Monday, April 27, 2015

Auto Insurance 101: Third Party Liability

Third Party Liability (TPL), which is included when you obtain a comprehensive insurance, covers the liability (expense you have to shoulder) in the event you accidentally injure a third party (pedestrians, other drivers, or your passengers that are not members of your household or family and are beyond the second degree of consanguinity).

Although it does not cover liability to any sort of property, whether it's the vehicle, other vehicles involved in the accident or damage to standing properties in the scene of the collision. This is where Property Damage or PD comes into play.



The PD will cover the extent of the damaged property within the accident. This coverage pays for damage you (or someone driving your car with permission) may cause to someone else's property. Usually, this means damages to someone else's car, but also includes damages to lamp posts, telephone poles, fences, buildings, or other structures your motor vehicle may hit.

The advantage of having the TPL as well as the PD coverage with your car under a Comprehensive Insurance is that on the occasion that an unfortunate incident occurs, asides from saving on repair cost, you will also benefit from the hassle of paying for physical injury, doing paperwork and legwork.

Rather than jumping from one government office to another, waiting in line and getting documents stamped, the insurance company will aid you in this process saving you time and the hassle. So all you have to do is bring the proper documents and insured unit to the authorized repair shop and that's it.

To know what to do when you get into an accident and the proper documents needed to claim from your insurance. Watch out for next weeks post!



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