Which Is Best Third Party Insurance Or Comprehensive Car Insurance?
Consider a scenario in which you were involved in an accident that did not cause significant damages to your car. Would you use your right to claim under auto insurance? You should be aware of the fact that filing a claim would impact the No Claim Bonus (NCB) that you have accrued over the years. It may also have a negative effect on your renewal premiums.
Yes, deciding as to when you should claim insurance and when you shouldn’t is tricky. But here, we provide you all the details you need to know to make a wise decision at the time of a mishap.
What is Third-Party Car Insurance?
It is a compulsory car insurance that you avail along with purchasing a new car. Third-party car insurance plan is a kind of four-wheeler insurance that provides a financial shield to you in the event of injuries or damages to another person caused by car, their car or other vehicle or property.
This compensates only for third-party injuries and their property damages. It’s the Vehicle type of insurance that people opt for just because it’s mandatory.
- Death or bodily injury to a third party
- Damage to third party property
- Accidental Death of the insured vehicle owner/driver
- Permanent Total Disability of the insured vehicle owner/driver
What is Comprehensive Insurance?
The comprehensive car insurance policy covers more than just covering you financially against damages caused by car to another person’s property or car or self. What’s more, any circumstantial damage occurred by your car such as natural disasters, accidents, are also under coverage by your car insurance service provider.
I would suggest you go for comprehensive Insurance because
- In addition to third-party liability coverage’s, it covers all kinds of damages caused to your vehicle because of accidents, fire, theft, natural calamities, etc.
- It covers you, the third party and both of your vehicles. So, it keeps you protected in all cases.
- In the event of loss or damage, you need not pay for the high expenses from your pocket. (The expenses depend on the type of policy that you buy)
What is Included in a Third-Party Car Insurance Plan?
Now, you must be thinking about the inclusions in third-party car insurance. Under a third-party policy, the insurer covers the liabilities, in case the policyholder is responsible for any injury or loss to a third party.
The insured person is termed as first party, the insurer or the insurance provider is termed as the second party, and the person who is injured is considered as the third party.
When you buy a car insurance plan, remember to compare multiple plans online. To know the inclusions of third-party insurance in details, let’s have a thorough look at the coverage offered by this policy:
- Property Damage: In case you have caused severe damage to the property of a third party in an unfortunate accident, then you don’t need to worry about the expense arising from the mishap. Third-party insurance ensures that the insurer will pay for the damages to the third-party. Thus, the insured can safely step out of the complicated situations of accidents.
- Death: If you are involved in an accident, which leads to the death of a third party, then you are solely responsible for the unfortunate loss that nothing can make up for. In such cases, you do not have to worry, as your insurer has got your back. Whenever there is a death situation, the claims are judged as per the court tribunals. The court determines the compensation as per the consequences of unfortunate loss and earning capability of the third party.
- Partial and Permanent Disability: Sometimes, accidents lead to disability. If the third party is subjected to partial disablement like fractures and other disablements, which can be recovered with time, then the insurer offers necessary coverage in terms of medical expenses to the affected individual(s). But, if the third party is subjected to permanent disablement, then the insurer offers a pre-assured sum to the third party.
- Bodily Injuries: No matter how intense the injuries of a third party are, medical coverage is offered for all types of bodily injuries. Reputed insurance companies understand that the accidents are caused unfortunately and these events cannot be controlled. Thus, insurers effectively reduce the stress of the insured by offering them the financial support.
Insurance most car owners have a single doubt third-party insurance or comprehensive insurance. Which one to buy to answer this question you need to know the difference between the two plans. Also called the TP policy the third party car insurance is the liability only plan for the road accident if you injure someone or damaged. Their property they could claim on your TP policy a comprehensive. Car plan is a bigger plan with two components owned damaged cover and TP policy.
So with this policy, you can recover damages to your own car as well as to a third party. What’s more, is covered with the comprehensive plan a comprehensive plan covers more than just road accident-related damages. You can claim for a broken windshield during a storm car theft fire-related damages floods or other natural disasters – TP policy. Won’t cover you for any of this which one’s more expensive obviously TP policy is cheaper and prefixed by insurance authorities in fact insurance regulator AIA Dai fixes. TP premium for different vehicles on the basis of their engine capacity it has revised every year. So you would have to pay more for a comprehensive policy. Because it covers your car’s losses to basic owned damage premium varies on your cars make model your car’s age and in short declared value add-ons like zero depreciation in the engine, the protector is charged extra final verdict. What’s better if you drive your car regularly if your car is fairly new or if it is slightly expensive. The car you should always consider comprehensive policy over third party policy by right not less.
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