Difference between third party and comprehensive car insurance

What Is Third-Party Insurance? 

According to the Motor Vehicles Act 1988, third-party coverage is a fundamental and required car insurance policy. It protects against monetary losses from damage to a third party’s property but doesn’t cover harm to you or your vehicle. Make sure to carry out the process of car insurance renewal online to avail of the coverage at all times.

What Does Third-Party Car Insurance Cover? 

The coverage list included in a third-party car policy is as follows: 

  • Protects against legal liability for damage to third-party property.
  • Covers payment for passing away or injury to third parties caused by your vehicle.
  • Offers protection against compensation for accidental passing away or disability of the vehicle’s owner or driver. Claims are subject to terms and conditions set forth under the motor insurance policy. *

What Does Third-Party Car Insurance Not Cover? 

  • Driving without a valid license holder: Claims aren’t covered if a learner’s license holder drives alone. *
  • Driving Under The Influence: Damage to your car due to intoxicated driving may not be covered. *
  • Self-Vehicle Damage: This car policy only covers harm to third parties, not damage to your vehicle. *

What Is Comprehensive Car Insurance? 

Comprehensive car insurance is a widespread and fundamental policy that offers financial assistance for damage to you or your vehicle in various situations.

What Does Comprehensive Car Insurance Cover? 

Insurance for accidental passing away or disability for the vehicle’s owner or driver 

Third-party-caused loss, such as 

  • Damage to property 
  • Either the owner or the driver passing away
  • Additional harm brought on by the following causes: 

– Accidents 

– Floods, hurricanes, storms, other natural disasters or unfavourable weather conditions. 

– Explosion, fire, or self-ignition-related damage. Claims are subject to terms and conditions set forth under the motor insurance policy. *

What Does Comprehensive Car Insurance Not Cover?

  • Driving Without A Valid License: Claims are not covered if the owner drives without a valid license.
  • Drunk Driving: Claims for accidents caused by drunk driving are not paid.
  • Negligence: Damage caused by negligence, such as theft during a natural disaster, is not covered.

You can buy new car insurance online for both types of coverage. Additionally, you can also manage it using the best car insurance app.

Differences between the two:

Parameters Third-Party Car Insurance Policy Comprehensive Car Insurance Policy 
What it does do? Protects against financial loss due to damage to other cars that your car causes.Provides comprehensive coverage for both your car and third-party liabilities.
Benefits Ensures your safety if you unintentionally cause damage to a person’s car or property.Benefits include additional NCB benefits during annual car insurance renewals and coverage for damage to your car and other vehicles. *
Coverage Injury to a personProperty damageDamage to a third party’s vehicle as a result of an accident or collisionPersonal accident coverageClaims are subject to terms and conditions set forth under the motor insurance policy. Loss to youDamage brought on by natural calamities like floodDamage to your carDamage to another driver’s carClaims are subject to terms and conditions set forth under the motor insurance policy.
Premium  Pre-determined premium amount by IRDAI based on the vehicle and may be significantly less expensive than comprehensive car insurance. #High premium and depends on various factors related to your car 

Get insured anytime, anywhere! Check out Bajaj Allianz General Insurance website to learn more and download the app now.

*Standard T&C Apply

#Visit the official website of IRDAI for further details.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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