When talking about car insurance, there’s a huge difference in the coverage you get based on the plan type you choose. All car owners in India require third-party insurance since it’s a legal requirement. It protects you against third-person liabilities, i.e., damage your car causes to other people, cars, and property. A comprehensive car insurance plan covers third-party liabilities and own damage, such as damage from road accidents, theft, fire, and natural and man-made disasters. To understand which car insurance policy is best for you, it is important to understand the key differences between comprehensive vs third party-car insurance in detail.
| Car Insurance Policy Comparison | Comprehensive Insurance | Third-Party Insurance |
Coverage | It covers damage caused to others (cars, property, and people) and own damage under one plan. | It only offers coverage against damage caused to other people, vehicles, and property. |
Legal Requirement | Comprehensive car insurance is not mandatory as per the Motor Vehicles Act of India. | Having third-party car insurance is a mandatory requirement if you wish to drive on the roads of India. |
Cost | The cost of premium in full comprehensive car insurance is higher since it offers more coverage. | The cost is lower. The price is determined by the IRDAI according to the cubic capacity of cars. |
Add-ons | Several add-ons, including engine cover and zero depreciation, are available with comprehensive car insurance. | No such add-ons are available with third-party car insurance. |
Best For | Comprehensive car insurance is best suited for new car owners or those who seek full coverage. | Third-party car insurance is suitable for old vehicle owners and budget-conscious people. |
1. Vehicle Age: If you own an older vehicle, third-party insurance is suitable. However, if you have the latest car model, comprehensive car insurance would be best.
2. Budget: Third-party insurance is more affordable and best suited for those on a budget. On the other hand, comprehensive insurance costs more but offers more coverage.
3. Usage: Comprehensive car insurance coverage would be better if you use your car frequently for longer trips. However, if you use your car less frequently and for shorter journeys, third-party car insurance would be sufficient.
Comprehensive car insurance and third-party car insurance are different in terms of coverage. In third-party insurance, damage done to others is covered. However, own damage coverage is not available. On the other hand, in comprehensive car insurance, both own damage and third-party damage are covered.
Regardless of whether you’re looking for the cheapest comprehensive car insurance plan or a third-party car insurance plan, shop around and get one from a reputable online insurer.
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