Which Car Insurance is Best in India: Comprehensive or Third-Party?
Which Car Insurance is Best in India: Comprehensive or Third-Party?
Car insurance can be a saviour against financial burdens arising due to the loss or damage of a vehicle. You can choose between two types of car insurance: third-party car insurance and a comprehensive car insurance policy. Wondering which is the best? Continue reading to find out!
Many insurance companies provide car insurance plans. Third-party insurance provides limited coverage to the policyholders, whereas a comprehensive car insurance plan offers extensive coverage. Furthermore, purchasing car insurance that provides coverage upto third-party liability is mandated in India. Many questions must be dancing in your mind, including “What is the difference between third-party and comprehensive car insurance?” “Does comprehensive car insurance cover third-party liabilities?” And lastly, “Which is the best: third-party or comprehensive car insurance?" Fret not. This blog will answer all of your questions. Let’s find out the details!
What is Third-Party Car Insurance?
Third-party car insurance is a type of insurance that provides coverage against loss or damage that happens to a third party. According to the Motor Vehicles Act, it is mandatory to buy an insurance policy that provides coverage up to third-party liabilities.
What is Comprehensive Car Insurance?
Comprehensive car insurance provides full protection for third-party liabilities and personal damage. Although having this kind of policy is not legally required, many car owners prefer it because of its extensive coverage. Comprehensive car insurance covers third-party liabilities and vehicle damages caused by accidents, natural disasters (floods, cyclones, etc.), man-made disasters (riots, vandalism, etc.), and fire.
Difference Between Third-party and Comprehensive Car Insurance?
Here’s the difference between third-party car insurance and a comprehensive car insurance policy.
|
Basis |
Third-party car insurance |
Comprehensive car insurance |
|
Coverage |
Only for third-party damages |
Both own damage and third-party damages are covered. |
|
Add-ons |
Not Available |
Add-ons like zero depreciation cover, collision damage cover, and more are available. |
|
Premium |
Low |
High |
|
Discounts |
No discounts are available. |
Discounts in the form of a claim bonus, anti-theft devices, and more are available. |
Why is it Best to Purchase Comprehensive Car Insurance in India?
It is best to buy a comprehensive car insurance policy in India due to the following reasons:
- A comprehensive plan covers both own damage and third-party damages.
- The policyholders can buy add-ons with their standard car insurance plan to expand its coverage.
- Aside from accidental damages, get financial protection for your vehicle against theft, fire, or natural calamity.
- Get a no-claim bonus for not making claims during a particular year.
Conclusion
In conclusion, a comprehensive car insurance policy has many benefits in comparison to third-party car insurance. When choosing any type of car insurance renewal, compare different plans at InsuranceDekho and buy the one that provides maximum coverage within your budget.
