Third-party liability insurance for your car: what is covered?
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AT A GLANCE
You overlook another vehicle on a roundabout and this leads to an accident. As a driver, you have unlimited liability for damage you cause to others, so an incident like this is both annoying and expensive. We explain what your third-party liability insurance covers and what it does not.
What is third-party liability insurance for cars?
Third-party liability insurance is a form of car insurance that is mandatory for every registered vehicle in Switzerland. It pays the costs of damage and injury that you cause to others with your car, not damage to your own vehicle.
Requirements for vehicle registration
Without third-party liability insurance, the traffic licensing authority will not give you your licence plates. The Road Traffic Act stipulates a minimum sum insured of CHF 5 million. The insurance covers the vehicle itself, not the person driving it.
Who does third-party liability insurance for cars cover?
The insurance covers the owner and everyone who drives the car with the owner’s knowledge. For example, if your neighbour borrows your car and causes an accident, they are also insured via your third-party liability policy.
GOOD TO KNOW
You do not need a separate policy for trailers. Damage caused by a trailer you are towing or pushing is automatically covered by your car’s third-party liability insurance.
What it includes: the benefits of third-party liability insurance
Third-party liability insurance covers damage and injury that you cause to others with your car. Here is an overview of the most important benefits:
Personal injury and property damage to third parties
If you injure or kill another person with your car, your third-party liability insurance will pay the resulting costs. This also applies to passengers in your vehicle. If you damage or destroy third-party property, such as another vehicle or a fence, your insurance will cover this as well. That includes lawyers’ fees and court costs, interest and the injured person’s lost earnings.
GOOD TO KNOW
If you injure yourself in an accident for which you are responsible, a separate accident insurance policy will cover the medical expenses.
Defence against unjustified claims
If a neighbour falsely alleges that you damaged her garden fence, for example, we will review the case and defend you against the claim. You will not have to pay any additional costs for your legal defence.
Damage to family members’ property also covered
Supplementary insurance for first-party losses also covers damage to family members’ property, regardless of whether they live in the same household as you.
A PRACTICAL EXAMPLE
While reversing out of the driveway, you accidentally scrape your daughter’s motorbike. If you do not have additional cover, you will have to pay the repair costs, as standard third-party liability insurance does not cover damage/injury to family members. With additional insurance for first-party losses, your third-party liability policy will cover the repair costs.
Third-party liability insurance for cars – exclusions and typical coverage gaps
Just as important as the benefits – what third-party liability insurance does not pay for. Here are the most common coverage gaps:
Damage to your own vehicle
To cover damage to your own car, you need to take out partially or fully comprehensive insurance. For scratches and dents on a parked car caused by an unknown person, there is parked-vehicle insurance. The best way to cover your own property carried in the vehicle, such as cameras and laptops, is via your household contents insurance.
What happens in the event of gross negligence?
If you cause an accident through gross negligence, e.g. because you were using your phone at the wheel, your third-party liability insurance will pay for the loss initially. Ultimately, however, part of the costs will be reclaimed from you. To protect yourself against this, you can supplement your third-party liability insurance with gross negligence cover. Accidents that occur while you are under the influence of alcohol or drugs are always excluded.
Why is third-party liability insurance so important for cars?
Without third-party liability insurance, you are personally liable for all damage and injury you cause with your vehicle. The costs of personal injury can quickly run into the hundreds of thousands, sometimes even millions of francs. Imagine that you brake too late at a red light and injure a pedestrian. The costs of medical treatment, lost earnings and even, potentially, a disability pension will quickly add up. Third-party liability insurance pays these follow-up costs, protecting you from financial ruin.
How much does third-party liability insurance cost?
In Switzerland, the premium depends on several individual factors. For that reason, it is impossible to give a general price estimate. The premium is influenced by your vehicle type, where you live, your mileage, the deductible you choose and your bonus level. At Allianz Suisse, you have a flexible choice of deductible. The higher the deductible, the lower your premium will be.
Third-party liability insurance for my car – what do I need to consider?
Having the right third-party liability cover means you avoid nasty surprises in the event of a claim.
- Familiarise yourself with the coverage gaps: without comprehensive insurance, you will pay for damage to your car yourself.
- Check whether you have gross negligence cover, especially if you do a lot of driving.
- Make sure you understand the bonus/penalty system – claims will affect your premium in subsequent years. With no-claims bonus protection, you can prevent a claim from negatively impacting your bonus level.
- Fully comprehensive insurance is usually worth having for new vehicles. Once a number of years have passed, partially comprehensive cover is often sufficient.
Third-party liability insurance for your car from Allianz
What our third-party liability insurance for cars specifically covers and what sets it apart from other policies:
- You have a flexible choice of deductible, in line with your personal security needs.
- Supplementary insurance for first-party losses also covers damage to family members’ property, regardless of whether they live in the same household as you.
- If third parties make unjustified claims, we will defend you against them at no additional cost to you.
- Gross negligence cover protects you against recourse claims – for instance, when you cause an accident while distracted by your phone.
Frequently asked questions and answers
Yes. For insurance purposes, passengers are regarded as third parties, even if they are in your car. If you cause an accident and your passenger is injured, your third-party liability insurance will cover the medical expenses, lost earnings and other follow-up costs. This applies regardless of whether the passenger is a family member, a friend or a colleague.
Yes and no – it depends on the situation. If you damage someone else’s vehicle while reversing out of a parking space, your third-party liability insurance will pay for the damage to the other car. However, if your own parked car is damaged by an unknown person, your third-party liability insurance will not step in. In this situation, you need parked-vehicle damage cover, which you can take out as an add-on to your partially or fully comprehensive insurance.
Gross negligence can be expensive. Although your third-party liability insurance will pay the loss in full up front, it will then recoup part of the costs from you. Except where you were under the influence of alcohol or drugs, gross negligence cover prevents this from happening.
The Road Traffic Act stipulates a minimum sum insured of CHF 5 million for third-party liability insurance. This sum is for personal injury and property damage per incident and is intended to ensure that sufficient cover is available even in the event of major accidents involving multiple injured parties. If particularly high cover is required, the sum insured can be increased individually.
Yes, your insurance policy will usually include a deductible. With us, you have a flexible choice of deductible and can adapt it to your personal security needs. A higher deductible generally lowers your premium, but it also means higher costs out of your own pocket in the event of a claim. Our advisors can help you to find the right amount.
Third-party liability insurance covers other people. It pays for damage and injury that you cause to third parties with your car and is compulsory in Switzerland. Comprehensive insurance, on the other hand, covers your own car – for instance against theft, hail damage or an accident for which you are at fault – and is optional. To enjoy comprehensive cover, many owners combine both types of policies.
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