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Most car insurance buyers, especially those buying for the first time, often get confused between car insurance 3rd party vs comprehensive plans. While both types of car insurance offer financial protection, they have huge differences in terms of coverage, cost and benefits.
In this guide, we will help you understand the difference between comprehensive policy vs third-party car insurance in detail.
Factors
Comprehensive Car Insurance
Third-party Car Insurance
Meaning
Covers damages caused to your car and damages caused to other cars, people or their property by your car.
Designed to offer financial protection against damage caused to other cars, people or their property by your car.
Is it Mandatory?
No.
Yes.
Coverage
Combines own damage and third-party damages (injuries, loss and even death) under one plan.
Only covers third-party damage and legal expenses for losses caused by your insured car.
Add-ons
A wide range of add-ons are available.
Add-ons are not available.
Premium Rates
Higher premium rates due to extensive coverage.
Premium rates are lower and decided by the IRDAI.
Scope of Customisation
Highly customisable plans.
No scope for customisation.
Comprehensive car insurance is designed to offer complete protection for your car against financial losses. It offers coverage for –
Comprehensive car insurance includes coverage for damages caused to the insured car and third-party damage (including injuries and death) caused by the insured car – all under one plan.
This allows you to get all-around coverage and fulfil your legal obligation as a car owner under one plan rather than buying and maintaining multiple plans.
You can customise your comprehensive car insurance plan using a wide range of add-ons. These are optional covers (paid) designed to enhance the coverage of your existing policy.
Some of the most popular car insurance add-ons include Engine Protection Cover, Total Loss Cover, Roadside Assistance Cover, etc.
Comprehensive car insurance offers protection against theft. Simply put, you can claim up to your car’s current market price in case it gets stolen or damaged beyond repair.
Comprehensive car insurance covers damages resulting from a wide range of natural and man-made calamities. These include earthquakes, floods, thunderstorms, hailstorms, cyclones, riots, strikes and more.
The key difference between comprehensive and third-party insurance lies in their extent of coverage. A comprehensive car insurance policy is known for the all-around financial protection it provides. In simple terms, you can cover self-damages as well as third-party liabilities under a single policy.
Comprehensive car insurance offers financial assistance for a range of unforeseen events, helping you maximise your savings and reduce out-of-pocket expenses.
You get the flexibility to customise your plan based on your exclusive requirements. This means you can decide on the type of coverage, sum insured amount, policy tenure, and so on.
A comprehensive car insurance plan can also enhance your car’s resale value. This is because the insured vehicle can be repaired and maintained in a timely manner without any financial challenges.
Comprehensive car insurance offers greater peace of mind and allows you to drive worry-free by covering the cost of potential repairs and third-party damages.
Third-party car insurance is a type of motor insurance policy designed to cover third-party damages, losses, injuries, and deaths caused by the insured vehicle.
According to the Motor Vehicles Act of India, third-party car insurance is compulsory for every car owner regardless of the type and age of the car. Failure to meet this legal requirement can lead to hefty fines, penalties and other consequences.
Note that the IRDAI decides the premiums of third-party car insurance based on the car's engine or battery capacity.
Third-party car insurance is mandatory for every motor vehicle owner in India. To avoid any fines and penalties, you must carry your car insurance certificate when driving your vehicle.
Offers coverage for third-party losses caused by your vehicle. It allows you to compensate the third party for the damages they have suffered due to your vehicle.
Third-party car insurance premiums are pre-decided by the IRDAI based on factors such as the car's engine or battery capacity.
The main benefit of third-party car insurance is that it is super affordable. Any vehicle owner with a limited budget can consider buying it.
The purchase process and management of third-party car insurance is straightforward. You can buy a suitable policy in minutes without going through a lot of requirements and paperwork.
Third-party car insurance takes car of any legal troubles that arise from causing damage to another party. It makes sure you don’t have to pay large sums of money out of your own pocket in case of an accident.
● Low premiums.
● Helps in meeting legal requirements.
● Does not cover the damages of the car.
● Higher out-of-pocket expenses since you need to pay for repairs/replacement of your car.
● Covers third-party and own damage.
● Also covers theft and damage from man-made and natural disasters.
● Covers personal accident and injuries of the owner-driver.
● Customisable using add-ons.
More expensive
Reliance car insurance is tailored to offer complete financial protection to you and your vehicle. Whether it is a personal accident or tragedy involving a third party, we have got you covered for every type of emergency.
At Reliance General Insurance, you don’t have to compromise on your budget to enjoy comprehensive coverage. Our car insurance premiums start from just ₹238* per month. You can also reduce your premiums further using available discounts and rewards.
We offer a simple and quick claims settlement process to provide you with seamless financial assistance whenever needed. You can choose between cashless or reimbursement claims based on your preferences. You can also file a claim online using our website or the Reliance Self-i mobile application.
With Reliance car insurance, you gain access to 10,000+ network garages where you can enjoy cashless services. We have a broad network of trusted auto repair facilities known for their high-quality services.
We offer 20+ car insurance add-ons along with EV-specific add-ons for electric cars to help you enjoy personalised coverage. You can choose from Zero Depreciation Cover, Engine Protection Cover, Roadside Assistance Cover, Consumables Cover, Total Loss Cover and many more.
Apart from all the benefits, you can receive up to 80% discounts on buying Reliance car insurance plans. Not only that, you can also enjoy various perks and rewards for safe driving.
The choice between comprehensive vs third party insurance depends on your vehicle’s make-model, value, your location and risk profile among other factors. While third-party car insurance is mandatory by law, upgrading to a comprehensive car insurance policy is recommended for newer cars.
A Reliance car insurance plan is carefully tailored to offer complete protection against potential financial losses and risks. Whether you are looking for comprehensive or third-party car insurance, you can buy your desired car insurance policy online at affordable rates. Get your car insurance quotes today!
Multiple factors are taken into account when deciding between comprehensive and third-party car insurance. If you have purchased a new vehicle and are looking for extensive protection, a comprehensive car policy is ideal.
However, if you are on a budget and your vehicle has a low-risk exposure, you can buy a third-party insurance policy.
Old/second-hand vehicle owners, seasonal drivers and infrequent car users can invest in third-party car insurance to meet legal requirements. For regular drivers, comprehensive car insurance is highly recommended.
If you already have a third-party car insurance with enough validity, you can invest in a Standalone Own Damage car insurance policy to cover own damages.
However, if your third-party insurance is nearing its expiry, consider upgrading to a comprehensive car insurance plan for complete financial protection.
Yes. Car insurance is compulsory for every four-wheeler, regardless of age and registration year. Contact our experts to learn more about car insurance for used/second-hand cars.
The cost of comprehensive car insurance is determined based on several factors. These often include the type of coverage, car’s make/model/age, IDV, location and so on. You can use our car insurance calculator or get in touch with our team to get an estimate of your desired insurance policy.
Disclaimers: *T&C Apply. For more details on risk factors, terms conditions, brochure, and exclusions, please read the policy wording and CIS carefully before concluding a sale.
Premium: The premium mentioned for car Insurance excludes taxes for the private car model Maruti Suzuki Alto 800 with a cubic capacity of less than 1000 cc for a 1-year Own Damage Insurance policy for an IDV of ₹2,34,728. The premium used is 2,853/year as of 1 March 2023 and then converted into a per-month basis, which gives us ₹238/month (2,853/12).
Discount: The discount varies basis vehicle specifications, No Claim Bonus discount and Geographical location of the vehicle to be insured. Discounts have been calculated on the basis of the rates prescribed under erstwhile Indian Motor Tariff. Discounts are applicable only to the Own Damage section and discounts may vary as per the vehicle make, model, RTO, age of the vehicle and addition of add-ons like Reliance Limit Sure-Pay As You Drive.
Comprehensive Car Insurance/Car Insurance UIN: Details mentioned here are for the product- Reliance Private Car Package Policy. UIN: IRDAN103RP0010V02100001; Reliance Private Car Policy – Bundled, UIN: IRDAN103RP0007V02201819; Reliance Private Car Policy- Standalone Own Damage UIN- IRDAN103RP0001V01201920; "A" Policy for Act Liability Insurance ( Pc /Tw/Commercial ), UIN: IRDAN103RP0003V01200102; A" Policy for Act Liability Insurance (Private Car) – 3 years, UIN: IRDAN103RP0003V01201819.
Third-Party UIN: Details mentioned here are for the product- "A" Policy for Act Liability Insurance ( Pc /Tw/Commercial ), UIN: IRDAN103RP0003V01200102; A" Policy for Act Liability Insurance (Private Car) – 3 years, UIN: IRDAN103RP0003V01201819
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