Third Party Liability

UK law attempts to protect the public and other road users by making it a legal requirement to be insured for third party liability. All car insurance policies must satisfy this legal requirement, which covers both other people and their property against damage or destruction caused by your vehicle.

Your Liability as the Car Owner
In the event of an accident that was caused by your car, or any trailer or caravan towed by your car, your insurance will refund all amounts that you may have to pay in respect of:

• a person's death or injury
• damage to their property (up to a certain limit, often £20,000,000)
• their reasonable legal expenses incurred in the attempt to gain compensation

You will need to gain written permission from your insurer before you agree to pay any costs. In addition, a fully comprehensive policy may include an 'any car' extension to this cover. This would allow you to enjoy third-party liability cover while driving any other car that you drove with the owner's consent. The car should not belong to you, be leased by you under a hire-purchase agreement or have been seized by a government or public authority.

Liability of Other People Driving or Using Your Car
Other people are also insured on the same basis described above, when you have named them on your certificate of insurance and they drive the car with your permission. Some fully comprehensive insurance policies will entitle you to drive someone else's car with third party cover, but this is not always the case: be sure to check with your insurer.

Legal Costs
In addition to the actual pay-out for injury or damage to third parties or their property, your insurer will also pay for some of the legal costs you may incur as a result of an incident while driving. The legal costs covered may, for example, include solicitor's fees incurred at a fatal accident inquiry. The legal fees covered must be 'reasonable' and expenses must be agreed beforehand with your insurer and solicitor. If you want additional protection of this kind, you may wish to consider Motor Legal Protection.