What is third party insurance?
In France, any owner of a vehicle in circulation must have at least civil liability insurance (required by Article L211-4 of the Insurance Code). Beyond the legal provisions, several coverage options are available to you. Third party insurance is the entry level guarantee level. Mainly including civil liability coverage, this type of contract provides basic risk coverage in the event of an accident. What exactly does third-party auto insurance cover? Under what circumstances can this level of guarantee be attractive? When to subscribe? We bring you answers.
Definition of third party auto insurance
When to take out third-party insurance?
How to take out third party insurance for your car?
third party insurance
Definition of third party auto insurance
Third party insurance provides the legal minimum of coverage
Third-party auto insurance offers the legal minimum level of coverage imposed by the Insurance Code, even if the vehicle does not travel much or remains parked. It includes, at a minimum, the driver's liability cover. This guarantee makes it possible to repair damage caused to others by their vehicle during an event (road accident, fire, etc.), whether it is bodily injury or material damage.
What is the difference between third party insurance and all risks?
Unlike more comprehensive auto insurance contracts, third party insurance therefore does not take into account the damage you suffer if you are responsible for the accident. It also does not reimburse costs related to damage caused by natural disasters, fires and theft, unless these specific guarantees have been added to your insurance contract.
Third party insurance is the cheapest solution, but also the least comprehensive. However, it may be of interest in certain specific cases.
When to take out third-party insurance?
An advantageous solution for low value vehicles
Owners of low value vehicles that have been in service for more than ten years may consider purchasing a third party insurance contract. Indeed, the value of a vehicle drops drastically over time. In this case, it is often unnecessary to opt for comprehensive insurance. In the event of an accident, it is likely that the amount of compensation for the vehicle will not be advantageous compared to the amount of premiums or contributions in your contract. And with the savings, you can add guarantees or options to your contract.
To reduce the expense when the insurance premium is too high.
Thus, young drivers or sick motorists, who have to pay an annual insurance premium higher than the average often tend to take out third-party insurance to reduce the expense.
The question to ask when making this choice concerns both the value of the vehicle compared to the amount of the premium or contribution, and the ability to re-equip in the event of destruction of this vehicle. Read our article: when to transfer your car insurance to a third party?
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