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Why Should You Buy Third Party Car Insurance?


Written by Amit Jain

Updated Oct 18, 2023

Why Should You Buy Third Party Car Insurance?

Every owner of a four-wheeler is required to obtain third-party automobile insurance as a fundamental motor vehicle coverage. Third-party car insurance provides financial protection for the insurance holder in the event that a third party experiences losses or damages to their property or suffers physical harm or property damage.

Third-party auto insurance protects the operator or owner of the motor vehicle involved in a circumstance where harm is caused to a third party, even though the direct beneficiary is the third party and not the insurer or the insurance company.

Why Should You Buy Third Party Car Insurance?

Need for Third Party Car Insurance

The third-party coverage plan is typically a part of the primary auto insurance policy because it is required by law in India.

According to the Motor Vehicles Act of 1988, third-party insurance is a requirement for anybody who owns, purchases, or operates a motor vehicle. A policy known as third-party car insurance or liability cover guards the owner or driver of the automobile against any legal liability, unintentional liability, monetary loss or property damage, and medical bill coverage in the event that a third party is harmed or even killed as a result of the car.

Benefits Of Third Party Car Insurance

Following are some of the key benefits offered by third-party car insurance plans - 

  • Legal protection and financial support are provided by third-party automobile insurance policies, as they cover any loss or damage to a third party's property and the insured person's legal liability in the event of a third party's death or disability. In such a case, the legal and financial burden is taken care of.
  • Ensures Peace of Mind: Third-party auto insurance policies offer comfort when confronted with a stressful circumstance where the outcome entirely depends on the ability to make payments. Therefore, rather than continuing to worry about such unplanned costs, the focus is only on getting immediate stress relief and dealing with the occurrence.
  • The process of obtaining third-party auto insurance is quick and simple. Third-party auto insurance coverage can be purchased or renewed with ease. When choosing third-party auto insurance, they may also be purchased or renewed online, which is a reasonably quick and easy process to do. As a result, everyone can easily use it at their convenience and according to their schedule.
  • Cost-effective and advantageous for the insurer in any unforeseen circumstance: In terms of financial costs and premiums, including the third-party vehicle liability insurance component in the overall auto insurance policy is very advantageous and cost-effective, whether as an add-on or a necessary component of the primary plan. Additionally, the insurer's income is considered while determining the compensation.
  • Simple 24/7   availability of third-party automobile insurance Unlike most other plans, which are only available for renewal or application via the conventional offline process, Third party auto insurance policies and policy renewals are conveniently accessible online around-the-clock, that is, 24 hours per day, 7 days per week, 365 days per year, from any location. This is what makes it so well-liked: it's easily accessible and mobile.
  • There is no doubt that the peace of mind that third-party insurance provides to people who own, drive, or are considering purchasing a new car on the legal, financial, and mental aspects. They are protected by this insurance against any problems that might occur due to any unexpected events.


We're confident that you now understand how crucial it is to spend money on third-party auto insurance. Always keep in mind that this is the best approach to obtain comprehensive coverage against losses you can suffer in the event that your car is damaged, stolen, or causes injury, death, or property damage to third parties.

Also Read: 

A Car Insurance Claim Is Frequently Denied For A Variety Of Reasons

How To Renew My Car Insurance Policy?


Written by Amit Jain

Amit is an upcoming name in the motor industry be it new cars/ bikes or used ones. Amit in his last stint worked as a consultant for major Fortune 500 companies across the globe.&Read More


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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