Third-party insurance is a type of coverage that protects you against claims made by others for damages or injuries you may cause. It is commonly required for vehicle owners, ensuring that if you are at fault in an accident, the insurance will cover the costs for the other party's damages or medical expenses. This type of insurance does not cover your own damages or injuries. In many countries, third-party insurance is a legal requirement for drivers. It helps maintain financial responsibility on the road and provides peace of mind, knowing that you are protected against potential claims from others. This coverage is often more affordable than comprehensive or collision insurance, making it a popular choice for many vehicle owners.