Differences Between Comprehensive And Third party Car Insurance

What is comprehensive car insurance?

Comprehensive car insurance is one of the most preferred kinds of car insurance policies as it incorporates not only third party liabilities and commitments but also compensates for the damage enforced on you and your car. Even though purchasing this policy is not mandatory, it is still a prefered choice since it has a large coverage.

Profits of purchasing comprehensive car insurance

Compensate for your car’s damage

The main profit of buying comprehensive car insurance is that it saves your car from any terrible damage and losses because of accidents, collisions, fires, etc.

This way, not only will you save unpredictable costs but also make sure your car will remain in good shape even in the case of an accident.

Save your pocket from third party liabilities

One of the main reasons people buy any kind of car insurance is to obey the law and safeguard themselves from losses in case of any third party damage.

What’s good about comprehensive insurance is that while saving you and your car, it also keeps you safe from losses in case you hurt a third party person or property. 

You can personalize your IDV

It is believed that you know your car better than everyone. That’s why when purchasing comprehensive insurance online, you will be provided with the choice to personalize your IDV, i.e. the market value of your car. This will straightly influence your premium and claim amounts.

Select an adjunct for better coverage

Most people would rather have comprehensive insurance because they can personalize their policy just in the way they like by choosing add-ons to expand the kind of coverage their car can get.

Cost-effective

Although the price of comprehensive car insurance is more than that of third party insurance, it still comes to light to be a lot more cost-effective since the coverage and profits you get with comprehensive car insurance are a lot higher, saving you a lot of money in the long term! 

Keep your car safe during natural disasters

Nobody can manage nature’s many disasters. But with comprehensive car insurance, you can at least keep your car safe from any damage that is caused because of them.

So, whether your car is hurt due to a storm, tornado, or earthquake, it will be kept safe through it all. 

Repay you in case of car theft and manmade calamities

Carjackers are the worst! Within minutes you can miss one of your most valuable possessions. Gratefully, though, comprehensive car insurance can contribute to you in this case by repaying for the loss of it. Even cases of vandalism, terror attacks, riots, and other manmade calamities are covered.  

You can select breakdown assistance

A Breakdown Assistance is one of the several add-ons accessible in comprehensive car insurance. But what makes this add-on distinct is that it never counts a claim.

Refrain from depreciation with zero dep cover

Everything drops value over time. But if you’ve selected a zero-depreciation cover in your comprehensive car insurance, you can keep your car safe and new. This essentially means you can evade the depreciation on its parts and therefore, receive more money during claims because of the depreciation! Sounds great, doesn’t it? 

Comprehensive car insurance does not cover:

  1. Aging, weathering, and depletion of the vehicle
  2. Depreciation
  3. Electrical or Mechanical breakdown
  4. Damage to tires and tubes. Still, if the vehicle is broken at the same time, the liability of the company will be restricted to 50% of the replacement expense.
  5. Damage caused by a person driving without a valid license.
  6. Damage brought about due to drunken driving or driving under the effect of drugs.
  7. Loss/damage triggered by war, mutiny, or nuclear risk.

Still, there are certain restrictions:

  1. Comprehensive car insurance does not make up for the damage caused due to normal aging and weathering and depletion of your car.
  2. It cannot keep your four-wheeler safe from the depreciation of the car’s value over time.
  3. Damage to vehicle parts that are comprised of fibre or rubber is not completely covered by the insurance.
  4. The policy does not make up for damage and losses triggered because of a nuclear attack or war.

What is third party car insurance?

If you do not want to buy a comprehensive car insurance policy, third party car insurance is the most essential and legal form of car insurance policy you will require. As the name indicates, this will only keep you safe from damage and losses triggered by a third party and won’t make up for your damage.

Profits of purchasing third party car insurance:

Low price

While third party car insurance does not cover as many areas as the comprehensive car insurance, it costs a lot less. You won’t have to worry about high annual premium costs when opting for a third party car insurance. If your car is old and you are sure the damage done during an accident won’t cost that much, purchase this insurance policy.

Covers for third party liabilities

The chief goal of third party car insurance is to make up for your losses and damage caused to a third party because of your car. Thus, this incorporates situations such as if you collide with a car or damage one’s personal property. In such cases, your third party insurance will make up for the losses.

Keeps your pocket safe from traffic fines

Since possessing third party car insurance is obligatory by law, not possessing one can lead to you paying huge penalty fines. Thus, having third party insurance can keep your pocket safe from wasting money on traffic fines! 

Differences Between Third party & Comprehensive insurance:

One main difference between third party insurance and comprehensive insurance is the scope of safety provided to you and your vehicle. While comprehensive insurance gives multiple safety covers for you and your vehicle, a third party cover is restricted to offering security against the claims of a third party. The strong points and weak points of these two kinds of car insurance are dependent on several essential factors. It is fundamental to better discern these variables to juxtapose, analyze and decide upon the right insurance program.

Value of the car:

If the value of your car is low, it is reasonable to buy third party motor insurance since repairs to the damage triggered can be handled efficiently and simply. It is affordable to pay for repairs when juxtaposed to paying the high premiums related to comprehensive cover. Still, if the car is new and exorbitant, a comprehensive cover is the better choice.

Coverage:

Third party insurance makes up for the damage to the third party vehicles, the damage to other people and third party property. Some companies get excess for third party property coverage. This coverage is of the highest importance these days since the expense of repairing the damage to the car is high. But it does not give you any coverage for the damage to your vehicle.

Expense:

A comprehensive cover is costlier than a third party cover because it gives coverage for a huge variety of damage/injuries/losses.

Reasons to opt for comprehensive car insurance:

Comprehensive is also called “other than collision” coverage because it usually incorporates coverage for:

  1. Burglary
  2. Sabotage
  3. Broken glass (including broken windshield)
  4. Damage maintained from hitting an animal or bird
  5. Damage from dropping objects or missiles
  6. Fire incidents
  7. Storms
  8. Damage is maintained because of severe weather or natural disasters such as windstorms, hail, typhoons, and tornadoes.
  9. Damage to a third party

Without having comprehensive coverage, an insurance claim cannot be made if your vehicle gets damaged (not because of a collision). For high-valued cars, this type of insurance is great for additional protection.

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