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The Pros and Cons of Third-Party Car Insurance

The Pros and Cons of Third-Party Car Insurance

If you own a car, you already know that third-party insurance meets the minimum legal requirements for motor insurance. Also called third-party liability insurance, this motor policy provides coverage against liability for third-party property damage or physical injury.

The following lines discuss third-party insurance advantages and disadvantages, highlighting its coverage that may prove helpful for car owners.

Third-Party Car Insurance - Pros

  • Ensures Legal Driving —The Motor Act (1988) has made it legally necessary for all car owners to have this policy so they can freely drive without worrying about having to pay heavy fines.
  • Provides Coverage from Third-Party Physical Injury - One of the main advantages of third-party insurance is that your insurer will be responsible for providing financial compensation for the medical expenses of a third party in case your car meets with an accident that causes physical injury to that third party.
  • Covers for Third-Party Property Damage - A third-party car policy reimburses the third party for any vehicular or property damage your vehicle may have incurred.
  • Provides Coverage for Bodily Injury of the Owner-Driver - One of the third-party car insurance benefits is a Personal Accident cover. It will offer coverage for medical expenses or death (of owner-driver) that occur as a result of accidents involving the insured car.

Third-party Car Insurance - Cons

  • No Coverage for Own Damage - One of the main disadvantages of third-party insurance is that it does not provide financial coverage for your vehicle in case of an accident.
  • No Coverage Against Natural Disasters - This policy also does not cover vehicular damage from natural disasters like floods, landslides, earthquakes, etc.
  • No Add-On Options for Enhanced Coverage - Another disadvantage of third-party car insurance is the inability to include add-ons to enhance financial protection.

Who Should Buy Third-Party Car Insurance?

So, is third-party insurance enough for a car? Well, this motor policy is a comprehensive cover for protection against third-party claims for financial compensation. In fact third-party policy is ideal for:

Those Who Want to Adhere to the Law

Since it is mandatory by law to own this policy, not having one can lead to heavy fines and even imprisonment. To avoid such penalties, you must purchase this motor policy.

Those who Own Not-so-new Cars

If your car is more than 5 years old, you will not be able to enjoy add-ons like Nil Depreciation, which can cause financial losses in case of accidents or regular wear and tear. Opting for a third-party may be more economical in case of such cars.

Those Who Have Limited Budget

Since the premium for this policy is lower compared to other car policies, choosing this motor plan will not gravely affect your overall budget.

Those Who Travel a Lot

If you use your car for commuting on a daily basis, chances of accidents are high. Selecting this plan for your vehicle will mean that you can have peace of mind that you are financially covered when having to compensate third parties after an accident.

These third-party car insurance advantages and disadvantages will help you come to a decision whether or not this plan alone is sufficient for protecting your car financially. hat the.

Also Read: Third Party and Comprehensive Car Insurance Policy Compared

Conclusion

Opting for third-party car insurance not only makes you adhere to the Law of the country, but also provides you financial coverage when compensating a huge amount to the third-party for physical injury or for damaging their property.

Moreover, you are covered under this policy too, as you can avail medical treatment up to ₹2 lakhs under this policy in case you are injured in an accident. But, if you want more from your motor policy, you can always opt for a comprehensive car plan.

Reliance General Insurance offers car insurance policies that are tailor-made for your financial coverage at competitive rates, and our claims process is simple and hassle-free.

Frequently Asked Questions

What is the validity period of third-party car policy?

A third-party policy is generally valid for a year. However, it is legally mandatory to purchase a 3-year third-party policy for a new car.

Is third-party better than comprehensive car insurance?

No single policy is better than the other; each comes with its own advantages and disadvantages.

A third-party policy is mandatory and is helpful if you are looking for an affordable car policy for financial coverage from third-party compensation, and comprehensive plans are designed to offer you extensive coverage, provided you have the budget to do so.

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