Car Insurance Vs Third Party Car Insurance

Define Comprehensive Car Insurance Vs Third Party Car Insurance

Congratulations if you want to buy a car of your dream! Now that you are set to bring home a brand new car, you should also know that you will need a car insurance policy.

A car insurance policy will help you provide financial assistance in case if your vehicle gets involved in an accident and cause hurt to you and a third party or properties.

When it comes to a car insurance policy, you should be aware that availing a plan is mandatory by the law which means it’s a must to have. Car insurance policy is of two types – third party car insurance and comprehensive car insurance. Of these two, you will at least need to get a third party car insurance if not a comprehensive plan.

If you are confused between these two car insurance policies, this post will sort out the differences and provide a clear picture.

What is a third party car insurance?

As the name suggests, the third party car insurance policy offers coverage against any possible legal liability due to injuries caused to a third party when you are at fault. The third party car insurance scheme injuries and damages caused by insured cars to a third party property or person. As discussed earlier, it is a must for all car owners to at least have the third party car insurance plan as per the Motor Vehicles Act, 1988.

What are the benefits of the third party car insurance policy?

  • A third party car insurance policy offers many benefits such as:
  • Covers the owner of the vehicle against any legal liability of a third party in an accident
  • Covers the policyholder against serious or non-fatal bodily injuries to a third party
  • Provides coverage to the vehicle’s owner against the death of a third party
  • Provides financial assistance to the owner of the third party car insurance policy against any damage to a third party ‘s property in an accident

What is not covered in the third party car insurance policy?

  • No coverage for the damage cost caused to any belongings or automobile in the car if there is an accident
  • Provides no coverage to your own car or even if the belongings of your car get stolen or are damaged

What is a comprehensive car insurance policy?

A comprehensive car insurance policy provides a complete shield against damages to your own car arising out of an accident on road. It is known as a comprehensive plan as it offers coverage for your car damage, third party legal liability, theft and also the personal accident coverage.

You can also select some add-ons or riders such as medical expenses, engine protector, zero depreciation and more to improve its overall coverage limits.

The plan also covers fire, burglary, theft, natural and man-made disasters that could cause damage to your car.

What are the benefits of the comprehensive car insurance policy?

A comprehensive car insurance policy offers coverage against many things and provides benefits to your insured vehicles such as:

  • Theft
  • Vandalism
  • Glass damage
  • Damages done by a bird or an animal
  • Falling objects and missiles causing damages
  • Flood
  • Fire
  • Damages done by natural disasters such as hurricane, hail storm and more
  • Third party liability

The Bottom Line

Now that you are aware of the clear differences in the comprehensive car insurance policy and the third party car insurance scheme, you can pick one that suits your needs. All the best!

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