Definition: Motor third-party insurance or third-party liability cover, which is sometimes also referred to as the 'act only' cover, is a statutory requirement under the Motor Vehicles Act. It is referred to as a 'third-party' cover since the beneficiary of the policy is someone other than the two parties involved in the contract (the car owner and the insurance company). The policy does not provide any benefit to the insured. However, it covers the insured's legal liability for death/disability of third-party loss or damage to the third-party property.

If you own a car, car insurance is a required expense in 48 of the 50 states. A lack of diligence when shopping for your car insurance could lead to a hefty monthly bill, as well as headaches if you actually need to file a claim. We researched and explored quotes from over 128 companies in 2,700 cities to determine which insurers had the lowest costs, nationally and in each state. Our team also evaluated which companies had the best track record for customer service and the claims process.
When you purchase comprehensive coverage, you will select a set deductible, which is the amount you pay out of pocket toward a covered claim. Let's say you choose a $500 deductible, and your car is later damaged by hail in a covered claim. If it costs $1,500 to repair your car, you would pay your $500 deductible, and your insurance would pay the remaining $1,000.
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