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

Car insurance is a must-have requirement for every vehicle owner, but every policy is not equal in terms of coverage. If a car owner is holding a third-party insurance policy and wants to be able to have much better coverage for the vehicle, they must be shifting to a comprehensive car insurance plan, which can be a good idea. Here in this blog, every major and minor detail related to how one can convert third-party insurance into comprehensive insurance, benefits from switching, and everything a car owner will need to observe while switching is discussed in detail.

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.

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

1. Broader Coverage: Comprehensive Insurance offers coverage for both third party liabilities as well as damages to own vehicle like accidents, theft, fire and natural disasters vis-a-vis third party insurance which only covers third party related liabilities.

2. Protection Against Theft or Loss: A comprehensive insurance provides protection to your own vehicle against theft or losses whereas a third party Insurance will cover only third party damages.

3. Financial Security for Own Vehicle Damage: Incase of accidents that cause damage to your own car, comprehensive insurance covers the repair or replacement costs, which is not the case with third party Insurance. 

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

1. Assess Your needs: Always evaluate the scope of coverage as per the car’s value, usage as well as risk exposure, also consider add-ons like zero depreciation, engine protection if required.

2. Contact Your Insurance Provider: You can contact your insurer to inquire about upgrading the policy from a third-party policy to comprehensive. You can also verify if your current provider will offer the transfer or whether switching to a new provider will be beneficial.

3. Comparing The Comprehensive Plan: Also research and compare the different insurance policies from various insurers to ensure that you get the best coverage and premium rates. Use all types of online tools or consult with us at InsuranceDekho to get assistance in choosing the right insurer for you.

4. Undergo Vehicle Inspection: A vehicle inspection will be required to upgrade the policy especially if the insurer needs to assess the condition of your car. Always ensure that the car is in good condition to avoid any complication during the transfer process.

5. Submit Documents: Provide all necessary documents like copy of existing third party insurance policy, vehicle registration certificate (RC), driver’s license, identity proof and address proof.

6. Paying The Premium Difference: Always pay the premium difference which is required for upgrading to a comprehensive plan. The premium will depend on the vehicle age, model, location and all add-ons chosen.

7. Receive Policy Confirmation: Once all the payment and documentations are processed then the insurer will issue a Comprehensive Insurance Policy. Review the policy document carefully to confirm all the details, coverage and add-ons.

8. Ensure Policy Activation: Confirm the activation date of the comprehensive policy and verify it. Check that it aligns with the expiration date of your previous third-party policy to avoid all gaps in the coverage.

Things You should Check Before Switching to Comprehensive Car Insurance Policy

1. Coverage Details: Ensure that the policy provides coverage for third party liabilities, own vehicle damage from accidents, natural disasters, theft and fire.

2. Premium Costs: Compare all types of premium rates across all insurers to zero in on a  cost-effective policy. Also check if the benefits offered by comprehensive policy justifies the additional cost over the cost and benefits of third party insurance.

3. Add-on Options: See the add-on options like zero depreciation cover, roadside assistance, engine protection cover and consumables cover. Only choose add ons which are necessary to enhance your overall coverage.
   

4. Renewal Flexibility: See whether the renewal process offers flexibility to customise add-ons, make adjustments.

Conclusion

Switching to a comprehensive car insurance policy from a third party policy will offer enhanced protection with peace of mind, but it will require the evaluation of the new policy’s coverage, premium costs, add -on options to meet your needs. Note that it is recommended to buy or switch your plan to a comprehensive policy as it protects you from legal and financial liabilities arising both from your car damage or due to an accident involving a third party.

FAQs

• Is it possible to upgrade my third party insurance to a comprehensive policy?

Yes, most of the insurance providers allow an upgrade from third party insurance to a comprehensive plan, either at the time of renewal or by modifying the existing policy.

• What documents are required to switch from the third party to comprehensive insurance?

The current third party insurance policy document, vehicle registration certificate (RC), identity and address proof, and driver’s license.

• Will my No claim bonus transfer to the new comprehensive policy?

Yes, if you have not made any claims, your no-claim bonus can be transferred to the new policy.

• Is a vehicle inspection mandatory when switching the policies?

Yes. In most of the cases the insurer will require the vehicle inspection to assess its condition before issuing a comprehensive policy, specially for the older vehicles.

• Will I Lose the coverage during the switching process?

No, you can schedule the start date of the comprehensive policy to align with the expiration of your third party insurance to avoid any coverage gaps.

• How much more will I pay for a comprehensive policy?

The cost of the policy will depend on the factors like the vehicle make and model, location, age, and add ons chosen. The cost of comprehensive car insurance is generally higher than a third party policy.

• Can I customize the comprehensive policy with the add-ons?

Yes, most of the insurers will offer various add ons like zero depreciation cover, and engine protection that can be included in the policy.

• Is it better to upgrade with the same insurer or we can switch to the new one?

Yes, you can upgrade with the current insurer for convenience but comparing the policies from different insurance providers will help you to find better coverage and lower premiums.

• What will happen to my existing third-party policy when I switch?

If you upgrade your policy with the same insurer, then the existing policy gets modified. If you are switching to a new insurer, you can close the old policy after the comprehensive one is active.

•  How long will it take to switch from third-party to comprehensive insurance?

The process is quick and it can be completed within a day or two, especially if the insurer does not require any extensive vehicle inspection. Switching via an online process will be more time-effective.

Also Read: 

Tips To Compare And Buy The Best Car Insurance Online

Tips To Lower Premium For Car Insurance Policy