Comprehensive Cover vs Third Party Car Insurance-which is better?

Car Insurances 324 views

Getting the insurance for your car has become all the more important in today's times of growing accidents and natural disasters like earthquake, hurricane, as well as riots. Car insurance, in simple terms, is the cover that insures you against the financial risks arising out of damage to the vehicle due to the incidents mentioned above. So, don't be left behind in taking the insurance policy for your car and enjoy a tension-free ride. Car insurance can be divided into Comprehensive Cover and Third Party Car Insurance.

Comprehensive Cover

Comprehensive car insurance policy provides full protection against the damages to your car due to accidents/collisions. The extensive scheme provides cover in case of damages to car, theft of the vehicle, personal accident cover, legal liability to third party, destruction, glass damage, damage from falling missiles or other objects, fire incidents, among others. You can make the policy even more comprehensive by choosing add-ons such as accessory cover, zero depreciation cover, medical expenses, engine protector, etc. In the absence of comprehensive cover, you won't be able to make a claim if the damage has been caused to your car not due to collision. With holistic coverage, the policy ensures a more or less stress-free life for the policyholder.

Exclusions from comprehensive cover

However, there are certain things which have been excluded from the purview of comprehensive cover. These include ageing, wear and tear of the vehicle, depreciation, damage to tyres and tubes, damage caused while the driver runs the car without a valid driving license, drunken driving, drug-influenced driving, mechanical or electrical breakdown, damage inflicted by war, etc.

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Third Party Insurance

With third party car insurance, you can get the cover against the legal liability to a third party caused due to your fault. This insurance provides cover for any damage, death or injury inflicted by the insured to another person, or damage to any property. As per the Motor Vehicle Act, a third party claim is applicable under the category of “no fault liability claims”.

Exclusions from Third Party Car Insurance

As the name suggests, third party insurance applies for the damages caused by you to other person or the property. So in true sense of its definition, you can't get the cover for the cost of damages caused to your car and your belongings during the accident. Even if the car and your belongings get stolen or destroyed, you won't get the cover with this policy.

Table showing comparison between Comprehensive Cover and Third Party Insurance on select parameters

ParametersComprehensive Cover Third Party Insurance
Age of the carOn expensive cars, comprehensive car can be of great useOn low value for car, third party insurance is advisable
CoverageCoverage is extremely high as it covers the damages caused to you your vehicle, as well as the provisions for third partyCoverage is limited to the damages caused by your car to other vehicle or property
ExpenseIt is more expensiveLess expensive

You have all the coverage and no-coverage elements of both comprehensive car insurance and third party car insurance policies to choose one of them. May be you can opt for both providing the finances do not go haywire.

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Bajaj Finserv 10.99% - 16.00%
Fullerton India 14.00% - 33.00%
HDFC Bank 11.25% - 21.25%
ICICI Bank 10.99% - 18.40%
IndusInd Bank 10.99% - 16.00%
Kotak Bank 10.99% - 20.99%
RBL 13.00% - 18.00%
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Tata Capital 10.99% - 18.00%
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DHFL 9.05% - 9.95%
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