Third-Party Car Insurance with Fire & Theft Coverage

A comprehensive car insurance plan is ideally the best as it provides coverage for own damage as well as third-party liabilities. But it also comes at an increased cost as compared to third-party insurance plans. This is where third-party fire and theft insurance comes in.

In this blog, we will understand third-party fire and theft insurance and its inclusions and exclusions.

What is Third-Party Theft & Fire Insurance Policy?

A third-party fire and theft insurance policy safeguards you against potential damages caused to others and shields your vehicle in the unfortunate events of fire or theft.

Hence, it provides greater coverage than third-party insurance. It is also a more comprehensive choice as compared to just third-party car insurance.

Inclusions of Third-Party Theft & Fire Insurance

When you opt for a third-party fire and theft insurance policy for car insurance, you’re not just protecting yourself from the potential harm your vehicle may cause to others, but also you protect your vehicle in case of theft or fire. The “third-party” aspect refers to the coverage provided for any damage or injuries caused to someone else or their property due to an accident involving your vehicle. This can include medical expenses, repair costs, or legal fees that could arise from such incidents.

In addition to the third-party coverage, this policy also includes protection against specific risks, namely fire incidents and theft. If your car is damaged or destroyed by fire, you can make a claim to cover the cost of repairs or the market value of the vehicle. Likewise, if your vehicle gets stolen, the insurer will compensate you based on the car’s market value.

Exclusions of Third-Party Theft and Fire Insurance

When considering third-party fire and theft insurance for car insurance, it is crucial to be aware of the exclusions that could result in your claim getting denied by the insurance company.

Firstly, if your insured car suffers damage due to a fire caused by an electrical or mechanical breakdown, it may not get covered under the policy.

Damages resulting from road accidents to the insured car, such as collisions with other vehicles or objects, are excluded from coverage.

Another exclusion is if the driver involved in the accident does not possess a valid driving license at the time of the incident. Moreover, using the insured car for illegal activities also voids insurance coverage.

Furthermore, the policy does not cover your own damages, bodily injuries, or those of your passengers. Loss or damage incurred during war or war-like situations gets typically excluded, as well as damage caused by acts of terrorism.