In the case of your car being financed or leased, the finance company will expect you to have coverage. If your vehicle is new or in excellent condition, you would have to have cover to replace or repair the vehicle. Third-party insurance would cover the insured person against claims made by a third party. When you’re involved in a motor vehicle collision, and you are at fault, you’ll not only have to contend with your own car’s damage, but will also be liable for the damage to the other vehicle and any injuries sustained by those travelling in the car. This liability is covered by all-risk insurance. So if you choose all-risk coverage, you cover yourself as well as the third party.