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.
What are the 3 types of car insurance?
3 Types of Auto Coverage Explained
- Liability coverage. Protects you if you cause damage to others and/or their stuff.
- Collision coverage. Covers your car if you hit another car, person or non-moving object (like those darn ornamental rocks cousin Todd has at the end of his driveway). #
- Comprehensive coverage.
Which policy is better comprehensive or third-party? – Related Questions
What is the most common car insurance?
Bodily injury liability coverage (BI) is the most common type of auto insurance because it’s required in almost every state.
Which type of car insurance is cheapest?
Minimum liability insurance is the cheapest type of car insurance and lowest level of coverage required by most states. Additionally, most car insurance quotes also include full coverage quotes for those who need a higher level of protection.
Is it worth getting comprehensive car insurance?
Comprehensive insurance can save you money if you can’t afford to pay for repairs (to your or someone else’s car) or live without your car. Third party property, fire and theft insurance might suit you if you park on the street. It will save you money if your car gets stolen.
What type of insurance do I need?
The Bottom Line
Most experts agree that life, health, long-term disability, and auto insurance are the four types of insurance you must have.
What does fully comprehensive car insurance mean?
In a nutshell, comprehensive car insurance cover – sometimes known as fully comprehensive cover, pays out if you damage your car, someone else’s car or injure someone in an accident, regardless of who is at fault. Comprehensive car insurance also covers you against fire and theft.
Can I drive someone else’s car if I’m fully comp?
No. There was a time when many fully-comp policies automatically gave you third-party insurance to drive any car, but those days have gone. So even if you’re fully covered for your own car, don’t assume you’re insured to drive other people’s cars otherwise you risk breaking the law.
Can I change my car insurance from third-party to fully comp?
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.
Why is comprehensive 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.
Is comprehensive insurance better?
A comprehensive car insurance is one of the most preferred types of car insurance policies, as it covers for not only third-party liabilities and losses but, also covers for damages caused to you and your own car.
Does fully comprehensive cover breakdown?
While comprehensive cover may provide everything you need, bear in mind that there are additional features and benefits that may not be included with your policy including breakdown cover, legal cover or courtesy cars.
Why is third-party insurance more than comprehensive?
It’s all based on stats and, as it stands, more claims are made on third-party policies than fully comprehensive ones because of the type of driver that buys them. Yet there is another reason why third-party only policies can be more expensive, and that’s because fewer providers offer them.
Does comprehensive insurance cover the driver?
Does Motor Vehicle Comprehensive policy cover the driver and/or the owner? No. As the name suggests, Motor Vehicle Comprehensive policy only protects damage or loss to the motor vehicle and any claim made by the third parties. As such the policy does not pay any claim for loss or damage made by the policyholder.
What is covered by third-party insurance?
Third-party insurance covers the cost of damage to someone else’s property. This is most likely to be another car, but you’d also be covered if you hit someone’s wall or knocked over their fence. Third-party insurance may also cover compensation costs if you cause someone an injury.
Is third-party insurance included in comprehensive?
As mentioned above, comprehensive car insurance is a combination of third party insurance and own damage insurance. It provides comprehensive coverage against third party liabilities and loss or damages of the car from accidents, vandalism, fire, falling objects or floods.
What is not covered under comprehensive coverage?
What damage is not covered by comprehensive coverage? Comprehensive coverage does not cover damages caused by hitting another vehicle or object. These incidents are covered under collision coverage. It will also not cover normal wear and tear on your vehicle.
How do I know if my insurance is third-party?
In third-party car insurance, damage to the third-party vehicle and personal injuries and death of passengers is covered. But own damage cover is not available. In a comprehensive car insurance policy, both third-party damage and own damage cover are available, along with personal accident cover for the owner-driver.