Comprehensive Vs Third Party Car Insurance

When it comes to buying car insurance, there are many factors that you must consider. One of the crucial factors is the type of coverage you want. In India, most insurers offer two types of car insurance policies – third-party policy and comprehensive policy. A lot of people tend to get confused between the two, and often use the terms interchangeably. However, the truth is both the policies are different. Read on to know more about the differences:

What is Comprehensive Car Insurance?

A comprehensive car insurance plan is a type of policy that provides complete protection against third-party liabilities as well as damages to your vehicle due to an accident. Also, comprehensive insurance policy protects against damages to the car due to natural and man-made calamities such as burglary, theft, fire, flood, and earthquake.

You can enhance the coverage of your comprehensive car insurance by purchasing Riders. The Riders are essentially the coverage options that you can purchase at an additional premium and get coverage for things that are not covered under your regular policy. There are different types or Riders such as engine protector policy, zero depreciation cover, accessories cover, etc. You can choose any cover you want to suit your specific needs.

Important Things to know About Comprehensive Car Insurance Plan

A comprehensive car policy is the highest form of protection you can get for your vehicle. It is advisable to purchase a comprehensive policy for your car, even though it is not a mandatory requirement. With a comprehensive car insurance plan, you can be assured of full financial protection against potential damages due to accidents. Some of the important components of a comprehensive plan are:

It protects against all kinds of damages that you may suffer due to an accident
·You can be assured of getting end-to-end protection for your vehicle against theft, robbery, and damages caused to your car due to natural catastrophes
It gives you the option to purchase add-on covers like zero-depreciation cover and engine protection cover to enhance the coverage
Third-party liabilities are covered that may occur in the event of an accident.

Benefits of Buying Car Insurance

The primary benefit of buying a car insurance cover is that it helps you get protection from any unfortunate damages and losses that may occur due to collision, fire, or road accidents. Thus, you can not only save on unexpected expenses but also ensure that your car is in good shape
One of the main reasons why a lot of people buy car insurance is to comply with the law and protect themselves from the losses that they may incur due to damages caused to third-party car or property as well as damages suffered to your car
Another significant benefit of buying comprehensive car insurance is that it is cost-effective. Although the premium for a comprehensive policy is higher, considering the benefits and the coverage you get, it helps you get higher savings in the long run
Car thefts can be difficult to deal with. But with comprehensive car insurance, you can get compensation for the loss

Exclusions of Comprehensive Car Insurance Policy

Any claims made in a situation where you are guilty of driving under the influence of alcohol or any other intoxicating substance will not be covered
As per the law, if you get involved in an accident while driving without having a valid driving licence, your claim won’t be covered
Any consequential damage after the accident will not be covered unless you have an add-on cover for such damages
Accidents caused due to mechanical or electrical breakdown are not covered

What is third-party car insurance?

In India, as per the Indian Motor Vehicle Act, every car owner must have third-party car insurance. Driving without a valid license is illegal, and if you are caught, you may have to pay a costly fine. Third-Party insurance is the most basic form of insurance and as the name suggests, it protects from the damages and losses caused to the third-party due to accident.

Exclusions of third-party insurance

One of the most significant drawbacks of a third-party car insurance is that it covers only the third-party liabilities damages; you will not get coverage for damages to your own car
Any damages you may cause while driving under the influence of alcohol and/or without having a valid driver’s license will not be covered under third-party liability car insurance
If the driver was underage or was driving on the wrong side of the road at the time of the accident, such claims will not be honoured
If you were using the insured vehicle for any commercial purpose, you will not get compensation for the loss

Benefits of buying third party car insurance

It is the most affordable way to get insurance cover; the third-party car insurance price is much cheaper than a comprehensive policy. Also, it helps you comply with the law and avoid paying costly fines and penalties
The main purpose of getting comprehensive car insurance cover is to get financial protection from the damages caused to third-party’s car or property. The third-party insurance will pay for the losses if you damage anyone's property.
You can easily buy third-party car insurance online, either through the website of the insurance company or from any of the insurance agent. You can also renew the policy online without any hassles.