A third party refers to an individual who is driving a vehicle that has been loaned to him or her by the owner. Under most personal injury and personal property coverage, injuries to a person or property caused by a third party driver is covered. There are some things, however, that must be considered. First, regardless of the driver, the insurance will still only cover up to the limits written into the policy. The insured driver of the automobile would become personally liable for any injuries or damages as a result of judgments above these limits. Second, accidents caused by third parties still count against the insured driver's record. It is important to note that this type of situation can put you in a higher risk category with your insurance company and that can often increase the cost of your coverage at renewal time. Since there are several exceptions to the coverage of third parties, be sure to read your policy carefully so you understand what is covered. To better understand third party coverage, consult an insurance professional in your area.
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