Things That You Need to Know About Third Party Car Insurance

Published On May 8, 2018 | By Camden Leon | Finance

In general, third-party car insurance offers appropriate protection against the legal repercussions arising in the event of an accident involving third party people or property. Overall, third-party car insurance provides coverage against all unforeseen circumstances to give you more peace of mind.

Third Party Car Insurance Vs Other Car Insurance

Third party car insurance is mandatory as per the Indian Motor Vehicle’s Act, 1988. The other popular type of auto insurance in the insurance market space is comprehensive car insurance that provides cover for yourself and your car, along with third party liability. It is not obligatory by law to purchase this type of policy.

Given below are the important points of difference between third party and comprehensive insurance for automobiles.

1. Extent of coverage

Third party insurance coverage is more for the benefit of third parties than the policyholder. Such plans are specifically designed to provide coverage for the injuries, pain, suffering, lost wages or death inflicted on another driver or pedestrian involved in the accident. Additionally, the policy also provides extensive property damage cover to third parties. In case of third party death, the victim’s loved ones may file for compensation which can be claimed from the insurance company issuing the plan.

On the other hand, comprehensive car insurance plans offer coverage for your own vehicle and self (in the form of personal accident cover). They are broader based and provide protection for third party as well. As the protection umbrella is wider, the premium charged is higher in case of comprehensive car insurance policies.

2. Price of the car to be insured

Third party liability cover is the ideal choice for cars boasting of low value. This is because the cost of repairs for damages inflicted by virtue of accident or any other untoward incident is not very expensive and can be managed easily. In most cases, the bills for repairing the car tend to be lower than the cost of buying comprehensive coverage.

In contrast, if the car in question is brand new, expensive, or less than 7 years old, it makes good sense to invest in a comprehensive insurance policy. Typically, the parts of expensive cars are quite costly and can be financially burdensome. Given this, it is important to safeguard yourself by buying adequate coverage beforehand.

3. Coverage for theft, natural disasters, total loss, etc.

There is no protection provided for theft, riots, hail, storm, or damages inflicted by animals in case of third party insurance. Your insurance company will not be liable to pay for the loss of your vehicle due to any natural or man-made causes.

On the other hand, you need not bear the financial outcomes of such damages if you have a comprehensive car insurance policy in place.

Is Third Party Car Insurance Cheaper Than Other Policies?

Insurance comparison portals like help you estimate the cost of insurance for your car. All that you need to do to work out the premium is fill in the requisite car and personal details correctly. The quotes of different auto insurance plans will show that third-party insurance is cheaper than most other types of policies. This is because it has very few inclusions.

As IRDAI fixes up the rates of various third-party components as per the engine capacity of different vehicles, you can be assured of getting standardized rates of insurance for your car. The rates may be revised annually, yet they provide adequate coverage to you on Indian roads. On the other hand, the comprehensive insurance premium is higher as it comprises of two primary components – own-damage premium plus third-party premium as defined by IRDAI.

Buy Car Insurance for Third Party Liability Coverage Online allows you to compare and buy the best third-party insurance cover online. Go for the highest coverage at the lowest premium to make good savings. In case you have accumulated no claim bonus by not filing for compensation claim in any given year, you may look forward to getting a discount on your renewal premium. Do renew car insurance at the earliest as it is required by law to enjoy the many benefits of third-party auto insurance!

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