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All about Comprehensive vs third-party car insurance: Which to choose?

Insurance companies in India majorly offer two types of policies, comprehensive and third-party. When driving on Indian roads, either of them remains important and mandatory by the law.

The third-party cover is cheaper and covers only third-party damages, the comprehensive cover offers a wider coverage and is hence, slightly expensive.

Without any bias, this article will provide you with the pros and cons of both third party and comprehensive insurance, allowing you to choose the best that covers all your needs.

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What is third-party car insurance?

For every vehicle that sets its wheels on the road, it is compulsory to have third-party insurance by the Motor Vehicles Act of 1988.

Third-party car insurance is the most basic car insurance that one could get. It covers all expenses that arise in cases where you happen to damage any third party. Whether that’s a third-party property, person or even another vehicle itself.

Third-party car insurance offers the following benefits:

  • Legal protection and financial assistance: Third-party insurance cover will financially protect you in case of death or disability of the third party and also covering damages of the third-party property or vehicle. This ensures that your legal and financial liability in case of a third-party claim is taken care of.
  • Cost-effective and beneficial: A third-party insurance plan comes at highly affordable premiums that are light on your pocket. However, it is important to be careful when selecting your insurance provider, and not to be swayed by vicious middlemen. Choose a trusted car insurance company and get a car insurance online quote to invest in a policy that perfectly meets your needs.
  • Stress-free: Third-party car insurance policy gives you peace of mind in case of a traumatic or un-announced event when it comes your way. Such events are financially draining. Hence, instead of worrying about these expenses, you will get immediate relief from stress, and be assisted by experts in dealing with the incident.
  • Easily available: Because of their legal mandate, third-party insurance is easily accessible and easy to buy or renew online for your car. You can avail of it at your time and convenience.

These are some of the benefits covered under third-party insurance for cars. However, there are much more benefits when you buy a comprehensive car insurance policy.

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What is comprehensive car insurance?

Comprehensive car insurance provides a wide range of benefits that provides on-road protection and financial coverage for the vehicle owner, especially from risks and damages caused due to accidents.

A comprehensive car insurance policy protects your car from any unforeseen event except collision. It offers overall protection against damages to both parties involved in an accident. This scheme is extensive, as it not only covers the third party but also covers damages and losses undergone by the first person.

Benefits of Buying Comprehensive car insurance

These are not just any minor benefits, but the comprised coverages offer to substantiate the level of unforeseen events and to be prepared with it, much in advance. Here is the list of benefits proving why it is the best policy for cars.

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The highest level of protection for your vehicle

Comprehensive car insurance covers everything that has to keep your vehicle safe. Providing you with ultimate benefits, it is also known to be one of the safest choices of insurance coverage in India. This insurance covers third-party damages and own damages, with affordable premiums.

Extensive Add-ons

Comprehensive car insurance allows you to purchase additional covers that boost your financial security to a higher level.

The more add-ons you purchase the more you protect your car from all harm. Note that these covers cannot be purchased on a stand-alone basis or along with a Third-party Liability policy.

Add-ons are only purchased comprehensively, designed to cover the exceptions of a policy and to lend a bit of personalization to your vehicle insurance cover. Here’s a list of popular insurance Add-ons:

  • Zero Depreciation
  • Roadside Assistance
  • Return to Invoice
  • Passenger Cover
  • Pay-driver coverage
  • Tire protect cover
  • Engine & gearbox protect
  • Consumable covers

Wide range of offers unlike the third party:

Though comprehensive car insurance already consists of third-party insurance, these extensive benefits are not covered by third-party alone.

But with comprehensive add-ons, this insurance provides majestically more than what third-party insurance provides. When opted for comprehensive insurance online, you will also enjoy discounts and offers on these add-ons under comprehensive insurance.

Financial protection equals peace of mind:

When you know that your car is financially secure, then the human mind is in ultimate peace.

With comprehensive insurance, all parts of your vehicle now have good financial support, it is enduring and satisfying to the efforts put in while buying a new vehicle.

Natural calamities

Accidents cannot be predictable, and understanding the force of nature is impossible. Here’s why opting for comprehensive insurance will keep your finances secure from floods, fire accidents, riots, explosions, falling trees, storms, floods, typhoons, hail, wind and earthquakes.

Car theft

Your car may be lost, stolen, or damaged beyond repair despite maintaining all security. The comprehensive insurance will compensate for the same, based on your car and policy’s sum insured.

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Third-Party Car Insurance Comprehensive Car Insurance
Definition It is the most basic form of insurance.

It covers any damages done to the

third-party vehicle only.

This is an all-around cover for your car- it not only

takes care of your third-party liabilities but also covers for you and your own car.

Coverage Details It only offers coverage of TP accidents and damages for vehicles/property/houses. It also includes a personal accident cover to protect you from personal injuries or death. It not only protects you against damage and losses caused to any third party but,

also covers for damages and losses

to you and your own car.

Advantages It financially protects you in case you accidentally hurt

somebody on the road, or damage one’s vehicle/property.

This way, you know you don’t have to dent

your pocket in the case of such incidents.

It protects both damages to your own car and third-party damages as well. So, no matter what- you know you won’t end up in any losses! Additionally, you can enjoy the benefits of an NCB (No Claim Bonus)

during car insurance renewals for every year, you don’t raise a claim!

Limitations It doesn’t cover damages to your own car. It is slightly more expensive than third-party

car insurance.

What to choose? If you are currently using a second-hand vehicle, and you rarely use it, then maybe having a basic third-party

Insurance will do the job.

Although slightly more expensive, this plan covers every bit with its serviceable add-ons.

If you purchase a brand new car

and want to be prepared with all that the Indian roads

throw at you, then comprehensive car insurance is the best to choose.

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