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Everything you need to know about third party liability insurance

Everything you need to know about third party liability insurance: Third party liability insurance in our country is something that you must have when you own a car. However, this necessity is not a bad thing – in itself it is one of the basic safeguards in the event of accidents, collisions or other such road incidents. This insurance transfers the responsibility for the payment of compensation after a collision (resulting from our fault) from us to the insurer . In this guide, we explain exactly how it works, the obligation to buy it, the consequences of not having it, and many other aspects closely related to it.

What are third party liability insurance and how do they protect us?

As we mentioned in the introduction, third party liability insurance is the only and obligatory form of protection against possible collisions, accidents and other types of road incidents for owners of motor vehicles. Not only car owners are obliged to buy it, but also truck, motorcycle, agricultural machinery and everything that is on the road. In a word: anyone who registers their own vehicle with the appropriate authority. This type of insurance must be purchased on the day the car is registered at the latest – if we do not do it, we will have to take into account the consequences (we define them later in this article).

The way the third party liability insurance works is simple to understand: if we cause a collision or a road accident, we will not have to pay for its consequences out of our own pocket. Regardless of whether it will only lead to the destruction of the second vehicle, or damage to the health of the person driving it. The insurance does not cover the cost of repairing our own car – it is possible thanks to voluntary AC (Auto Casco).

When will the insurer fail to pay civil liability insurance?

There are times when the insurer will not pay you compensation, even if you have third party liability insurance. However, this happens in exceptional situations, which may include causing losses related to contamination or pollution of the environment, loss of cash, jewelry and other valuable things or cargo that were transported in the injured car for a fee (unless the driver is not responsible for them ). This also happens when we damage our own while driving someone’s vehicle. There are also situations where the insurer will pay the victim compensation, but will have the right to demand a refund from us . This happens when:

  • the accident was deliberately caused and it will be proved to us in some way (for example by the account of our fellow passenger),
  • we will run away from the scene – if we do not wait for the arrival of the police, but also do not provide assistance to the victim (when he or she requires it);
  • during the accident, we will be under the influence of stimulants , including alcohol, drugs or other types of intoxicants,
  • we will not have the right to drive the vehicle in question – regardless of whether it is due to their temporary suspension by the police (a taken driving license) or simply not acquiring them at an earlier date.

What can we face in the absence of third party liability insurance?

Lack of third party liability insurance can be disastrous for us. First of all, due to the fact that it is obligatory, it will force us to pay the penalty – its amount depends on the period during which we do not have a valid policy (the thresholds are up to 3 days, up to 14 days and over 14 days, and the fees are depends on the type of vehicle) and usually exceeds the cost of the annual premium. However, this is only the tip of the iceberg.

The real problems arising from not having third party liability insurance arise when we cause an accident or collision. Then we will also have to bear all the costs incurred as a result of it. This may be the cost of towing and repairing the injured car, but also compensation for any losses, including health losses. The whole thing can go into hundreds of thousands, whether it is if we find a person who will be able to use it, or if we actually cause huge losses. In general, it can be said that it is not profitable not to have a policy – whether due to penalties or the consequences that may befall us in the event of not entirely desirable road incidents.

Looking at it from the other hand: if the accident is caused by another person who does not have third party liability insurance, and the losses are incurred by us, the compensation (up to a certain level) will be paid by the Insurance Guarantee Fund.


Compulsory third-party liability insurance should not be the only reason that we should become interested in purchasing it. There are many benefits to having it, and although you may not have to reach for most of them every day (and preferably throughout your life), it is worth having such an opportunity. Although it can cost money by itself, we choose the insurer that will offer us the most attractive terms. Let’s search, compare and choose as soon as we make a decision to buy a car.