All you need to know about Third Party vs Comprehensive Car Insurance
Comprehensive and third-party are the two types of policies offered by Insurance companies in India. Comprehensive covers are slightly expensive as they offer wide coverage, whereas the third-party cover is cheaper and it covers only third-party damages. When it comes to choosing a car insurance scheme, several factors come into play. Deciding whether to choose a comprehensive car insurance or a standalone third-party insurance plan is a point of concern. Insurers sell both the covers i.e. comprehensive as well as standalone third-party in India. Comprehensive motor policies cover personal damages as well as third-party liabilities, while standalone third-party car insurance, however, cannot be used for own personal damages.
- What is Comprehensive Car Insurance Coverage?
A comprehensive policy offers overall protection against damages to the parties involved in an incident. It is extensive as it covers damages to car, theft, legal liability to third-party as well as personal accidents. You can always improvise the policy coverage by selecting add-ons like accessories cover, engine protector, and zero depreciation cover, medical expenses, etc. this coverage offers end-to-end coverage, ensuring less stress for the policyholder and hence it is highly popular. If you don’t have an insurance cover, you risk paying from your pocket for expensive repairs of damages following an incident. Standalone third-party insurance covers are cheaper than comprehensive car insurance in India. Although, comprehensive covers provide many benefits to the insured if you compare them to standalone third-party covers. This type of car insurance covers theft, fire, natural disasters such as a hurricane or a tornado, vandalism, falling objects, any type of damage caused to your car by animals, civil disturbances such as riots that might damage or destruct your car.
- Third-Party Car Insurance
A Third-Party Car Insurance will offer you cover against any legal liability to a third party caused when you are the one who is at fault. Any damage or injury that is caused by the insured to another property or a person will be covered. According to the Motor Vehicle Act, 1988 in India, a Third-Party cover has been made mandatory. No such specific limits have been set on the liability coverage for any kind of injuries or death of a third party.
The third party car insurance will cover any case of legal liability owing to death or injury to an individual or damage caused by the insured vehicle to any property.
- What is the Difference between the Third-Party and Comprehensive Cover?
The range of protection that is offered to you and your vehicle is the major difference between third party car insurance and comprehensive insurance. Extensive coverage will be provided to you and your vehicle by a comprehensive plan while a third-party cover will have its limits, it will only offer protection against the claims of a third-party. The strengths, as well as the weaknesses of both these types of car insurance, will depend on several underlying factors. Understanding these variables is very necessary for a better understanding for comparing, analyzing and deciding upon the right car insurance. Calculate your quotes using an online car insurance premium calculator.
If we compare car insurance, below are certain points you must keep in mind:
- Choose your insurance depending on the value of the car. If your car value is low, opt for third-party motor insurance because all the repairs to damages caused are cost-efficient and easy to manage. The repairs will be cheaper to pay if you compare it to the high premiums that are associated with comprehensive cover. In case your car is newly bought and expensive, go for the comprehensive cover option.
- Third-Party insurance will cover damages to the third-party vehicle, any injuries caused to other people in an incident or third party property damage. This coverage has become important now, as the cost of repairing damages is high.
- Which insurance is better for you?
If the coverage is yourself and your vehicle, comprehensive car insurance will be a better option for you. It has provisions for a third-party as well and has a wider coverage plan.