Third-party insurance is a type of insurance that covers the policyholder against any legal liability towards a third party for damages caused by the policyholder's vehicle. Other synonyms for third-party insurance include liability insurance, third-party liability insurance, and car insurance. Liability insurance is the most commonly used term, as it not only covers damages to third parties but also includes legal fees for defending oneself in a court of law. Third-party liability insurance and car insurance are also widely used synonyms, with car insurance additionally covering damages to one's own vehicle. Overall, these synonyms refer to the same type of insurance that provides coverage for damages caused to third parties.