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Which Car Insurance is Best in India: Comprehensive or Third-Party?

Published On May 09, 2023 10:00 AM By InsuranceDekho

Which Car Insurance is Best in India: Comprehensive or Third-Party?

Car insurance can be a saviour against financial burdens arising due to the loss or damage of a vehicle. You can choose between two types of car insurance: third-party car insurance and a comprehensive car insurance policy. Wondering which is the best? Continue reading to find out! 

Which Car Insurance is Best in India: Comprehensive or Third-Party?

Many insurance companies provide car insurance plans. Third-party insurance provides limited coverage to the policyholders, whereas a comprehensive car insurance plan offers extensive coverage. Furthermore, purchasing car insurance that provides coverage upto third-party liability is mandated in India. Many questions must be dancing in your mind, including “What is the difference between third-party and comprehensive car insurance?” “Does comprehensive car insurance cover third-party liabilities?” And lastly, “Which is the best: third-party or comprehensive car insurance?" Fret not. This blog will answer all of your questions. Let’s find out the details! 

What is Third-Party Car Insurance?

Third-party car insurance is a type of insurance that provides coverage against loss or damage that happens to a third party. According to the Motor Vehicles Act, it is mandatory to buy an insurance policy that provides coverage up to third-party liabilities. 

What is Comprehensive Car Insurance?

Comprehensive car insurance provides full protection for third-party liabilities and personal damage. Although having this kind of policy is not legally required, many car owners prefer it because of its extensive coverage. Comprehensive car insurance covers third-party liabilities and vehicle damages caused by accidents, natural disasters (floods, cyclones, etc.), man-made disasters (riots, vandalism, etc.), and fire.

Difference Between Third-party and Comprehensive Car Insurance?

Here’s the difference between third-party car insurance and a comprehensive car insurance policy. 


Third-party car insurance

Comprehensive car insurance


Only for third-party damages

Both own damage and third-party damages are covered.


Not Available

Add-ons like zero depreciation cover, collision damage cover, and more are available. 





No discounts are available.

Discounts in the form of a claim bonus, anti-theft devices, and more are available. 

Why is it Best to Purchase Comprehensive Car Insurance in India? 

It is best to buy a comprehensive car insurance policy in India due to the following reasons: 

  1. A comprehensive plan covers both own damage and third-party damages. 
  2. The policyholders can buy add-ons with their standard car insurance plan to expand its coverage.
  3. Aside from accidental damages, get financial protection for your vehicle against theft, fire, or natural calamity. 
  4. Get a no-claim bonus for not making claims during a particular year.  


In conclusion, a comprehensive car insurance policy has many benefits in comparison to third-party car insurance. When choosing any type of car insurance, compare different plans at InsuranceDekho and buy the one that provides maximum coverage within your budget.


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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