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Can I take out my car insurance in the name of a third party?
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Is your budget tight to take out full insurance coverage? Follow this article and understand why having insurance for third parties is something worth investing in, even with a fair budget.

Having car insurance is currently essential. However, we know that this is a high-cost service in some situations.


In these cases, it is not advisable not to take out insurance, but rather to opt for a leaner policy, without as many benefits.

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It is important to make it clear that third party insurance is not coverage that should be removed from your policy, in fact, this is one of the most important coverages.

Follow this article and discover why having third-party insurance can make all the difference in your safety.

Don't have money for full insurance?  Take out insurance for third parties!

Image: Getty


What is third party insurance?

Also known by the acronym RCF-V, which means Optional Civil Liability for Vehicles, this insurance is a guarantee that, if a collision or any type of traffic accident occurs, which causes physical or material damage to another person, the injured person will be duly compensated without the insured having to pay large amounts.

A good example that can be given is: you hit another car, and the damage was extensive, if you have third-party insurance, simply contact the insurance company, and the company will assume all necessary costs.

This coverage also applies if the injured driver decides to take legal action against you. The insurance, in addition to covering all legal costs, will pay compensation if you are ordered to cover this amount.

How does third party insurance work?

Insurance coverage for third parties has a fixed maximum value, which is defined by the insured and agreed upon when contracting the service.


Within this maximum value, the insurance may cover all third-party losses.

In other words, assuming that you have taken out third-party insurance worth R$100,000. And if you hit the back of a car, where the repair cost is R$15,000, the insurance will cover it.

In the same collision, was the other driver injured and needed medical help? The medical costs were R$5,000?

No problem, the insurance will pay the claimant's medical costs.


If even so, the other driver decides to take legal action against you, for moral damages, and you are sentenced to pay compensation of R$50,000, expenses of R$70,000 will have already been added, which is still within the maximum of R$ $100,000, so insurance will also cover this compensation.

To claim insurance in these cases, the insured does not need to pay a deductible.

Therefore, at the end of this case cited as an example, the insured will have saved R$70,000. And you will also have R$30,000 at your disposal for future cases.

What does third party insurance cover?

The damages covered by third-party insurance are generally:


Materials damage: the insurance covers material losses caused to third parties, such as bodywork, painting and tire repair costs, caused by a collision where the insured is at fault, or even if he destroys the facade of a business or house.

Bodily or personal injury: the insurance will be responsible for paying for the reimbursement of expenses incurred by a third party who suffers physical damage, death or disability. Or even hospital costs caused by the car accident.

Moral damages: coverage guarantees possible compensation, whether judicial or extrajudicial, that the insured will be ordered to pay, in the event of permanent aesthetic or moral damage.

Advantages of insurance for third parties

There are many advantages of being able to count on insurance for third parties, among them we can mention 10, which will definitely make you understand how important this coverage is in a policy. See what they are:

  1. Coverage for material damage;
  2. Coverage for physical damage to third parties;
  3. Coverage for moral damages;
  4. There is no deductible charge;
  5. Category-specific bonus class upon policy renewal;
  6. In some insurers, this coverage does not have a risk profile;
  7. In most insurance companies, the value of this coverage is very affordable;
  8. This coverage has a wide range of vehicle types;
  9. It is not necessary to carry out a prior inspection for hiring and;
  10. It also offers 24-hour assistance in most companies.

Discover 5 reasons why having third party insurance is a good choice

Coverage for third parties is generally part of comprehensive insurance, however, it can also be contracted individually.

This means that, if your budget is tight and you can only afford simpler coverage, against robbery or theft, for example, you can take out third-party insurance separately.

But, if you're still not sure what a good deal it is to take out this coverage. See below the five main reasons why having third party insurance is a good choice.

  1. Protection for third parties

This coverage is only responsible for covering third-party losses if it is proven that the insured driver is at fault for the vehicle accident, whatever it may be.

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In other words, if the victim suffers any loss due to damage to their car, hospital costs or even permanent injuries.

The insurer is responsible for paying all these costs and not the insured person.


It is worth noting that, if the insured party was harmed, they must contact the insurance company to repair their vehicle and, subsequently, it is proven that the other driver is to blame for the accident.

The insurance company may ask the person responsible for the accident to reimburse the entire amount spent. This is permitted by law, and is called subrogation, which means that the victim's rights become those of the company.

  1. The coverage is very affordable.

Don't worry about thinking that 'this coverage is really good, but it must be expensive!', because that's not true.

Third-party insurance is an exclusive service for a given situation and can be purchased alone. Therefore, its value is much lower than comprehensive coverage, for example.

  1. Right to 24-hour assistance

Even though this coverage is only available for third-party damage, it offers a 24-hour assistance service. where the insured can count on services such as locksmith, tow truck, help for dry and electrical breakdowns and much more.

  1. This coverage has no risk profile

Taking out insurance for third parties without a risk profile is only possible for private or commercial motor vehicles, except in the case of vehicles that transport passengers, such as taxis, for example.

The biggest advantage of this coverage without a risk profile, in addition to not needing to carry out a prior inspection, and not suffering from many bureaucratic processes, is the rates that are much lower than insurance for third parties with a risk profile.


Typically carried out for bikers and truck drivers.

  1. Great acceptance of cars

Another great advantage of taking out third-party insurance is that it has a wide acceptance of vehicles. Be they older, armored or even off-road cars.

These were the main reasons and advantages that define third-party insurance as an almost mandatory item.

Can I take out my car insurance in the name of a third party?

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Can I take out my car insurance in the name of a third party?



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