Definition: The "Insurance 3 Year Rule" in legal jargon refers to a specific type of insurance policy that provides protection against certain types of losses for a period of three years following the occurrence of an event, eventuality or circumstance. In plain English, this phrase suggests that if someone suffers an injury or damages property due to something they did not plan on doing at the time (i.e. "an eventuality"), there is an insurance policy in place covering those losses for a period of three years following the occurrence of the eventuality. The 3-year rule applies when you are covered by a comprehensive car insurance policy and if the policy provides coverage for injuries or damages to your vehicle, property or any third party involved. It ensures that the claim is handled fairly during the first 12 months of the policy term (or until the end of the three-year period). If the policy does not provide such coverage, you will need to consider other means of protection. It's important to understand that this rule can vary by state and insurance provider, so it's always a good idea to consult with a professional or seek advice from your own insurer.

insurance 3 year rule