How to Convert from Third Party to Comprehensive Car Insurance Policy?

As children, we grew up protecting our toy cars from all external factors. We still have that child inside us who keeps their real motor cars safe and protected. Agreed? Though we try our best to safeguard our vehicles from accidental damage and other mishappenings such as burglary, natural calamities, theft, fire explosions, and much more, somehow such unfortunate circumstances just happen. 

Therefore, a car insurance policy has been introduced in order to safeguard car owners financially from the above-mentioned situations. There are different types of motor insurance you can choose from among which third-party insurance policies and comprehensive car insurance policies are two. Continue reading to find out a detailed guide!

Difference Between Third-Party And Comprehensive Car Insurance Policy

Before taking your four-wheeler on Indian roads, it is necessary to get it insured with a valid insurance policy bought from a legitimate insurance provider. Check the below section in order to understand which policy would be the best for you. 

• Third-Party Insurance Cover:

Under this type of insurance policy, the policyholder gets financial assistance in case he  causes an accident, damage or injury to a third party person or property. It is mandatory by law to buy a third-party insurance policy to travel on Indian roads. Moreover, it also offers legal protection to shield you from any harm that your car might cause to a third party or another vehicle. Any injuries, disabilities, deaths, or damages to vehicles or property caused to another person, such as pedestrians, other automobile occupants, passengers, or bystanders, are covered under the third-party car insurance policy.

However, third-party insurance is insufficient because any costs associated with damages caused to the policyholder’s car are not covered. ar o

• Comprehensive Car Insurance Policy:

This insurance policy is designed to cater to all your requirements and safeguard you against losses in the best possible way. Unlike third-party liability policy, in this plan, you will get total protection. In simple terms, a comprehensive insurance policy is the one that provides coverage for both own damage and third-party losses. 

Reasons For Switching From Third Party To Comprehensive Car Insurance Plan

• A third-party car insurance policy covers only third-party liability whereas a comprehensive covers both hird party as well as own damage In contrast to a third-party policy, comprehensive coverage protects you from theft or total loss of your vehicle, including its accessories.
• A comprehensive insurance policy provides coverage for all circumstances including, fire, vandalism, explosions, natural calamities, and more. 
• Various other add-ons such as engine protection cover, zero depreciation cover, NCB protection cover, and many more are available with a comprehensive car insurance policy. 

Steps To Transfer Your Third Party Car Insurance Policy To Comprehensive Plan

Here’s a step-to-step guide for switching your third-party policy to a comprehensive plan. 

• Visit an online portal of car insurance provider
• Navigate to the car insurance page
• Enter your car details
• Choose a comprehensive car insurance policy
• Set the Insured Declared price of your car
• Buy extra coverages or Add-ons if needed
• Read the Terms and Conditions of the car insurance policy
• Complete the payment

You will be prompted to choose a date for the examination if your insurance underwriter decides they need to look at the vehicle. Your auto insurance policy will be delivered to your mailbox within a few days if your request is approved. 

Things You Should Check Before Switching To Comprehensive Car Insurance Policy

When switching from a third-party insurance plan to a comprehensive policy, you should consider the following factors.

• Price Of Policy: 

You should always compare the plans with different insurance providers on the basis of the price in order to make a cost-effective decision. Moreover, check out the number of add-ons provided by the companies to make sure that all your requirements are met. 

• Maximum Coverage:

The sole purpose of switching the policy is to enhance coverage for your car insurance policy and get the maximum benefit. Therefore, you should always check all the features covered under the plans offered by different insurance providers. 

• Insured Declared Value (IDV):

Insured Declared Value, or IDV, is the estimated current market value of your car. The value of your car insurance coverage will be entirely determined by the IDV of your vehicle. Additionally, it is the maximum sum that your insurance provider would be liable to pay in the worst-case scenario involving theft or damage to your vehicle.

• Deductibles:

Deductibles are costs that must be borne at the time of filing a claim. There are 2 forms of deductibles in car insurance–voluntary and compulsory  As the name implies, you can choose to pay a voluntary deductible as needed, which lowers the cost of your insurance. Therefore, keep in mind that it is not mandatory and you are only voluntarily promising a portion of the claim amount. The mandatory deductible could be a little sum that you are required to pay at the time of claim settlement.  

• No Claim Bonus:

No claim bonus is a reward given to the policyholder for making no claims during the policy period. It is given in the form of discounts on the premium amount. However, it is only applicable from the second year onwards. 

Conclusion

Unlike third-party insurance, purchasing a comprehensive car insurance policy is not mandatory by law. However, it offers many advantages to the policyholder. As it provides financial security, the policyholder can live stress-free in any unforeseen circumstances that can damage the vehicle.

Also Read: 

Tips To Compare And Buy The Best Car Insurance Online

Tips To Lower Premium For Car Insurance Policy