Video: Defining Third Party Insurance

Defining Third Party Insurance

Third party insurance places an emphasis on the meaning of the word liability. Define third party insurance with help from a longtime member of the professional banking and insurance industries in this free video clip.

Video Transcript

Hi, my name is Emmanuel Osuyah. I am principle at the Promise Insurance Group and I'm a certified insurance counselor. Let's talk about third party insurance. Every time you hear the word, third party insurance or you hear the word liability, I want you to start to think about them as synonymous with each other. In some countries, the full term is third party liability insurance. If I hit somebody else's car or if I hit your car, I become liable for that. You are third party to me and so I become responsible for fixing your car because I am liable. Contrast that with first party where we both get involved in an accident but because I have full coverage on my car insurance, my insurance company goes ahead and repairs my car, that's considered first party because I am fixing my own car but they can turn around and do what is called subrogation and come after your company if you are found to be at fault at that accident. I am Emmanuel Osuyah, and I thank you for watching.

Defining Third Party Insurance

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