Comprehensive Vs Third Party Insurance Which Is Better?
04 Nov 2019
It is essential that you have an appropriate car insurance policy when driving on the Indian roads. Third-Party insurance is mandatory under the Motor Vehicles Act, 1988. Failing to insure your car only makes you more prone to financial burden due to road mishaps, theft, and loss incurred due to natural and man-made disasters.
We all know for a fact that insurance providers in India offer two kinds of car insurance plans:-
People always tend to research between comprehensive and third party insurance, but generally a lot of people prefer purchasing third party insurance for cars as it provides low premiums. Thus, it makes the policy more affordable for people. However, third-party insurance only protects you against damages and losses caused to a third person, vehicle, or property.
On the other hand, comprehensive insurance provides extensive coverage. Even though the premium rates are relatively high, it is the most valuable policy available in the market. Comprehensive coverage not only protects you against third-party liabilities but also covers for damages and losses incurred by your car. Thus, a lot of people recommended purchasing comprehensive car insurance.
In this article, we will be discussing why comprehensive car insurance is better than third-party car insurance. But before we dive deep into it, let us first take a look at what these two policies are:-
Third-Party Car Insurance Plan
A third-party car insurance plan is commonly purchased by a lot of people across the country. It is a mandatory car cover that offers third-party financial protection against damages and losses incurred because of your vehicle.
Benefits of Third-Party Car Insurance
Generally, third-party car insurance is also known as liability-only insurance plans. Some of the critical features of a third-party car insurance plan are as follows:-
The policy is known for providing coverage for death and injuries incurred by the third-party because of the accidents that involve your vehicle.
Getting a third-party insurance plan is very easy as it does not involve a lot of paperwork. The main reason behind this is that the policy does not cover you for loss or damage incurred by you or your bike.
When compared to a comprehensive insurance plan, third-party insurance is quite affordable. The premium rates offered on them are very low.
Third-party car insurance will give you peace of mind as all the third-party liabilities are taken care of. So, in case any uncertainties or unfortunate events that involver other people, you will be well-covered.
Comprehensive Car Insurance Plan
A comprehensive car insurance plan is a bet. It not only covers the third-party liabilities but also protects you and your car in case of unfortunate events.
Benefits of Comprehensive Car Insurance
Like we mentioned above, comprehensive car insurance provides extensive coverage and benefits. Some highlighting benefits of a comprehensive car insurance plan are as follows:-
It contains all round protection for your vehicle
It will cover you and your car against damage or loss incurred due to human-made and natural disasters
Comprehensive insurance also provides personal accident coverage that takes care of the injuries to the owner or rider of the car in case of an accident
Third party liability coverage is an integral part of the comprehensive policy
Third party coverage within this plan provides required legal and financial assistance in times of accidents that involve a third-party loss or damage
It also covers your car against any loss or damages incurred during a war-like situation
Why Consider Buying or Upgrading To Comprehensive Car Insurance Plan?
A lot of you must have initially opted for a third-party car insurance plan as it is affordable and light on your pocket. However, this means that you are now looking for insurance renewal. Now, whether it is fulfilling your requirements or not, know that you can still upgrade to comprehensive coverage.
A comprehensive policy not only provides extensive coverage but also offers extensive protection to your vehicle. Here’s why you should consider buying/ upgrading to comprehensive car insurance plan –
With comprehensive car insurance, you are financially protected against damages and losses incurred by your car due to unforeseen events like accidents, collisions, or human-made and natural disasters.
Moreover, it also offers coverage for all third-party liabilities such as in case you damage or injure a person, their vehicle, or property.
You have the liberty to customize your policy further by opting for certain add-on benefits. With add-on benefits, you can provide your car with better coverage. Some of the add-ons coverage provided over and above your underlying comprehensive cover are as follows:-
With a comprehensive policy, you have the facility to customize your vehicle’s Insured Declared Value (IDV)
With comprehensive insurance under your name, you do not have to separately apply for personal accident cover as most comprehensive plan automatically covers for it all.
A Final Thought
If you are purchasing a new car insurance policy, make sure that you opt for extensive coverage provided by a comprehensive plan. On the other hand, during policy renewal, you can easily upgrade from third-party insurance to comprehensive coverage. The renewed policy will be delivered to you in no time.
Now that you know what is third party insurance and comprehensive insurance, head to Finserv MARKETS to choose a policy that suits you best. With Car Insurance policies available on Finserv MARKETS, you can benefit from features like swift claim settlement, round the clock assistance, cashless servicing, and more.
In fact, you can avail our hassle-free car insurance renewal facility online. So, why wait? Browse through different car insurance plans at Finserv MARKETS, right away!
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