Bought a new car? —Yes?
Now, it is time to get car insurance to protect your new purchase from loss or destruction. At this point in time, you will be presented with two options, and you will have to choose between comprehensive car insurance or third-party cover in car insurance.
Confused? Don’t worry. We are here to help you understand these terminologies better. Let’s begin.
What is Third-Party Cover in Car Insurance?
Third-party car insurance is the basic minimum car insurance coverage mandated by law. Legally speaking, you are liable to recompense a third-party (i.e. another driver on the road) in case of an accident. This compensation is capped at ₹7.5 lakhs for damages. However, in case of death, permanent injury, or disability caused due to the accident, the cover is unlimited.
Thus, we see that the third party is protected against damages caused by you while driving on the road. In case of untoward incidents, your insurer will help you provide the third party with fair compensation for their losses.
But is third-party coverage in car insurance enough?
This is where things get tricky! An online car insurance policy third party will not provide protection or compensation for the losses incurred by you during an accident. Also, there can be many other reasons for loss – like flood, fire, theft, vandalism etc.
In all of these cases, you, as the vehicle owner, will be left without any recourse to insurance if you only buy third-party insurance covers. Hence, it is important that when you buy your car insurance online, you look for both standalone own-damage and third-party cover for 360-degree protection.
Is Comprehensive Car Insurance Really Necessary?
Well, if you only want to do the bare minimum, so you have not disobeyed the law, then having a third-party insurance cover is enough. However, this creates a big loophole in your four-wheeler insurance.
As stated above, third-party covers leave you completely vulnerable to your own losses. From minor issues like replacing car parts to major grievances, you will have to pay for everything out of your pocket. It is not the case with comprehensive insurance coverage. A comprehensive insurance plan clubs the benefits of standalone own damage and third-party cover.
Second, third-party car insurance cannot be enhanced by adding extra riders. On the other hand, when you buy a comprehensive car insurance cover, you can easily add on riders to increase coverage and give yourself holistic insurance cover.
Some add-ons available under comprehensive car insurance are –
- Roadside Assistance Cover
- Engine Secure
- Consumables Expenses
- Zero Depreciation Cover
- Return to Invoice
- Emergency Transport and Hotel Expenses
- Loss of Personal Belongings
- No Claim Bonus (NCB) Protection Cover
- Passenger Insurance Cover (for commercial vehicles)*
[Note: None of these options are available on online car insurance policy third party.]
*For example, passenger insurance cover may be beneficial if you are using your vehicle for commercial purposes.
Summary
To sum up, protecting other drivers and yourself from unforeseen events is important. While a third-party car insurance will do the former, and recompense third-party drivers from accidents that occur on the road, it will not protect you from any damage or loss. Hence, it is wiser to go for a comprehensive car insurance policy that will provide dual protection and save you from future heartaches.
Whether buying your car insurance online or speaking with an agent to get the best quote, always ensure you are getting the best protection for yourself and your family members.
