There are different types of issuance for cars . Two most common insurance are comprehensive insurance and third party insurance. But what do these insurance means? And what are the differences between both these two insurance?. These are the questions raised by people while taking a car or doing insurance for the car. So before knowing this it is important to know what these issuance means .
Comprehensive insurance is very important for the car. It takes care of all the damages which were done by own or third party fault. It includes fire, accident, theft and natural calamity. But every insurance company and insurance has some policy which includes some rules. According to those terms insurance will be sanctioned by the company. It also includes some rules under which it says in few circumstances insurance companies are not responsible.
Third party car insurance
If we’re not going for comprehensive car insurance policy a third party car is insurance is the most basic, and legal form of car insurance policy you will need. As the name suggests, this will only protect us from damages and losses caused to a third-party and won’t cover for our own damages.
|Third Party Car isurance||Comprehensive car insurance|
|Cover Details||It only offers coverage for third party damages and losses such as due to an accident or collision, we hurt a third party person or her/his vehicle, third party property, Additionally, it also includes a personal accident cover to protect you from personal injuries or death.||This coverage not only protects us against damage but also losses caused to any third person , and also covers damages and losses to us and our car. Like, if our car faces damages from flood then our car will be covered in this insurance policy.|
|Benefits||It protects our car in case of an accident, hurt someone on the road, or damage one’s vehicle/property. This way, we don’t need to pay any single penny from our pocket.||It can protect both damage to our car and third party damage as well. So it doesn’t matter what we know we won’t end up in any losses! Additionally, we can also benefit from an NCB (No Claim Bonus) during car insurance renewals for every year we don’t make a claim!|
|Limitations||It doesn’t cover damages to our own car.||It is slightly more expensive in comparison from third part insurance.|
|Customization||No customizations are possible under this car insurance plan,||We customize our car insurance plan by adding specific add – ons and covers such as the zero depreciation cover engine and gearbox protection, return to invoice breakdown assistance, ect.|
|Premium Price||Its cheaper than a comprehensive car insurance policy the premium price here is predetermined by the IRDAI based on the car cc||Well it’s expensive in price, but the premium here is based on many more factors such as city of driving, which car, make, and model, add – ons we opt for.|
|What should I go for ?||If we are currently driving an old car, or using it rarely then a third party basic plan is sufficient to have.||Well it is quite expensive but, this plan will give more and complete benefits and coverage. Even if the insurance is not claimed for a year then also the owner will enjoy no claim discount during renewals.|
There how we can differentiate both the plans and choose a plan according to budget and comfort. But we need to choose according to its features, not its price, so that it will give more benefits in future.