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Can you drive someone else's car with third party insurance?

By Finserv MARKETS - Jul 25,2019
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Third Party Car Insurance Coverage

Driving With Third Party Insurance

Before we discuss whether or not you are legally permitted to drive someone else’s car under your third-party insurance, we must first understand what exactly does a third-party insurance cover?

What Is Third Party Insurance?

A third-party insurance is a type of car insurance policy that offers protection against liability claims made by a third party. A third-party car insurance ideally offers two types of coverages-

  • Liabilities arising out of bodily injuries to a third party: These include hospital expenses, lost wages, etc.
  • Liabilities arising out of property damages of a third party: These include payment for restructuring or replacing of landscape, damages to fences, mailbox, billboards, etc.

According to the New Motor Vehicle Act, having a third-party car insurance is mandatory for all car owners. This move is taken with an aim to reduce the number of uninsured vehicles on the road.

Third Party Cover for Driving Some One Else’s Car

A third-party car insurance is the minimum coverage required for your car. However, as its name suggests, the coverage is for third parties only. Although it is not illegal to drive someone else’s car as long as you have the owner’s permission, if you get into an accident while driving that car, you will get reimbursement for third-party damages only under your insurance cover. If in the collision, the vehicle that you are driving gets damaged, you will have to pay its repair costs from your own pocket. Needless to say, you must be extremely cautious while driving your friend’s or employer’s car, otherwise, you will be legally liable to pay the damages in case the car gets involved in any accidents.

Other Options

Although, the coverage for third party car insurance is limited, there are other vehicle insurance policies available in the market that offer a more comprehensive cover. If you are planning to buy car insurance online, make sure you explore all comprehensive insurance options and the benefits covered under them. Some of these comprehensive insurance policies have a DOC (Driving Other Cars) coverage. Generally, a DOC benefit is granted to drivers over the age of 25 years. Depending on your driving experience, the coverage type and the car insurance premium amount for DOC policies differ. Also, certain professions are excluded from this coverage. For instance, those in cab business are likely to drive their employer’s vehicle regularly. Insurance providers may view such drivers to be more prone to getting someone else’s car involved in an accident. Thus, for such drivers, mostly the cab companies have their own insurance plans in place. In special cases, you can even buy DOC coverage for temporary usage.

The Bottom Line

Since third-party insurance’s coverage is limited to third-party liabilities only, it is advisable that you consider driving someone else’s car only when you have a comprehensive coverage with DOC benefit. There are several insurance providers that offer DOC privileges with their four-wheeler insurance plans. To know more about the inclusions and exclusions in motor vehicle insurance policies, visit Finserv MARKETS today! You can buy an online car insurance starting at just Rs. 3127 per year. Apply for a car insurance plan today and avail benefits such as 24×7 roadside assistance and cash free servicing across 4000+ network garages! You can also check the premiums for car insurance plans available on Finserv MARKETS by using the car insurance calculator. The tool not only provides a quote but also allows you to compare quotes offered by insurers in India. Based on the results, you can then choose a car insurance plan that is affordable and fulfils your needs.

To know more on car insurance in depth, you can check out these blogs:

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522