When is the right time to switch from Third Party to Comprehensive car insurance

Posted on: Feb 10, 2022 | | Written by:

When is the right time to switch from Third Party to Comprehensive car insurance

Published on February 9, 2022. EST READ TIME: 3 minutes

Owning a four-wheeler has often been considered a prized possession and a sign of affluence. Buying a car is still regarded as one of the major milestones in life. It requires a lot of research and analysis before you finalise the car that suits your needs the best. Over the past few years, owning a car has become more of a necessity than luxury and comfort. From regular commute to the office, a trip to the nearby stores to get groceries, etc., people end up using cars. Ever since the pandemic struck, a car has become a preferred alternative to commuting as it serves as a ready means of transportation in case of any unfortunate emergencies and shields you from the crowd. While the importance of having a car has increased over the years, ensuring its safety and protection is paramount. As per Motor Vehicles Act, it is mandatory to have vehicle insurance for all motor vehicles plying on the Indian roads. Hence it is vital to understand the importance of buying the right car insurance policy.

In this blog, we talk about the importance of buying a car insurance policy and when is the right time to switch from third party insurance to comprehensive insurance.

Comprehensive Car Insurance

Comprehensive insurance is the most widely used form of car insurance that safeguards both parties in case of any mishap or accident. As the name suggests, comprehensive insurance is an extensive insurance policy that provides cover against an array of risks. Comprehensive car insurance provides coverage in case of damages to the car because of a calamity, accident, theft, fire, and explosion, etc. The additional riders or add-ons to the comprehensive insurance such as depreciation cover, emergency assistance, engine and gearbox protection, etc. make it a customisable and preferred form of a car insurance policy.

Third-Party Car Insurance

Unlike comprehensive insurance, the coverage provided under third party insurance is limited. A third party car insurance is the most basic and mandatory insurance to have as per the Motor Vehicles Act 1988. All motor vehicle owners are mandated to buy third party insurance. A third party car insurance covers you against damages caused to a third party by your car. The damages could be to a third party vehicle, property, or the person itself. Any damages, injuries, or loss occurring to the third party because of a policyholder’s fault are covered under this type of car insurance.

Comprehensive Car Insurance vs Third-Party Car Insurance

Comprehensive car insurance and third party car insurance have several differences in terms of the coverage, premium, and purpose of the insurance. Here are some of the major differences listed below.

● Coverage - The major difference between these two types of car insurance is the extent of coverage they provide. While a third party car insurance provides cover for the damages, injury, or loss caused to the third party, comprehensive insurance provides all-round protection to you, your car, and the third party liabilities.

● Premium - As expected, the insurance premium of a comprehensive car insurance policy is higher than the premium for basic third party insurance. The amount of comprehensive insurance premium is dependent on a range of factors such as the model and make of your car, your city of residence, and the additional riders you wish to choose.

● Add-ons - The third party insurance does have the option of add-ons. On the other hand, comprehensive insurance provides a variety of add-ons such as downtime protection, engineer and gearbox protection, road assistance, zero depreciation cover, etc.

Reasons to Switch to Comprehensive Car Insurance

Here is a list of factors that you need to consider while planning to switch to comprehensive car insurance.

● Personal accident cover - Apart from injuries sustained by a third party, comprehensive insurance provides personal accident cover and takes care of your treatment charges in case of an accident.

● Covers your damages - Unlike basic third party car insurance, comprehensive car insurance provides cover to your car for damages occurring due to a variety of reasons.

● Customisable add-ons - One of the major reasons for switching to comprehensive car insurance is the customisability option based on the several add-ons provided by

Conclusion

Buying the right car insurance policy is as crucial as buying the right car. While the law mandates you to buy a car insurance policy, you do not have to stop at the basic one. An extensive car insurance policy saves you from the hassle of medical and car repair bills. All-round protection provided under a comprehensive car insurance policy makes it a must-have in your arsenal.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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