What is third party car insurance?
While purchasing a car insurance, you need to consider several factors. The type of coverage you seek is one of most important aspects you must look out for. Well, you must have heard of third-party car insurance. This is different from a comprehensive policy, and offers different benefits altogether. Here, you will come across all you should be knowing about third party car insurance policies.
When you buy a third-party car insurance plan, you get a coverage against legal liabilities that arise as a result of injuries caused to a third party. In these situations, the fault lies with the policyholder. The damages and injuries that are caused by your vehicles are covered, that are caused to any third-party person or property. According to the Motor Vehicles Act, 1988, it is compulsory for all the motor vehicle owners to get a third-party insurance when they buy a vehicle in India. Therefore, when you buy a car policy, make sure that it comes with a third-party coverage.
Benefits of having a third-party coverage
With a third-party coverage, the owners of the vehicle remain insured against any legal liability arising due to accidents. These liabilities include bodily injury or death of another person, when the insured vehicle is involved in an accident. The Motor Vehicle Act states that one can file a third-party claim under the ‘no fault liability claims’ category. However, you should be aware of the exclusions of these policies.
The policy will not be covering any damage that has been caused to the automobile. Besides, it will not cover the damage to any of the belongings of the third party that may be inside the vehicle. You too, will not get any coverage if your vehicle is damaged or stolen. This applies to all your belongings inside the car as well.
Difference between comprehensive coverage and third-party coverage
Several aspects determine the pros and cons of these two kinds of policies. Evidently, you need to understand these aspects, so that it becomes easier to analyze, compare and evaluate the benefits before you make a decision. These factors include:
The value of your vehicle
In case you are owning a low-value vehicle, it is recommended to buy a third-party insurance. This indicates that you can easily manage the repairs required as a result of any possible damage. Comparing the costs, it appears that you will find it economical to pay the bills for repairing the vehicle, than to pay the high premium associated with a comprehensive coverage. However, if you have bought an expensive car, or if it is a brand-new vehicle, you should get a comprehensive coverage.
When you buy a third-party coverage, you will get protection against the damage caused to any other vehicle. Besides, it includes bodily injuries that may be caused during the accident to a third party. With certain insurance providers, you may have to pay a little more premium for third-party coverage. However, it will not provide coverage for the damages that your own car might suffer.
When you buy car insurance online, you might want to buy a comprehensive car insurance plan. These plans offer a wider coverage and include the third-party liabilities too. As the coverage is broader, comprehensive policies are more expensive.