- Hyundai I10
- Hyundai Santro Xing
- Hyundai Elite I20
- Maruti Suzuki Wagon R
- Maruti Suzuki Swift
- Maruti Suzuki Swift Dzire
- Maruti Suzuki Alto
- Ford Figo
- Volkswagen Polo
- Recent years
- New Car
Difference between Comprehensive and Third Party Insurance
People are spoilt for choice and the human brain essentially hates making decisions. That’s why we thought we’d make things a little easier for you, by simplifying the difference between the two options you have in picking a car insurance for your car.
Choosing the right kind of insurance for your vehicle is crucial in India. After all, having at least a basic insurance that covers for third party is part of the law. Not having one can lead to traffic violations fines and can even lead to the disqualification of your driving licence! To protect you from both hefty fines and damages and losses that could arise due to mishaps both big and small such as accidents, collisions, floods, theft, et al, it’s important to understand the difference between a comprehensive and third party car insurance and accordingly decide on what will suit you and your car better 😊
Types of Car Insurance Plans in India
Damages/Losses to own car due to an accident
Damages/Losses to own car in case of fire
Damages/Losses to own car in case of a natural calamity
Damages to Third-Party Vehicle
Damages to Third-Party Property
Personal Accident Cover
Covers for owner-driver's bodily injuries or death. (Mandatory by law, one can opt in for the same if they don’t have one already)
Injuries/Death of a Third-Party Person
Theft of your car
Doorstep Pick-Up & Drop
Customize your IDV
Extra protection with customized add-ons
Difference between Third Party Insurance and Comprehensive Insurance
Third Party Car Insurance
Comprehensive Car Insurance
This is the most basic car insurance plan that only covers for damages and losses your car could cause to any third-party person, vehicle or person.
This is an all-round cover for your car- it only takes care of your third-party liabilities but also covers for you and your own car.
It only offers coverage for third-party damages and losses such as if due to an accident or collision, you hurt a third-party person, his/her vehicle or a third-party property. Additionally, it also includes a personal accident cover to protect you from personal injuries or death.
The coverage under this is extensive as it not only protects you against damage and losses caused to any third-party but, also covers for damages and losses to you and your own car. For example: If your car faces damages due to the floods in the city, your comprehensive car insurance will cover for it.
It protects you in case you accidentally hurt somebody on the road, or damage one’s vehicle/property. This way, you know you don’t have to dent your pocket in the case of such incidents.
It protects both damages to your own car and third-party damages as well. So, no matter what- you know you won’t end up in any losses! Additionally, you can also benefit from an NCB (No Claim Bonus) during car insurance renewals for every year you don’t make a claim!
It doesn’t cover for damages to your own car.
It is slightly more expensive than a third-party car insurance.
No customizations are possible under this car insurance plan.
You can customize your car insurance plan by adding specific add-ons and covers such as the zero-depreciation cover, engine and gearbox protection, Return to Invoice, Breakdown Assistance, etc
Cheaper than a comprehensive car insurance policy, the premium price here is predetermined by the IRDAI based on your car cc.
Although higher in price, the premium here is based on many more factors such as the city you drive in, your car’s make and model and of course, the add-ons you opt for (if any).
If you are currently driving a very old car, or you rarely drive then maybe having a basic third-party insurance would be sufficient for you.
Although slightly more expensive, this plan would give you complete coverage this proving to be more beneficial. Additionally, even if you don’t make any claims in a year, you can benefit from a No Claim Bonus discount during renewals.
More about Third-party Car Insurance
Benefits of Third-Party Car Insurance
Third-party car insurance which is also known as a liability only insurance plan is mandatory in India. Below are the benefits offered by a third-party insurance plan:
- This type of car insurance protects you from the legal responsibility if any loss or damage is caused by your four-wheeler to some other vehicle, property or lives.
- It provides financial assistance to the third party on your behalf.
- Third party car insurance provides coverage to both ‘no-fault claim’ and ‘fault liability claim’.
What is not covered in Third Party Policy?
Third-party car insurance plan does not cover any damage of your own vehicle. It does not protect your own four-wheeler from damage, theft or loss.
More about Comprehensive Car Insurance
What are the benefits of Comprehensive Car Insurance?
A comprehensive car insurance provides you with extensive coverage and benefits. Some of the benefits of a comprehensive car insurance policy are:
- It provides for an all-round protection for your own car.
- It protects your car against damages or losses which may be caused due to natural calamities like earthquakes, storms, floods, etc., or man-made activities like theft or vandalism.
- This type of car insurance also provides covers you on account of a personal accident. It takes care of injuries of the owner/driver in case of an accident.
- Additionally, the third party liability coverage is also an integral part of the plan.
- The third-party liability cover within a comprehensive car insurance provides protection towards legal liabilities that may arise due to damages or losses of a third-party vehicle, property or life caused by your four-wheeler.
- The third-party cover within comprehensive insurance takes care of both legal and financial assistance in case of an accident involving third party loss and damage.
- It also covers your car from any damages caused due to a fire.
However, there are certain limitations too, such as:
- A comprehensive car insurance does not cover for damages caused due to normal aging and wear and tear of your car.
- It cannot protect your four-wheeler from the depreciation of the value of the car over time.
- Comprehensive insurance does not cover for damages and losses in the case where the owner/driver was drunk driving or, driving without a valid driving licence.
- Damage of vehicle parts which are made up of fiber or rubber are not fully covered within the insurance.
- The policy does not cover for damages and losses caused due to a nuclear attack or war.
Why consider upgrading to Comprehensive Car Insurance plan?
If you’ve always opted for a third party car insurance and are currently looking to renew your car insurance policy, you can choose to upgrade to a comprehensive policy which will give you a better and extensive coverage for you and your car. Following are some advantages of upgrading to a comprehensive car insurance plan:
Note: If you currently have a third party liabilities policy only that is yet to expire, you can go for a separate Own Damage Only Policy, to get coverage on your own car as well.
What are the factors to consider before buying car insurance?
- You should check for your car's IDV
- You should gauge your car's age and decide on the right addons for your car
- Depending on the usage of your car you should decide on taking a third party or comprehensive insurance. If you are not planning to use your car too much, then a third-party car insurance could work, or else it is recommended that you go for a comprehensive car insurance.