If you’re shopping for car insurance you may be confused by all of the options and companies available. You’re certainly not alone. The terminology and knowing where to find the proper coverage can be very confusing.  For example, what is third party car insurance? Third party car insurance is also known as liability insurance. Having third party car insurance simply means you are selecting coverage for parties other than yourself that may suffer damage due to your vehicle.

So why do you need third party car insurance? While comprehensive coverage protects nearly any kind of damage, third party coverage only covers damaged property. This means that third party car insurance is considerably cheaper than full comprehensive coverage. Before you purchase a policy is important that you understand what you’re paying for. In nearly every state in the USA, drivers are required by law to have basic liability or third party insurance coverage. However, if your vehicle is financed the finance company can require that you carry full comprehensive coverage as well as third-party. This ensures that if you have an accident, the finance company can recover what is owed to them.

Now that you know what third party car insurance is, how do you find the right insurance company and the best price? Nearly every major auto insurance provider has third party coverage policies available. The best way to make sure you’re getting the best deal is to shop and compare. Progressive, Geico, State Farm, Allstate and many others have information available on their websites as well as online calculators and the ability to purchase online. You can also use insurance portal sites like Esurance that allow you to compare multiple quotes in one location. In addition, you’ll find lots of information available about the types of coverage to help you determine which coverage is best for you. If searching online is confusing to you, you can still find coverage by calling an insurance agent. Of course, this is more time-consuming but is the best option for those that are not Internet savvy.

Whether you purchase your third party car insurance online or through an insurance agent, be sure to shop around to make sure you’re getting the best deal. More importantly, you want to select a car insurance company that will deliver should you ever have an accident or claim. Choosing a cheap unknown carrier for your policy could be disastrous.  Insurance companies are regulated at the state level. So if you have any concerns about whether your auto policy carrier is legitimate, check with your local attorney general’s office.