What is Third Party Insurance in Car Rental?

Imagine that you are talking to a rental company, ready to fast rent a car. However, while you are going through the rental agreement, you learn about Third Party insurance. It is likely that you may have heard about this before, but it’d be difficult to determine if you actually need it just by reading those words.

As the name suggests, this insurance provides protection for damages that might be caused to somebody’s property that is not yours. For instance, if you were unfortunately in a minor road incident, the expenses of repairing any dents or scratches that may have occurred to the other vehicle would be covered. This is applicable to rental cars as well.

What Does It Mean in Terms of Rental Car Insurance?

This covers most of the damage that will be caused to somebody’s property because of a mistake you made. Thus, anything other than you and your rental, for instance, will cover any damages that might occur on the car, any harm to people inside the car as well as any other property that might be damaged.

Various rental companies name it differently. These insurances will cover different damages but essentially, they are responsible for protecting any individual or their property that might be destroyed in any accident.

What Is Covered By Third-Party Insurance?

The following are some damages that are usually covered under the insurance:

• Expenses for repairing the damage that might have been done to their property.
• Expenses for repairing the vehicle that might have been damaged in the accident.
• Cost of injury that may have occurred to the third party.
• Legal fees.

It is important to note that these kinds of insurance might be named differently, and they would cover different types of damages depending on the rental company.

What Is Not Covered By This?

• Any damage that might be done to your car.
• Loss of valuables that might be present inside or any damage done to things inside the car.
• Any injury to the renter.
• Theft of the car.

Essentially, this wouldn’t cover any harm that might occur to your vehicle. There are other kinds of insurance for that – Collision Damage Waiver or Insurance. This can be purchased separately.

Will I Need Third Party Insurance?

Like most insurances, you won’t realize its necessity till you are in the unfortunate circumstances where you regret not getting it. Hence, as a general rule, it is advisable to purchase insurance.

Conclusion

Most countries make it a compulsion for renters to purchase this. Normal insurance sometimes covers this as well. However, it’d depend on the company. You can Send an inquiry beforehand and ask your rental company for the same.