It is not easy to shop for car insurance. One of the things that makes it so difficult is the unique terminology that is used by the industry. One very important term that you need to be acquainted with is the term third party car insurance. In some areas you may hear this referred to as liability insurance. The reason this term is so important is because most places in the world require that car owners maintain some level of third party insurance. What this means is that you are required to own an insurance policy that covers you for damage caused by your car to property owned to someone else.
In the insurance industry the term third party refers to a person other than you that has been damaged. You are considered to be the first party and the company that provides the insurance is the second party. Consequently, the industry refers to insurance that protects the individual who is damaged by your vehicle as third party car insurance.
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