Confused whether you should go for both the comprehensive cover and the third-party liability cover or a third-party cover alone is enough for you? Well, this is a common doubt amongst the customers looking for a car insurance policy for their car. What really triggers this doubt is the third party car insurance price. When you come to see the difference between the premiums of a third-party and a comprehensive cover, you start to rethink your decision of buying both of them. But in order to arrive at a final conclusion for what to do i.e. third-party cover alone or both the insurance covers, you have to weigh the pros and cons of each case against each other. In this article, we are going to find out if a third-party car insurance is ideal for you or is a comprehensive car insurance is also equally necessary. The way we are going to do this is by making it clear what kind of coverage are you getting by going with either of the ways, taking a look at what are things that you miss out and whether the savings you make by going for the former choice are worth it or not. So, without wasting any further time, let us get right into the primary discussion of this article.
Key Differences between a Third-party insurance and a Comprehensive car insurance
To find out the answer to the moot point of this article, we have to first understand the key differences between the two types of car insurance policies available in the market. See, the simple and the most obvious difference between the two insurance plans is that the coverage provided by a third-party plan is only for the damage caused to a third-party while the coverage provided under a comprehensive cover is for the personal and own-vehicle damage. A third-party car insurance policy is a basic form of insurance and frequently, you will come across insurance policies from companies like TATA AIG car insurance and HDFC Ergo car insurance which will offer the third-party coverage as an extension with their comprehensive cover. Since there are multiple add-ons and extensions that you buy along with your comprehensive insurance plans, the price of this cover is also significantly higher than a third party car insurance price with which there are no such extensions available in the market.
Coverage provided under a third-party cover
Most of what was to be written in this section has already been discussed above. Many of you guys must be having a good idea of the coverage provided under a third-party car insurance policy. the coverage is provided only for the damage caused to the third-party in an accident caused by you. The damage coverage includes vehicle damage, property damage, and any bodily damage.
When it comes to the reimbursement part of the story, the things start to get a little bit messy and blurry. It starts by filing an FIR in the police station nearest to the spot of the accident which is followed by making of the charge sheet by the policemen. The next step is to file a case in the tribunal court and wait for the verdict to be announced because only after that you can get a compensation for your damage by the third-party cover of another party. As most of you have guessed it by now that this process is very long and time taking. So, many times what happens in practice is that both the parties involved in the accident agree to pay for each other’s damage without needing to knock on the doors of the court. Cases reach court only when there are any major bodily injuries involved in the accident or even worse, Death.
One more thing you guys need to know about is that in India, according to the rules and regulations (Motor Vehicles Act 1988), every car has to have at least a third-party car insurance in order to be driven around legally. There is no such regulation regarding a comprehensive cover policy.
Coverage you miss out on by not choosing a comprehensive plan
You must have noticed one thing in the last section, there was no discussion about personal vehicle damage or personal bodily injuries. The reason for this was that no personal coverage is provided under a third-party car insurance policy. in order to get personal coverage, you have to get a comprehensive car insurance policy. Under a comprehensive car insurance plan, you get coverage for vehicle maintenance and damage repair from authorized service centers, theft insurance, protection against malicious attacks and even medical expenses in case of any physical injuries to the policyholder or any of the passengers. Not only this, if you feel that this coverage is not enough, then you can also look out for the extensions provided by the insurer. Many companies like TATA AIG car insurance and Bajaj Allianz car insurance provides extensions for protection in case of a natural disaster like earthquake, flood, landslide or a lightning, coverage even in case of self-ignition etc.
But did you take a look at the topic of this section, this is all the coverage that you are going to miss out on if you choose only a third-party car insurance? Well, if you’ve made a verdict yourself by now, then it is good, but make sure what our verdict is in the next section.
Final Verdict: Is a Third-party car insurance ideal for you?
Now that we’ve discussed a lot on the moot point of this article, it seems to be the right time to arrive at a final verdict. Should you save the money and go only for a third-party cover or a comprehensive cover is a must buy?
See, in our opinion the protection you miss out on by not purchasing a comprehensive car insurance policy is very necessary. In a country like India where driving on road in itself is a very big risk, you cannot afford to drive your car on road without a proper insurance policy on your back. Yes, a third-party cover is also necessary but that doesn’t mean that it will suffice your coverage needs from a car insurance policy.
A good workaround for this case is that you can make use of a car insurance calculator to compare car insurance policies to find out the one that fits right into your budget and fulfills most of your requirements. Or you can also go for a comprehensive cover that provides third-party coverage as an extension. In the end, it all boils down to a few steps, compare car insurance policies using a simple tool like car insurance calculator.
You might be thinking that this is the end of this article, but my friend, there are still some things that are to be discussed, we are not going to leave you on the middle ground. Yes, we know that we provided you a couple of workarounds in the last para but did we talk about what exactly are car insurance calculators or how to compare car insurance policies. So, hold yourself for just a little bit longer now, we are going to make it quick yet elaborate for you guys.
Car insurance calculators
A car insurance calculator is nothing but a simple tool available inline on the websites of many car insurance companies like TATA AIG car insurance and HDFC Ergo car insurance. The way you use them is that you have to type in a few details about yourself, your income and some information about your vehicle. on the next screen what you get is a budget that you should have for your car insurance policy and some of the car insurance policies that fit right into your budget and provides you a good amount of coverage. This way, you get a number that if you are a noob in the car insurance world will not let you overspent on a car insurance plan while making sure at the same time that you get nice coverage from your insurance policy.
Tips and tricks to compare car insurance policies
Compare car insurance policies, no matter how easy it sounds but in reality, it can be a pretty difficult task to carry out as the market is flooded with hundreds if not thousands of car insurance policies from multiple insurers. Below, we have mentioned a list of parameters that you should consider while you compare car insurance policies:
- Coverage provided
- Price of the policy
- Claim Settlement policy or ease of Claim settlement
- Price of the car insurance policy
Next up is the list of few tips that will help out in finding the right car insurance for you:
- Shop around for the maximum options available both online and offline. The more policies you will explore, better will be your knowledge about a car insurance and thereby, you’ll be able to make an informed choice eventually.
- A good driver’s record is a plus for you as a customer as you can get some decent discounts on the premiums if you are maintaining a decent driving record.
- Having anti-theft gadgets installed in your car also can get your discount on the cost of your policy.
- Lower mileage readings indicate that your car is less driven which decreases the probability of you getting into an accident and thus, lower are the chances of your insurer having to pay for the damages. Therefore, lower mileage readings also act as discount magnets.
So, we discussed pretty much everything, now is the easy part, shop around, browse the net, find yourself a good car insurance policy and enjoy the benefits provided by it.