What is third party liability car insurance?

Third-party liability is a vital consideration in any mode of business. When you buy a third party car insurance you are in a kind of relationship with that particular car insurance company. In this process you are the ‘first party’, the insurer is the ‘second party’ and the ‘third party’ is someone who has no direct connection with this Third-party liability car insurance policy but could be affected by it. In case you face a forfeit against you from the third party, your Third-party liability car insurance policy will pay the amount on your behalf. This payment can consist of medical costs, lost earnings, and repair of the damaged property. So it means this amount can be problematic for you if you don’t have the right kind of third-party liability car insurance.