What Should You Choose for Your Car: Third Party Insurance or Comprehensive Insurance?

Both third party insurance and comprehensive insurance policies differ mainly from the point of coverage they offer. So before you go ahead and decide on which one to buy; you should know about the benefits that they offer.

Third party insurance: It covers against any legitimate liability to a third party that may have arisen because of your fault. It provides coverage against any injury or damage caused by you, to another property or person. This type of insurance covers the owner in the event of any legal liability due to death or injury to any individual or damage to any property caused by the vehicle. As per the Indian legal system, it is mandatory for new car buyers to purchase at least third party insurance coverage.

The drawback of this policy is that it does not cover the cost of damages to a car or the stuff in the vehicle in case of an accident. It also does not provide coverage if your car or belongings are destroyed or stolen.

Comprehensive Insurance Policies: This type of insurance provides complete protection to your vehicle when the same happens for any reason other than an accident. This type of policy is wide-ranging and it covers theft, damages to the car, legal liability to the third party and provides personal accident cover. One can further enhance the scheme by choosing the add-ons such as engine protector, accessories cover, zero medical expenses, depreciation cover, etc. Unlike third party insurance, this coverage is the most sought after policy as it provides total coverage and therefore ensures less hassle for the policyholder. 

2. Floodwaters

3. Theft

4. Glass damage 

5. Damage from falling objects or missiles

6. Damage sustained from hitting an animal or bird

7. Damage to the Third Party

8. Fire incidents

9. Damage due to bad weather or natural disaster 

In India, auto insurance is provided to cars, commercial vehicles as well as two wheelers. So, if you are the owner of a car, you should go for car insurance while a two wheeler owner should opt for two wheeler insurance and a commercial vehicle owner should go for commercial vehicle insurance. With the fast increase in the number of car owners in the city, the insurance for cars is also growing at a fast rate. The premium that one needs to pay for the insurance of a car will depend on the value of the car, manufacturing date of the car and the state where the car has been registered. It is suggested that a car owner should always choose a policy that offers the maximum insured declared value on the vehicle, even if it means a bit of higher premium.