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Difference Between Third Party and Comprehensive Car Insurance

Published On Oct 12, 2021 11:00 AM By InsuranceDekho

Comprehensive insurance covers third-party liability, damages from accidents whereas third-party car insurance only covers risk related to damages caused to a third person or your vehicle. Selecting the right kind of insurance is important for you. Read on to know about the difference between Third Party and Comprehensive Car Insurance.

Comprehensive insurance pays for the repair or replacement of car damages resulting from an accident. Third-party insurance covers damages and injuries to a third party. Selecting the right kind of insurance is important because having at least basic insurance provides coverage for the third parties is mandatory and not having such cover can lead to violation of the law.

Difference Between Third Party and Comprehensive Car Insurance

Difference Between Third Party and Comprehensive Car Insurance

Comprehensive Insurance

Comprehensive car insurance is an extensive car insurance policy. It covers risks related to your own damages. Comprehensive car insurance is a combination of third-party insurance and own damage insurance. It covers third-party liabilities and loss or damages of the car from accidents, vandalism, fire, natural disasters, etc.

By purchasing it you also get a personal accident cover. The coverage can be amplified by buying add-on covers. It also pays for damages caused due to natural calamities such as cyclones, earthquakes, floods, etc. Comprehensive insurance cover is widely popular because it offers full-fledged coverage.

A comprehensive insurance policy safeguards your car against vandalism, theft, glass damages, damages caused by animals, falling objects, missiles fire, damages caused by natural disasters like a wind storm, tornado flood, etc.

Comprehensive Car Insurance Exclusions

The factors that are excluded from the coverage of a comprehensive insurance plan are

  • Wear and tear of the car.
  • Depreciation.
  • Electrical or mechanical breakdown.
  • Damages caused to tube and tires.
  • Damages caused by a driver driving without a valid license or driving under the influence of alcohol or drugs.

Third-Party Insurance Cover

It does not provide coverage for the cost of damage caused to your car in case of  an accident nor does it provide coverage to your car if it is damaged or stolen. It only provides coverage against losses and damages that you can cause to third party property, person. Only loss or damage occurred to a third party or person is covered, any loss or damage occurred to your car is not covered. Third party insurance cover also provides personal accidents that protect you from death or injury.

Benefits of Third Party Car insurance

  • It covers you from losses and damages caused to a third party due to your car.
  • It helps you drive legally on Indian roads.
  • Having a third party car insurance protects your pockets from traffic fines.

Third Party Car insurance Exclusions 

  • A third party insurance will not cover damages to one's own car.
  • It wont cover for third party claims if you are found driving under the influence of alcohol or drugs or driving without a valid license.

Take Away

The pros and cons of comprehensive and third party insurance depends on many factors. In case the value of your car is low, you can purchase a third party insurance as the repairs and other damages can be managed easily. If your car is new and expensive, you should buy a comprehensive insurance policy. A comprehensive insurance policy is expensive as compared to a third party insurance plan as it offers wide range coverage for injuries, damages and theft.

Also Read: 

How To Lower Premium of Your Car Insurance?

Top Factors That Determine The Premium of Your Car Insurance Plan

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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