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What is Third Party insurance in Car Rental?

Man standing with his car.When renting a car, you might read terms in the paperwork that you’re familiar with. And alongside that, even terms that you’re unfamiliar with. One such statement in the booking process that confuses consumers is ‘Third Party Insurance.’ So, what exactly is Third Party Insurance?

Today, we’re going to take a look at what third party insurance is, how it can protect your car and whether it’s a good idea to get it!

Third Party Insurance

A third party insurance helps cover any damage caused by the rental car in use to anyone or anything apart from you and the vehicle itself. That means if an accident occurs, the third party insurance can cover any damage occurred to the other car, driver, or the passengers inside the car.

Third party insurance has many different names, but they all mean the same. You might come across terms such as third party liability, additional liability insurance, extended protection, or supplemental liability insurance. Although different names, they all serve the same purpose, to protect the other person and their property in the event of a collusion.

What Would The Third Party Insurance Cover?

Car damage.In case of an accident where you, the driver, is at fault, then the third party insurance can cover the following damages:

  • Damage to the third party’s property. This could be the car, a fence in their driveway, a laptop in their car, or anything else that belongs to them.
  • Third party and their passengers’ injuries. This could be any injury to the person who was driving their car or the people in the car with them. The insurance would cover any medical bills or loss in earnings due to the accident.
  • Third party legal costs. Any court or lawyer fees that the third party has to deal with will be covered through the insurance as well.

It’s also important to note that although the insurance will cover any damages to the third party’s car, property or self, the same cannot be said about the renter and the car in their possession. For protection against any damage done to the renter, Collision Damage Waiver Insurance can be availed.

Should I Get Third Party Insurance?

Nearly 20-50 million individuals suffer non-fatal injuries from road accidents in the US alone. The thing about accidents is that no one can predict them. And being at the offending end of a car accident can be an expensive and devastating experience.

To protect yourself financially, third party insurance is an incredibly wise investment. It gives you an ease of mind while driving and can help you avoid paying out of pocket if an accident ever does occur.

Now that you know how to move forward with caution when renting a car, you can avail rental car services in Philadelphia when you book with RentalCars1.com.

Contact us today for more information or to book our rental car services.