What is third party liability insurance for car rentals

have you ever heard of third party insurance? See how third-party insurance works and what it covers when you rent a car.

let’s say you’re ready to rent a car. In the middle of the reservation process you read the words “third party insurance”, but you don’t know what it really means or what it covers. you think to yourself do I need this?

Reading: What is third party liability insurance for car rentals

To answer this question, let’s first take a look at what liability insurance is, as this will help you understand how it applies to car rental.

Basically, third-party insurance protects you in the event of any damage caused to someone else’s property; that’s the third, of course. a real life example would be if you are doing some work on your house and you accidentally damage your neighbor’s car with a brick. liability insurance would cover that.

so… how does that work when it comes to car rental?

what is third party rental car insurance?

Third party car rental insurance can cover damage caused to anyone or anything besides you and the rental car itself. In the event of an accident, for example, it can cover damage caused to the other car involved, to the passengers inside it, or to other people’s property.

See also: Property Damage Liability Insurance: 2022 Guide

Also, you should know that there are many different names for third party insurance, such as:


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