Comprehensive and third-party car insurance policies are the two most popularly bought motor insurance policies in India. Knowing the difference between these two types of car insurance policies will help you choose the right policy that suits your requirements. Having the right kind of motor insurance policy will keep you financially equipped for any emergency.
What is the difference between comprehensive and third-party insurance?
The main difference between third-party and comprehensive insurance is the type of coverage offered. While third-party insurance only protects you against third-party damage and losses, comprehensive car insurance protects you against your own damage.
In India, choosing the right type of vehicle insurance is important. After all, obtaining at least basic insurance that covers third parties is mandated by law. Not having one could end in fines for traffic violations and possibly a suspension of your driver's licence!
What is third-party car insurance?
A third-party car insurance policy is mandatory for all car owners. It covers damages caused to a third party or their property due to an accident involving the insured car. IRDAI fixes the third-party insurance premium every year, depending on the engine's cubic capacity. Driving without a valid third-party car insurance policy can lead to heavy traffic penalties and even imprisonment.
Hence, every car owner must buy/renew third-party car insurance to drive on Indian roads. However, third-party insurance does not extend coverage for a policyholder's own vehicle damages or physical injuries.
What is a comprehensive car insurance policy?
A comprehensive car insurance policy combines the advantages of a third-party policy and own damage plan. You get extensive financial coverage against third-party liability and own damages in case of an accident. The policy also covers the insured against personal accidents.
You also have the benefit of choosing additional covers to enhance your car insurance policy. You can choose from covers such as engine protection, consumables, zero depreciation, and roadside assistance.