Why do I need third party insurance? Third party insurance is mandatory and regulated by law. It covers damage costs caused by you and your vehicle (damage not only to people and objects, but also salary compensation due to resulting injuries). Damage to your own vehicle and damage caused by illegal driving (i.e. without a license) is not covered by third party insurance. The insurer may forgo shortening coverage for accidents caused by gross negligence if this is already included in his/her insurance policy. If not, separate insurance for such cases must be taken out. Third party insurance providers all offer practically identical coverage. This is why it is often worth taking a close look at offered premiums and at comparis.ch bonus system evaluation results. What does Retention 1000/500/0 mean? Compulsory retention for young drivers (under 25 years of age) is CHF 1,000.-- Compulsory retention for new drivers (25 or older, licensed for less than two years) is CHF 500.-- Compulsory retention for all other drivers is CHF 0.-- Each accident is subject to retention. The driver's age at the time of the accident determines which retention category he/she belongs to for that damage.