GENERAL INSURANCEIRDAI Regn. No. 157
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Third Party vs Comprehensive Insurance
Here’s how Third-party car insurance stacks up against Comprehensive car insurance.What does it cover?
Third Party
It covers the damages caused to another individual or their property due to the insured car.Comprehensive
In addition to third-party liability coverages, theft, damage from calamities, fire, etc. are also covered for your car.Are Addons Available?
Third Party
Only a Personal Accident Add-on is includedComprehensive
A number of useful Add-ons can be bought with this type. For example, Zero Depreciation, Roadside Assistance, Accessories Cover, and more.Is the coverage adequate?
Third Party
No, as the insured car is still exposed to risks.Comprehensive
Yes, as this is a comprehensive policy and can be customised with Add-ons.Which is the cheapest?
Third Party
This is the cheapest type of car insurance due to its low coverage. The cost of a third-party car insurance policy is fixed by IRDAI on the basis of the engine's cubic capacity of the car.Comprehensive
The cost of this car insurance policy is higher due to its wider coverage. The cost of this policy is fixed by the insurer as per the terms and conditions of the policy.
Thus, a Comprehensive Car Insurance cover is better than a Third-party Car
insurance policy as it offers an extensive coverage that can be further customised with
Add-ons. A Third-party liability policy will leave you vulnerable to risks involving
damages to your own car. Third Party Car Insurance
A third-party car insurance is a type of four-wheeler insurance that offers financial protection to the owner of insured car in case of injuries or damages to another person or their property. Buying at least a Third-party car insurance policy is mandatory as per The Motor Vehicles Act, 1988.
Third-party Liabilities
It is the most basic form of auto insurance coverage in India. The car owner is the first party, insurer is the second party and any person affected by the insured car is the third-party.
Legal Liabilities
Every four-wheeler owner/first party legally need a third-party car insurance cover to drive on the Indian roads.
Compensation for death
It ensures that in case of a road accident, the person being harmed by your vehicle is compensated.Comprehensive Car Insurance
Comprehensive Car Insurance offers an extensive coverage that covers both - Third-party Liabilities and Own Damage. Buying this type of policy is not mandatory by law, however due to its enhanced coverage it is the preferred choice for many car owners.
Own Damage
A comprehensive car insurance policy does more than just financially cover you against damages caused by your car to another person or their property. Its covers damages to the insured car.
Enhanced Coverage
Repairs for the damages caused to your car, under circumstances like an accident or natural calamity, are covered by your insurance company.
Add-ons
The extent of coverage offered by your insurance company under a comprehensive insurance can be customised with Add-ons.Ways to Buy Third-party or Comprehensive Car Insurance
It is very easy to get your car insurance. All you have to do is use the widget given above and follow the instructions to buy your policy online. In case of a Comprehensive policy, we may need to inspect your car before issuing a policy.Online
As mentioned above, all you have to do is scroll up and fill the required details to get your car insured. Select the type of policy, fill in your details, select add-ons if required, make payment, and you will receive your policy instantly via email.Through an Agent
An insurance agent is affiliated to an insurance company and will provide the necessary application forms and other details. You will receive the policy document via post or through the agent.By visiting the branch
Once you select the insurance company, visit their branch for getting your car insured. The representative at the help desk will guide you through the process.Factors to consider before buying Car Insurance
A Third-party car insurance is compulsory as per The Motor Vehicles Act, 1988. But a comprehensive car insurance is the smarter choice. Consider these factors before buying a car insurance policy:
Value of the car
If you have a high-value car, you could consider a Comprehensive car insurance policy. In the event of loss or damage, you need not pay the high expenses from your pocket.Coverage
If you want to be stress-free in the event of any loss, opt for a Comprehensive policy. It covers the damage caused to your car and any possible injuries. This is in addition to the cover that a third-party policy offers.
Expense
If you do not have a high insurance budget, opt for a third-party insurance. It is cheaper than a Comprehensive car insurance. However, in the long run you may have to pay from your pocket.
Insurer
Choose an insure that provides the best price for your car insurance policy. Your insurer should also provide service that are useful in the time of need.Glossary
In any case, be sure of going through the fine print of the policy documents carefully. At the time of claim, it will be beneficial if you are aware of the inclusions & exclusions of your car insurance policy along with the terms & conditions of the insurance company.
Glossary
Car Insurance terms you would want to know.ADD-ONS
These are extra services and coverage you ask voluntarily for your policy. They push up your premium but also add extra coverage. Thus, it is important to choose the best-suited Add-ons for you.COVERAGE
The coverage and services offered vary across different insurance policies.DEDUCTIBLE
You pay a small portion of the bill, say Rs 1,000. It’s called a Deductible. You can voluntarily increase this to lower premiums. But, at the time of claim, you will have to pay the increased deductible amount from your pocket.IDV
Insured Declared Value (IDV) is the market value of your car. It lowers over time due to depreciationNO CLAIM BONUS (NCB)
Insurers reward you when you do not make a claim. Every consecutive no-claim year gets you a bonus or premium discount called ‘No-Claim Bonus’.ZERO DEPRECIATION
Ensure that your insurer pays you the whole value of your car without deducting any depreciation through a Zero Depreciation cover.
Frequently Asked Questions
Why is buying comprehensive car insurance a smarter choice?Buying comprehensive car insurance is a smarter choice
because it offers a dual benefit of third-party coverage as well as own damage.
Plus you can choose add-ons which will further enhance the scope of your
insurance policy.Why is comprehensive car insurance more expensive
than third-party policy?Comprehensive car insurance is more expensive than
third-party policy because a third-party car insurance policy covers only
the damages caused to the third party person or property. It offers the
most basic coverage.On the other hand, a comprehensive car insurance
policy pays for the damages caused to your car as well as injuries caused
to you, along with compensating the third-party. This extended coverage
makes comprehensive car insurance more expensive than third-party policy.Why is buying third-party car insurance mandatory in India?Buying a third-party car insurance is mandatory in
India because, it ensures that the third party liability, damaged/ injured
in an accident involving your car, will be compensated for the loss. It
covers the cost of treatments for a person injured due to your car and
compensates for the loss occurred due to the damaged property.
Can I switch from a third-party policy to a comprehensive policy on renewal?Yes, you can change the type of your car insurance policy.
Your car will be thoroughly inspected before your policy approval. So,
just make sure to get those pre-existing dents on your car repaired,
before inspection.What are the best add-on covers for a comprehensive car insurance policy?The best add-on covers for a comprehensive car insurance policy are:Zero-depreciationNCB protectorRoadside assistanceReturn to invoiceLoss of personal belongingsBuying an add-on cover totally depends on your personal
requirements. So, it is very important to access them before choosing the
right cover and to not overspend on car insurance.
Acko General Insurance Ltd.Unit No. 301, 3rd Floor, E wing,
Lotus Corporate Park, Off Western Express Highway, Jay Coach,
Goregaon East, Mumbai 400063.Email: [email protected]Phone:1800 266 2256 (toll-free)We’re Socially Active
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CIN:U66000MH2016PLC287385
IRDAI Registration No:157
Category:Non-Life Insurance
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