Claims · Motor insurance
What does “third party” mean when you claim?
In a third party insurance claim, the third party is anyone outside the contract between you and your insurer: usually the other driver, or the owner of the wall or car you hit. Here’s what the term means in practice, who pays when you cause the damage, what you can do when someone else does, and where the Road Accident Fund fits in.
Third party claim meaning: first, second and third parties
A third party is a person who isn’t part of your insurance contract but is affected by something you, or your car, did. Your policy is an agreement between two parties, you and your insurer. Everyone else is a third party.
That has an important consequence for the person on the receiving end. As one firm of attorneys puts it, “Three people feature in every such claim: the insurer, the insured (the driver who bought the policy), and the third party (you, whose property was damaged). The policy promises to indemnify the insured… It promises you nothing” (Bregman Moodley Attorneys (2026)). The other driver’s insurance protects the other driver; it doesn’t give you a right to claim from their insurer.
| Party | Who it is | In the picture above |
|---|---|---|
| First party | The policyholder (and drivers covered by the policy) | The driver who reversed into the wall |
| Second party | The insurer that issued the policy | The driver’s insurer |
| Third party | Anyone else whose property is damaged or who is injured | The neighbour who owns the wall |
Which way round you are decides what you do next, starting with the level of cover on your car.
Third-party-only, third party fire and theft, and comprehensive cover
Every level of car insurance includes some third-party cover; they differ in what they pay for your own car. Third-party insurance is “cover a driver buys to protect themselves against claims brought by other people, and it is not compulsory in South Africa” (Bregman Moodley Attorneys (2026)).
| Third-party-only | Third party, fire and theft | Comprehensive | |
|---|---|---|---|
| Damage you cause to other people’s property | Commonly yes, up to the limit | Commonly yes, up to the limit | Commonly yes, up to the limit |
| Your car stolen or burnt | No | Commonly yes | Commonly yes |
| Accident damage to your own car | No | No | Commonly yes |
| Hail and weather damage to your car | No | Not automatically | Commonly yes |
| Typical cost | Lowest | Middle | Highest |
The exact cover and the third-party limit are set out in your policy schedule, which our guide to reading your schedule explains. For how motor cover fits into the wider picture, see the types of short-term insurance.
When you cause damage to a third party
If you damage someone else’s car, wall or gate, your duty is to stop, exchange details, report it, and let your insurer deal with the third party’s claim. Section 61 of the National Road Traffic Act requires a driver involved in an accident where anyone “suffers damage in respect of any property” to “immediately stop the vehicle”, check the damage and, if asked, give their name and address, the owner’s name and address and the vehicle’s registration (National Road Traffic Act 93 of 1996, s61).
1. Stop and make the scene safe
Check whether anyone is hurt before you look at the damage. Driving off counts as a hit and run, which Arrive Alive notes “is a criminal offence, even if nobody is killed or seriously injured” (Arrive Alive).
2. Exchange details and take photos
Give your details, take the other person’s, and photograph the damage, the scene and the registration numbers. Our checklist on what to do after a car accident lists what to record.
3. Don’t admit fault or offer to pay
It’s natural to apologise, but Arrive Alive’s advice is “don’t admit you were to blame”, adding that “most insurers prohibit statements of admission, offer, promise, payment or indemnity”. Agreeing to pay the neighbour yourself can put your insurer’s cover at risk.
4. Report it to the police
Arrive Alive notes that “it is an offence not to report an accident in which another person’s property has been damaged”, and advises reporting it at a police station or traffic office within 24 hours, with your driving licence.
5. Tell your insurer and pass on the third party’s claim
Notify your insurer or broker straight away and give the third party your insurer’s claim reference. From there, your insurer normally deals with the third party’s claim on your behalf, within your third-party limit.
If the insurer rejects your claim, the third party isn’t covered either. The NFO warned in a drunk-driving case that “the financial implications of a rejected accident claim are not just limited to the insured’s own vehicle damage but extend to the damage caused to a third party” (NFO, November 2025). The third party could then claim from you personally.
The other side of the picture is what happens when you’re the one whose property is damaged.
When a third party damages your car or property
When someone else damages your car, you have two routes: claim from your own comprehensive insurer, or claim from the at-fault driver directly. Many people use both, in that order.
Route 1: claim from your own insurer
If you have comprehensive cover, your own insurer pays for the repairs and then tries to recover its costs from the driver who caused the accident. You’ll still pay the excess: the NFO reminds motorists that “you must pay the excess amount, regardless of who was at fault or who caused the accident” (NFO). SAIA’s code notes that policyholders “may be required to cede their rights to the insurer for recovery from the third party” after settlement (SAIA Code of Conduct (2025)), which is how your insurer steps into your shoes. Ask your insurer or broker whether it will also try to recover your excess. Our guides to the car insurance excess and how to claim on car insurance cover the rest of the process.
Route 2: claim from the driver who caused it
If you have no cover, only third-party cover, or want your excess back, your claim is against the driver, not their insurer. The steps the attorneys set out are to collect quotes and photos, then “send a written letter of demand to the driver, copied to the insurer, attaching the quotes and photographs and giving a deadline, usually 14 days” (Bregman Moodley Attorneys (2026)).
If the driver doesn’t pay, smaller claims can go to the Small Claims Court, where you don’t need a lawyer. Its limit rose “from R20 000 to R30 000, with effect from 1 August 2026” (Department of Justice (2026)), and the Department lists damage from a motor vehicle accident as an example of a claim it can hear (Department of Justice, Small Claims Courts). Larger claims go to the Magistrate’s Court.
One option isn’t open to you: as a third party, you generally can’t take a complaint about someone else’s insurer to the National Financial Ombud. The NFO’s scheme rules exclude “a person who is claiming for damages against another person’s policy, commonly referred to as a third-party claimant” (NFO Scheme Rules (2024)). The ombud is for disputes with your own insurer, as our guide to rejected claims and the NFO explains.
The risk of meeting an uninsured driver is real: the AA has reported a SAIA estimate that “about 65% of South African motorists are not insured” (AA of South Africa (2023)). That’s the strongest argument for having your own cover rather than relying on the other driver’s.
Third party claims and the Road Accident Fund
The Road Accident Fund handles third-party claims for injury and death, never for damage to cars or property. The RAF exists “to provide cover to all persons (referred to in the Act as a ‘third party’) for loss or damage resulting from the death or bodily injury caused by the negligent driving of motor vehicles” (Road Accident Fund). Its own leaflet is blunt: “Property damage cannot be claimed from the Fund. It may be claimed from the offending driver” (RAF leaflet).
So the word “third party” is doing two different jobs. In a RAF claim, the third party is the person injured, or the family of someone killed. In a motor insurance claim, the third party is anyone whose property you damage, and payment comes from your insurer or from you. When people search for “third party claims” they often mean the RAF; when an insurer or broker uses the term, they usually mean property damage. If you’re heading across the border, our guide to driving to Mozambique covers the compulsory third-party cover required there.
Quick check: who pays?
Four scenarios. Pick an answer for each and check your score.
Third party claim FAQs
General answers about third-party claims in South Africa.
What does third party mean in insurance?
A third party is anyone who isn’t part of the insurance contract. The first party is the policyholder and the second party is the insurer. In a motor claim, the third party is usually the other driver, a pedestrian, or the owner of property you damaged.
What is a third party claim?
A third party claim is a claim by someone outside your policy for damage or injury you caused them. If you damage another person’s car or wall, their claim against you is a third-party claim, which the third-party liability section of your motor policy may pay, up to its limit.
Can I claim from the other driver’s insurance?
Your legal claim is against the driver who caused the damage, not their insurer, because their policy is a contract between them and their insurer. In practice the driver usually passes your claim to their insurer, and a letter of demand is often copied to the insurer.
What happens if an uninsured driver hits my car?
If you have comprehensive cover, you can claim from your own insurer and pay the excess, and your insurer may try to recover its costs from the driver. You can also claim from the driver directly with a letter of demand and, if needed, the Small Claims Court for claims up to R30 000 from 1 August 2026.
Do I pay the excess if the accident wasn’t my fault?
Usually yes. The NFO says that in a motor claim you must pay the excess regardless of who was at fault. You can try to recover it from the driver who caused the accident, or ask your insurer whether it will include the excess in its recovery.
Does the Road Accident Fund pay for damage to my car?
No. The RAF only covers claims for death and bodily injury caused by negligent driving. Damage to vehicles, buildings and other property has to be claimed from the driver who caused it, or from your own insurer.
Should I admit fault at the scene of an accident?
No. Arrive Alive advises drivers not to admit blame or offer payment at the scene, and notes that most insurers prohibit statements of admission, offer, promise, payment or indemnity. Stop, exchange details, take photos and report the accident.
How long do I have to claim from the driver who damaged my car?
A claim for damage to your car normally prescribes three years after you know who is responsible and the facts you need to sue on. Waiting while an insurer considers the claim doesn’t stop the clock.
Dealing with a third-party claim?
Whether you caused the damage or someone else did, Best Care can help you understand where your policy fits and what your insurer will need. We can also review your motor cover and third-party limit. Cover and claims remain subject to each insurer’s assessment and the policy wording.
This article is general education, not personal financial or legal advice. For a legal claim against another driver, consider advice from an attorney. Legal rules are summarised from the National Road Traffic Act, the Road Accident Fund’s published material, the Department of Justice and the NFO Scheme Rules, as checked in November 2026. Best Care Insurance Brokers CC, registration 1992/100995/23, Authorised FSP 8754. See the FAIS disclosure.