When you have first party coverage, both you and your property are covered, so any damages to your car, medical expenses, et cetera, should be taken care of by your insurance company. Thus, if you get sued because of a car accident, your company is bound to defend you.

Third party coverage, then, will actually take the responsibility of paying for anyone else’s damages or injuries if you happen to be responsible for an accident, partly or totally.

As with any other type of coverage, you want to shop around for this coverage. Because accidents do happen, however, it is always worth it to have some type of coverage of this kind, whether it is first party or third party.