Insurance companies in India offer two types of policies – comprehensive and third-party. While the third-party cover is cheaper and covers only third-party damages, the comprehensive cover offers wider coverage and is hence, slightly expensive.
What is the difference between comprehensive and 3rd party insurance?
In general, a comprehensive car insurance policy will cover you for a wide range of damages, injuries, and loss to your passengers, your vehicle, and other property. Third party car insurance is more restrictive, covering damage to other vehicles and their passengers, but typically not much else.
Which type of car insurance is best?
Which is a better Car Insurance? Taking a comprehensive car insurance cover is always advisable as it provides complete protection of not only someone else’s car like a Third-Party car insurance, but also the Own damages to your car, as well as any injury to the owner driver.
Is comprehensive or third-party cheaper?
Even though they offer a higher level of cover, you might find that comprehensive insurance actually works out cheaper than third-party policies. This is because, traditionally, a lot of high-risk drivers tended to go for third-party cover as a way of lowering their insurance costs.
Which policy is better comprehensive or third-party? – Related Questions
Is it worth getting fully comprehensive car insurance?
Fully comprehensive car insurance policies offer the most coverage out of all your options for cover. It offers protection against injury and damage for you and your vehicle, as well as any third-parties involved in a claim.
Is 3rd Party insurance enough for car?
It is mandatory as per The Motor Vehicles Act, 1988 and driving without a Third-party Liability policy is a punishable offense. However, it is not the most ideal coverage with regards to the above-mentioned purpose of insurance. Read ahead to know 3 reasons why a Third-party Liability car insurance is just not enough.
Do I need both comprehensive and third-party insurance?
Damage to your car or another person’s property in the event of an accident, which is why you need to purchase additional Comprehensive or Third Party insurance on top of CTP.
What type of damage is not covered by third-party insurance?
What type of damage is not covered by third-party insurance? Damage to your own vehicle. Damage to someone else’s vehicle. Personal injury.
Why is third-party insurance more expensive?
Third-party, fire and theft car insurance is more expensive than fully comprehensive policies, though they offer less cover, because they’re associated with more high risk drivers – and therefore more car insurance claims.
Is third party insurance a good idea?
Third-party cover is a good option for some drivers. Typically, third-party cover might work if you’re happy to cover the cost of any accident repairs yourself. This is often the case when the value of your car is low. There are some cases whereby third-party insurance may be your only option.
What is the benefit of 3rd party car insurance?
It protects you against any legal liability, accidental liability, or property damage in case of an unfortunate event. This policy also covers medical expenses in case a third party is injured in an accident or dies.
Why you should have a third party insurance policy?
A third-party insurance cover is a particular policy that protects you against legal or accidental liability, financial loss or damage to property. The cover also protects you in case of a third-party injury or even death of the person because of your vehicle.
What is 1st party and 3rd party insurance?
First-party refers to the insured individual, second-party is the insurance provider, and third party is the person towards whom damages are owed by the first-party in an accident.
Can you convert comprehensive to third-party insurance?
You can change the third-party car insurance policy to comprehensive car insurance policy after getting the inspection done and paying the required premium for the comprehensive car insurance policy.
How do I know if my insurance is third-party?
The main difference between third-party and comprehensive insurance is the kind of coverage it offers. While a Third-Party insurance only covers you against third-party damages and losses, a comprehensive car insurance will cover for your own damages as well.
Does 3rd party insurance cover personal injury?
Third party car insurance is a motor insurance contract that ensures protection of the vehicle owner against any unforeseen accidental liabilities arising out of third party vehicle damages, property damages, bodily injuries, disability and death.
What are the disadvantages of third party car insurance?
A third-party car insurance plan doesn’t provide coverage for the cost of damage caused to any automobile or any belongings in the automobile if there is any accident. Along with that, it won’t provide coverage to your car or if you belongings are damaged or stolen.
What all is included in third party insurance?
Third-party insurance offers protection against damages to the third-party by the insured vehicle. It covers physical injuries, damages to the vehicle, damage to the property, and death. Third-party insurance does not provide any compensation, if: The accident was caused due to drunken driving.