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, where it covers damages to another person's property or medical expenses resulting from an accident you caused. This insurance does not cover your own damages or injuries. In many countries, having third-party insurance is a legal requirement for driving. It helps ensure that victims of accidents can receive compensation without placing a financial burden on the at-fault driver. This type of insurance is often more affordable than comprehensive coverage, making it a popular choice for many drivers.