Insurance Glossary

Third-party

Last reviewed 25 July 2026 · by the Savvy Insurance editorial team

What is third-party?

A third party is any person other than you (the first party) and your insurer (the second party). Third-party liability cover pays for damage or injury you cause to these other people or their property.

Example

If you reverse into another car, the other driver is the third party, and your liability cover responds to their repair costs.

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