�t been paid to the insurance company, there won�t be any compensation in case of accidents.

However, it is worthy to note that claims you make on an auto insurance company maybe limited. Some insurance companies may only cover the loss up to a certain amount say N1000,000. This simply means that if a vehicle you damaged is worth N4000,000 the insurance company will only provide N1000,000. So it is important to find the limit to loss the auto insurance company you choose covers before subscribing.

If you try to cheat the insurance company, you maybe arrested, so it�s good to be honest always. Be honest, don�t try to rip them off or stage an accident and you will be paid.
List of Auto Insurance Companies in US

    American Automobile Association
    Auto-Owners Insurance
    Safe Auto Insurance Company
    State Auto Insurance Group
    Unitrin Direct Auto Insurance
    Workmen�s Auto Insurance Company

List of Auto Insurance companies in Nigeria

    Industrial & General Insurance plc
    Cornerstone Insurance plc
    Aiico Insurance Plc
    Adic Insurance Ltd
    Leadway Insurance
    Zenith Insurance
    Cheki

We are only explaining how auto insurance works and listing auto insurance company More Auto Insurance companies  coming soon. kindly share to your friends