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Difference between Comprehensive and Third Party Insurance

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About Comprehensive Car Insurance

Comparing car insurance is a necessary step before you pay for the deal. Thanks to the internet, users can easily compare car insurance policies online. When you buy car insurance online, the process is simple and multiple comparison options are available in a single tab for you to make the best purchase.

In general, a comprehensive car insurance policy covers any damage to your vehicle as a result of natural disasters such as floods, earthquakes, landslides, and storms, as well as human-made disasters like thefts, riots, and strikes.

While comprehensive car insurance provides more coverage than third-party insurance, it does not always have to be expensive.

Benefits of buying comprehensive car insurance

A comprehensive car insurance plan provides your car with 360-degree coverage throughout its lifetime. The following points emphasize its importance:

1. High level of security to your vehicle - Unlike car insurance from third parties, a comprehensive insurance plan offers superior protection by compensating you if your car is damaged during an accident.

2. Claim for compensation in case of injury or death - The car insurance policy protects you against bodily injury and unfortunate demise.

3. Covers legal and financial hurdles - A comprehensive car insurance plan, apart from covering the damages to your vehicle, also includes any legal liabilities that may arise in the event of an accident.

4.Protects your car against fire accidents - A robust car insurance policy also protects your vehicle against the damage caused by fire-related accidents.

5. Full protection against natural calamities - It also serves as a buffer against natural disasters that can make your expensive car irreparable.

About Third-party car insurance

Third-party car insurance protects you from any legal liability you may face if your car is involved in an accident. Whether it is death, disability, injury or substantial damage to a third party property, it is compensated for by your insurer.

The Motor Vehicles Act, 1988 made the protection on third-party vehicles mandatory for the Indian roads. A car without third-party car insurance is considered illegal. If you are tech-savvy, you can also buy car insurance from third parties either through your chosen insurance company's official website or mobile application or from an online insurance broking platform.

Few issues protected by third party car insurance are:

Legal responsibility for third parties: The cover's legal liability is limitless in the event of death or injury to the third party.

Property damage: If any property is damaged by accident, compensation for the property's losses will be settled.

Personal accident compensation for driver: In an accident, third-party car insurance covers the death or any bodily injury suffered by the vehicle's owner-driver.

Benefits of Third-party car insurance

The significant benefits of purchasing car insurance from third parties for your vehicle are as follows:

Offers legal cover and financial assistance - Third-party car insurance cover is responsible for the financial responsibility in the event of an accident that causes third party harm.

Gives peace of mind - It could be stressful to pay large sums of money to an aggrieving third party while dealing with this traumatic situation that is dependent on financial payments.

Hassle-free and time saving - The process is infinitely faster, simpler and depends entirely on your timing and convenience with the option of buying or renewing third-party car insurance online.

Inclusions in Third-party car insurance

Every car owner must get third-party car insurance to ensure the proper protection against unnecessary expenses arising from medical treatment, property damage, or a financial loss from the end of a third party.

In this car insurance, the insured person is known as the first party, the insurer as the second party and the person who is injured as the third party. Before you decide, look at the inclusions of this type of car insurance:

  • A third-party car insurance plan protects against damage caused by an insured vehicle in an accident to a third party (the loss involves damage to property, death, and injury)
  • Third-party liability insurance is an inherent part of all the country's car insurance plans
  • Many insurance companies today give the owner-driver of the insured vehicle a personal accident cover along with the protection of third-party liability

Exclusions in Third-party car insurance

Like the general car insurance policy, under certain circumstances, the standard third-party insurance is not applicable. Some of these exclusions are described below-

  • Accidental loss/damage/ liability suffered outside the geographic area defined
  • Claims that arise out of any contractual liability
  • Use of the car that does not adhere to the generally stipulated 'Limitations as to use'
  • The driver of the vehicle is someone who isn’t the owner or a designated driver
  • Accidental loss/damage arising from any potential failure by the third party
  • Liability caused by radioactive contamination or nuclear weapons directly or indirectly
  • Loss, or damage caused by the battle, invasion, and other warlike operations

Difference between comprehensive car insurance and third-party car insurance

The main difference between comprehensive and third-party insurance is the amount of protection it provides. While third-party car insurance will only protect you against injuries and accidents from third parties, comprehensive car insurance will also cover your damages.

Value of Car

If your car's worth is small, it is better to take out third-party car insurance as it is cost-effective and easy to handle repairs for damage caused. Compared to paying the high premiums linked with full coverage, it is cheaper to pay for maintenance.

Expenses

Third-party car insurance covers damage to third-party property and injuries caused by accidents to other people. For third-party property coverage, some companies charge extra. Due to the high cost of fixing damage to the car, this protection has become a priority these days. But it doesn't provide any protection for your vehicle against injury.

Coverage

Comprehensive car insurance provides covers damage or injury caused to the car or a third party who is driving a vehicle due to an accident or collision. It also offers a cover for personal events to shield you from personal injuries or death.

While third-party car insurance not only protects you from any third damage and loss, it also covers you and your vehicle for damage and loss. For example: if your car faces damage due to flooding, it will be covered by your robust car insurance.

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