Car insurance companies in India offer two types of policies: comprehensive and third-party. Comprehensive policies are slightly more expensive because they provide broad coverage, whereas third-party policies are less expensive and only cover third-party damages.
Comprehensive car insurance policies cover both personal damages and third-party liabilities, whereas standalone third-party car insurance cannot be used for emotional damages.
What exactly is comprehensive car insurance?
A comprehensive policy provides all parties involved in incident protection against damage. It is complete because it covers car damage, theft, legal liability to third parties, and personal accidents. You can always enhance the policy coverage by purchasing add-ons such as accessories cover, engine protector, zero depreciation cover, medical expenses, and so on. *
This coverage provides end-to-end coverage, resulting in less stress for the policyholder, and is thus very popular. You risk paying for costly car repairs after an accident if you do not have insurance. In India, standalone third-party insurance is less expensive than comprehensive car insurance.
Compared to standalone third-party coverage, comprehensive policies offer many advantages to the insured. This car insurance covers theft, fire, natural disasters such as hurricanes or tornados, vandalism, falling objects, animal damage, and civil disturbances such as riots that may damage or destroy your car.
Third-party automobile insurance
A third-party car Insurance policy can protect you from any liability to a third party caused by your negligence. Any damage or injury caused by the insured to another person or property can be covered. In India, Third-Party insurance is required by the Motor Vehicle Act of 1988. There are no specific limits on liability coverage for any third-party injury or demise.
Third-party car insurance shall cover any legal liability resulting from demise or injury to an individual or damage to property caused by the insured vehicle.
What is the distinction between third-party and comprehensive coverage?
The main distinction between third-party car insurance and comprehensive insurance is the level of protection provided to you and your vehicle. A thorough plan can give you and your extensive vehicle coverage. While third-party coverage has limitations, it only protects against third-party claims.
Several underlying factors usually determine the benefits and drawbacks of both types of car insurance. Understanding these variables is critical for a clear understanding of comparing, analysing, and selecting the ideal car insurance. Online car insurance premium calculators can help you to calculate your quotes depending upon your requirements.
When comparing car insurance, keep the following points in mind:
Choose your insurance based on the car’s value. If the value of your car has decreased, opt for third-party motor insurance because all repairs to damages are inexpensive and straightforward to manage. Compared to the high premiums associated with comprehensive coverage, the repairs can be less expensive. If your car is new and costly, use the comprehensive coverage option.
Third-party insurance shall cover third-party vehicle damage, injuries to other people involved in an incident, and third-party property damage. This coverage is becoming increasingly important as the cost of repairing damage rises.
Which insurance policy is ideal for you?
Comprehensive car insurance is wiser if you need coverage for yourself and your vehicle. It also includes provisions for a third party and a broader coverage plan.
* Standard T&C Apply
** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.
# Visit the official website of IRDAI for further details.
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.