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Difference Between Comprehensive Car Insurance and Third Party Car Insurance Explained

Published On May 31, 2021 10:00 AM By InsuranceDekho

The difference between third party insurance and comprehensive insurance is the type of coverage they provide.

Driving on the roads comes with certain unavoidable uncertainties that can be a source of constant worry and anxiety for you and your loved ones. Moreover, since the car has become such a crucial aspect of our daily lives it is also important to protect it from the same uncertainties. The best way to prepare for such situations is to purchase car insurance. Moreover, it is best to make this purchase online, it allows you to compare the different car insurance companies, the quotes they are offering and their network of cashless garages all from the comfort of your home. However, it is important to understand the basics of car insurance when you purchase online. Hence, in this article, we will explain the difference between third party insurance and comprehensive insurance plans.

Difference Between Comprehensive Car Insurance and Third Party Car Insurance Explained

What Is Third Party Insurance in Car Insurance? What are Its Benefits?

Third party insurance is a compulsory insurance cover that takes care of your third party liabilities in case there is an accident. Since the cover is compulsory, if you are caught by the police without this insurance cover you will be fined Rs. .2000 and/or imprisoned for up to 3 months. The cover takes care of bodily injuries, death and property damage of the third party in case there is a mishap.

The benefits of purchasing third party insurance for your car include:

  • Financial Assistance

    In case of a mishap, it offers financial assistance to the insurance provider.
  • Compulsory Legal Cover

    Since this is a mandatory cover it ensures that you will not be fined for it.
  • Peace of Mind

    With third party insurance you can rest assured that in the event of a mishap you will not need to worry about your third party liabilities.
  • Easy to Purchase and Renew

    Other than all the other benefits, since you can renew and purchase the cover online it is easy to keep in check.

What Is a Comprehensive Insurance Plan in Car Insurance? What Are Its Benefits?

The comprehensive insurance plan offers all-around protection for your car in the event of a mishap. The insurance plan will take care of both your damage costs and third party liabilities if there is an accident under a single premium. If you are looking for a hassle-free way to protect your car it is best to purchase a comprehensive insurance plan. 

The benefits of a comprehensive car insurance plan include:

Own-Damage Costs Taken Care Of

Own-damage cover includes the damage caused to your vehicle by a mishap under several different circumstances. This includes car accidents, fires, natural disasters, man-made calamities and cases of vandalism. 

Third Party Liabilities Covered

The third party cover is obligatory for every car in India. With a comprehensive insurance plan, your third party liabilities along with own-damage costs in the event of a mishap.

Add-on Covers

These optional covers can significantly improve your car insurance’s strength and make a significant difference to the claim amount in case there is an accident.


Since the cover takes care of all the aspects of car insurance under s a single premium and policy document there is less paperwork and single expiry date to keep in mind.

How Is a Comprehensive Insurance Plan Different from a Third Party Insurance?

The most significant difference between the comprehensive insurance plan and the third party insurance plan is the type of coverage it offers. The third party insurance cover is compulsory and will cover the costs of third party liabilities only in the event of a mishap. On the other hand, the comprehensive insurance plan, as the name suggests offers holistic coverage. It will take care of own-damage costs and third party liabilities in case there is an accident involving your car.

Take Away

In a nutshell, third party insurance is an obligatory cover that must be purchased by every car owner to drive their car legally on Indian roads according to the Motor Vehicles Act 1988. The comprehensive insurance plan takes care of both third party insurance and own-damage costs under a single premium. This means that it offers better coverage and can provide better protection for your car.  

Also read 

Car Insurance Premium For Comprehensive Car Insurance

Difference between Comprehensive car insurance and Zero Depreciation Cover

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.    

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