We all know one thing that the primary difference between third-party car insurance and a
comprehensive car insurance one is that of coverage. The third-party insurance as clear with the name only covers for third party liabilities, while the comprehensive one covers for damages done to own vehicle as well. Also, one more thing which would be clear is as the latter covers more things one will have to pay more premiums to get the policy. While driving on Indian roads having the right insurance is necessary. While third-party insurance which is the basic one is mandatory comprehensive insurance is an option for the car owner.
Having car insurance is important to protect you from hefty damages, theft, losses due to the mishap, damages due to Collison, flood it is important to know the differences between both the coverages to make a decision on which one is better for your car.
Key Differences
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Comprehensive Insurance |
Third-Party Insurance |
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What is it? | This is the full cover for our car and apart from covering the cost of the third party it also covers the damages done to your car. | Third-party insurance is the most basic car insurance that one could get. It covers any damages done to the third-party vehicle. |
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Details | This covers a lot of things from theft, damages due to a natural occurrence, mishaps, and any accident. It covers the cost of your vehicle for these damages as well as for the third party in an accident. | It offers protection to a third-party car or person who got into an accident with you. Apart from this it also includes a personal accident cover which could cover for your injuries. |
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Advantages | This will never allow you to end up with losses as it covers for both the parties. Also, you will get the benefit of No Claim Bonus every year. | The premium rate is low and thus if you are a safe driver you don't have to worry about the high annual premium rates. |
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Limitation | It is slightly on the expensive side if compared to third party insurance. | It doesn't cover the damages done to your own car. |
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Customization | There are a lot of adds on that could be included in the policy which could be zero depreciation cover, engine and gearbox coverage | As this is a simple policy no customization is possible in this policy. |
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Premium Price | Higher in price but that depends on a lot of other factors such as the city you drive in, car make, model, add on, etc. | Cheaper than the comprehensive insurance and the rates are pre-determined by IRDAI. |
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Which one should you buy? | Although expensive this would give you complete coverage on a lot of things. Additionally, you can be benefitted by No claim Bonus if you don't make any claim. | If you are driving an old car or you drive your car very less the best option to go for is a third-party cover and pay low premiums. |
Buy
motor insurance online and get the best possible rates after comparisons.
