Comprehensive Vs Third Party Car Insurance

Difference Between Comprehensive and Third Party Car Insurance

In India, there are two types of insurance policies offered—comprehensive and third-party. The Indian laws mandate third-party insurance which only covers the third-party damages whereas a comprehensive cover offers extensive coverage at a slightly higher premium. It covers both personal and third-party liabilities. When choosing an insurance policy, there are several factors you need to keep in mind. The major question for all car owners is whether to buy comprehensive car insurance or third-party insurance.

Let us look at both the options in detail:

Comprehensive car insurance

A comprehensive policy will offer protection against damages to both the parties that are involved in an accident. It is extensive coverage and will cover the damages to the car, liability to third parties, theft and personal accident cover. You can also enhance the cover with add-ons such as engine protector, medical expenses and zero depreciation cover. It offers end-to-end coverage which means less stress for the car owner. If you do not have the cover, you will have to pay out of pocket for repairs or damages to the car. Comprehensive insurance is slightly costlier and includes coverage for natural disasters as well.

Third-party car insurance

The third-party car insurance will offer cover against any type of legal liability caused to the third party when you are at fault. The insurance will cover the damages or injury caused by the insured to another property or person. However, it will not cover the cost of damages to the vehicle in case of an accident.

Difference between the comprehensive and third-party cover

The main difference between the two insurance alternatives is the range of protection offered to you and the car. It helps to understand the strengths and weaknesses of each policy and compare car insurance online before making a decision.

AreaComprehensive car insuranceThird-party car insurance 
Protection A comprehensive plan will provide extensive protection to the owner and the car.  A third party is limited to offering protection only against the claims of a third party. 
Add-onsThere are several add-ons for you to consider. It will enhance the protection of your car at a slightly higher cost. There is only a personal accident add-on available.
CoverageYou enjoy extensive coverage that can be enhanced with add-ons. The coverage may not be adequate with third-party four wheeler insurance. Your car will still be at risk and in case of an accident, you may have to bear out-of-pocket expenses.
CostThe comprehensive cover will cost more than the third-party cover and if you buy add-ons, you will have to pay more. A third-party car insurance policy will be the cheapest option. This is because it offers limited coverage and the cost of insurance is fixed by the authorities based on the engine’s cubic capacity of the car. 

Which is the right insurance cover for you?

Car owners looking for complete protection should opt for comprehensive car insurance. It is a wider coverage plan with provisions for third-party liabilities. It may be slightly expensive as compared to a third-party insurance cover but it is worth the money. You will not have to pay out-of-pocket expenses in case of damage. With add-ons, you can easily enhance the coverage and remain well protected. If you own a high-end, premium car, you must choose comprehensive coverage.