In Australia, nearly in all states the car insurance act implies that the people having a vehicle should be applying for a cup when they are applying for the vehicle registration it is important because the owner of the vehicle is at risk of getting into various kinds of accidental situation and may cause serious risks if it gets engaged in an accident.
So for the sake of protecting others on the road, having a third party insurance can give a sufficient coverage for the third party vehicles that may get involved in an accident with the insured vehicle.
This also helps the insured person to get the claim entertained by the insurance company and it saves a lot of money for the person as he or she may not have to pay it off if the insurance is there.
The third party property damage insurance help in getting the damage covered by the insurance company and the claims are settled easily with no financial shock given to the insured person and the third party whose property has been damaged.
The reasons why this kind of insurance has been the most valued and desired kind of insurance are:
The policy that a person obtains for the third party coverage protects the damages and loss caused to the third party so they are protected and will get the proper compensation for a quick settlement procedure and without any delays.
Another advantage of this kind of insurance policy is that the person who obtains the third party insurance has nothing to worry about paying or handling the claims filed by the third party and the insurance company would handle it all.
That is why most of the legal formulations and the local law enforcement authorities encourage that the motorists should possess a compulsory third party insurance policy to avoid financial setbacks and help other get a just compensation quickly.