In India, it is mandatory to have third-party insurance for your vehicle; a reason why many car owners even bother with getting one. What they do not realise is that an insurance policy's main job is not to save you from hefty penalties but to ensure that you have adequate protection in case of a mishap. A third-party insurance policy will save you only from third-party liabilities. Remember, accidents do not come with prior notice and can cause huge damage to the driver and the insured car as well. Therefore, for complete protection, it is important to get the right insurance policy such as comprehensive car insurance. A comprehensive plan comes with several benefits that are not available in third-party insurance. It gives additional protection in case of an accident or an unfortunate event.
Unlike comprehensive car insurance, third-party insurance is never enough; it is a basic policy plan that does not offer protection to the policyholder in case of own damage. Let us take a look at both types of insurance policies in detail:
- Third-party car insurance
Mandatory third-party car insurance offers protection only in case of claims of others. The coverage includes property damage or bodily injury liability of a third party. But it will not cover the damages to you or your vehicle. Hence, this insurance will protect you if there is damage to the property or the vehicle of a third party only. This can be quite burdensome and heavy on your pocket because it will not provide any coverage if there is damage to your car due to an accident.
2. Comprehensive car insurance
Comprehensive car insurance will provide complete protection against all the damages to both parties involved in an accident. It includes several benefits and comes with many add-on options to widen the coverage. It is an exhaustive plan covering third-party liabilities as well as own damages. It is also applicable in events that are out of your control such as natural calamities and manmade disasters.
Why comprehensive car insurance is a better option
Let us take a look at the benefits of comprehensive car insurance cover over third-party insurance and how it affects your coverage. You must keep in mind that these benefits are not available in third-party insurance.
- Extensive coverage in case of damage
The biggest advantage of comprehensive car insurance is that it covers all kinds of damages to the vehicle such as personal accident, third–party liabilities and theft. Besides, the cover also protects from damages due to natural and manmade disasters such as fire, strikes and riots. This end-to-end coverage will save you from costly repair works in case of a mishap. The premium for a comprehensive policy is slightly higher as compared to that of third-party car insurance but the coverage is extensive. It is the best way to protect the vehicle and avoid huge expenses due to an accident.
2. Peace of mind
A comprehensive car insurance policy allows you to be stress-free and enjoy your car with peace of mind. It lets you claim the benefits even if it was the other driver's fault, in the event of an accident. With a comprehensive policy, you can prevent being tried in court for any damages to the third party and your family will receive a corpus if you pass away in an accident. Without a comprehensive cover, the family may have to face financial troubles. Also, if you do not own the right insurance cover, you may have to use your personal savings to manage the repair cost of the car. Even, in case of an accident that requires your hospitalisation, you will have to bear all the costs by yourself.
3. Optional riders
A comprehensive cover comes with many optional riders that provide additional coverage at a cost. The riders are designed to enhance the cover for a nominal amount. Each rider has specific coverage. You can buy riders for no claim bonus retention, personal accident cover, daily cash allowance, engine protection cover, passenger cover and zero depreciation cover. You can customise the policy to fit your needs using the riders. These covers are not available with third-party car insurance.
4. Quick and convenient service distribution
With comprehensive car insurance, there is a wide distribution network of the company that is of utmost help. You can avail of quick roadside assistance in case of an accident, helping you stay calm and stress-free in the face of a crisis.
5. Coverage against theft
If you lose your car to theft, you may think that the insurance policy will compensate you for the same but it is applicable only if you have comprehensive car insurance. Third-party insurance does not offer any cover against theft.
Choose wisely
Your reason for purchasing an insurance policy should not be just to meet the legal requirement but to ensure the protection of others and yourself in the face of an accident. Not having the right policy cover can cost you big, in terms of money and stress. Third-party insurance will never give you the kind of protection a comprehensive plan can give. You have spent a huge amount of money on buying the car, now you must spend enough to keep it secure and protected at all times.
With the right long term car insurance cover, you will be able to enjoy your car without worrying about the cost of repairs or damages in case of an accident or event. Whether it is a third-party liability or a personal accident, you will be covered under comprehensive car insurance. It is a wise choice for all car owners. Adding riders to the insurance policy is a great way to enhance the cover and reduce the out of pocket expenses in case of damage. You can choose the riders keeping your requirements in mind and they can be purchased at any time. Remember to renew the insurance policy regularly to ensure that you are covered at all times. If you fail to renew the policy, it could lapse and your claim may not be accepted by the insurance company.
