Are you planning to purchase a car?
In that case, do you know that buying a third-party liability insurance policy is mandatory? If you are already aware of this fact, it’s good; otherwise, you must know that to make a vehicle road legal in India, you must have car insurance.
Besides third-party car insurance, comprehensive car insurance is also available for vehicle owners. Now, what is the difference between these two insurance covers? While both offer financial coverage, their functions are different. So, let’s move on and learn about the difference between these insurance plans and understand which one is best for you.
Third-party car insurance is the most fundamental form of motor insurance. It covers your financial liabilities arising from the injuries, disabilities, and death of third-party individuals and damages to their properties. In India, every road-legal vehicle must have a third-party insurance plan, and without one, it will attract significant penalties.
Remember that the third-party insurance plan does not cover damages to your car or to the driver, owner, or passengers in the vehicle.
Comprehensive car insurance, on the other hand, is a better-rounded vehicle insurance plan. As its name suggests, it provides extensive financial coverage from third-party liabilities and damages to your car. Additionally, this policy extends coverage for medical assistance and treatment needed by the car’s occupants during the incident.
Now, a point to remember is that this policy is optional. You must purchase it to make the vehicle road-legal. But if you want to protect your financial investment from accidents, theft, natural and manmade damages, etc., this policy is ideal.
Furthermore, with comprehensive car insurance plans, you can extend the coverage with add-ons.
With the definitions out of the way, let’s dive into the differences between these types of motor insurance plans –
| Feature | Third-party Insurance | Comprehensive Insurance |
| Coverage | Third-party insurance pays for loss or harm you may have caused to an individual or their belongings. However, it does not cover the damages to your car financially or pay the medical expenses for the injuries suffered during the accident. | Comprehensive car insurance policies extend coverage for third-party liabilities and financial distress the policyholder suffers. This means the policy will pay for the losses of the third party involved in the accident and for the damages suffered by your car along with it. It will also have death and disability benefits if the policyholder suffers them and provide coverage for the medical treatment required due to the accident. |
| Cost | Third-party insurance for cars is affordable because it offers limited coverage. | A comprehensive policy costs more than third-party car insurance since it covers not only a third party’s liabilities but also the policyholder’s financial losses. |
| Legal Requirement | Third-party car insurance is mandatory by law in almost every country worldwide. It keeps you financially secure from any harm or loss you cause to the other party. | Comprehensive vehicle insurance plans, while offering greater protection, is not mandatory but is often recommended for complete peace of mind. |
| Add-ons | Additional coverages, also known as add-ons, are not allowed with online policies from third-party car insurance companies. | Comprehensive insurance entails additional optional packages like engine protection, zero depreciation, roadside assistance, etc. |
| Natural Disaster & Theft Coverage | Not covered | Covered |
| Medical Expenses for Policyholder | Not covered | Covered |
The primary reason to opt for both car insurance is to ensure complete protection. These two vehicle insurance policies safeguard you and others on the road. Here are some reasons why you should consider both of them –
The main differences between third-party car insurance and comprehensive insurance must be effectively comprehended to make the best choices for your automobile. While third-party insurance is the most affordable and mandatory requirement, the comprehensive insurance policy gives more flexibility and wider coverage. So, depending on your requirements, choose the one that best suits your needs and lets you enjoy your vehicle.
Internet Writer
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