Choosing the right vehicle insurance is as difficult as choosing the right car out of the many options. Similar to purchasing a car, a vehicle owner has to do research about the type of insurance plan he needs, search for the best policy offering the required coverage, and filter the options to settle with a plan that offers a decent coverage at a reasonable premium. The entire process is exhaustive and can take much of your time.
Hence, to make your work easier, we’ve done the first step that vehicle owners are required to complete to find the ideal insurance for their car. After much research, we’ve found that comprehensive car insurance is way better than third-party insurance. So if you’re planning to get a new car or have already bought one, consider securing it under comprehensive insurance over a third-party one. If you’re wondering why comprehensive insurance is better than third-party insurance, then read till the end.
Also read: Penalty for Driving Without Car Insurance in India
Third-Party Vs. Comprehensive: Let’s Get the Basics Clear
To assess and decide if comprehensive car insurance is better than third-party insurance or vice-versa, you must possess a clear understanding of both. So let’s start with the basics of each.
- Third-Party Car Insurance
Third-party insurance plans cover the insured against third-party financial liability arising from road mishaps. This insurance offers limited coverage, as the insured cannot claim own damages caused during a road accident. The law requires vehicle owners to cover their car with at least this basic insurance plan if they don’t want to go ahead with comprehensive insurance due to the comparatively higher premium.
If you don’t want to pay for damages from your own pocket, in case of an accident, you should choose a comprehensive insurance policy. But it is just one reason that makes comprehensive policy desirable over third-party car insurance. Mentioned below are the points to know why comprehensive insurance is the better bet.
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- Comprehensive Car Insurance
If you’re looking for an extensive car insurance plan with all the basic requirements covered, comprehensive car insurance is for you. Comprehensive car insurance covers the insured for third-party financial liabilities arising from road mishaps and own damages. You also get the option to upgrade the coverage by purchasing add-ons that you need. Below are some of the benefits that are covered by comprehensive car insurance.
Benefits Covered Under Comprehensive Car Insurance
- Better Coverage
A stark difference between comprehensive and third-party insurance lies in their coverage terms. As mentioned above, comprehensive insurance is extensive in nature. It covers both the insured vehicle owner and third-party individuals and properties for any financial damages caused due to road accidents. Third-party insurance plans offer limited coverage, and the insured will have to bear losses for damages from his own pocket if the car gets damaged in any road mishap.
- Extensive Benefits
Comprehensive car insurance plans offer extensive benefits in the form of better coverage at a reasonable premium. Depending on the comprehensive plan and add-ons you’ve taken, the insurer will cover you against various financial liabilities arising from a road accident.
The benefits of comprehensive insurance include covering your four-wheeler’s tyre, engine, passengers, roadside assistance, etc. It will all depend on the add-ons you’ve added to the standalone policy. Read the next point to understand it better.
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- Extra Protection with Customised Add-ons
While comprehensive insurance covers most of the basic needs, some vehicle owners demand additional coverage. It is mostly seen in cases where the person drives high-end luxury cars. If you want your vehicle to be secured for financial damage arising from any possible event, you will have to purchase separate add-ons addressing your needs.
The range of add-ons available for comprehensive insurance is way more extensive than the options available for third-party insurance. For example, those willing to buy comprehensive car insurance can purchase any of the following or more than one add-on as per their requirement:
- Consumable Cover:
Consumable items like nuts, bolts, oil, etc., are not a part of the standalone car insurance. If you want to secure these against financial losses due to road mishaps, you’ll have to take the consumable cover.
- Engine Protection Cover:
While a standalone policy covers the damages caused during the road mishap, it doesn’t bear the cost for consequential damages caused to the vehicle’s engine. An engine protection cover helps the owner claim consequential engine damages.
- Roadside Assistance:
Anyone can get stranded with a broken car in the middle of the road. If you have roadside assistance cover added to the standalone policy, you can get quick roadside assistance, including fixing tyres, towing, etc. If you’re stranded within 500 km from the middle of a city, you can call your insurance company for assistance.
- Zero Depreciation:
Car is subjected to wear and tear, resulting in the reduction of value due to depreciation. And in most cases, the owner is responsible for paying for the depreciation and replacement of spare parts after an accident. Having zero dep car insurance ensures the insurance company pays for it.
You may not get to add this many add-ons to third-party insurance, and even if you do, the total premium cost can become significantly high.
- Ideal for New Cars
Those with new cars should prefer buying comprehensive insurance as it offers better coverage than third-party insurance. You can also purchase add-ons to secure your new vehicle’s tyres, engine, consumable parts, etc., thereby giving the car complete coverage.
- Covers Third-Party & Own Damage
What makes comprehensive insurance more desirable is its coverage. While third-party will only cover the financial losses caused to third-party individuals and properties in case of road mishaps, comprehensive insurance will cover both third-party and own damages.
- Covers Loss Caused Due to Theft
The best part of comprehensive car insurance is it covers loss caused due to vehicle theft. Anyone whose car is insured under a comprehensive plan will be entitled to receive the sum insured value mentioned in the policy if the vehicle gets stolen.
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- Covers Loss against Natural Disaster
If your car gets severely damaged by a natural disaster, the chances are rare that it’ll be repaired back to normal. But if you secure your vehicle under comprehensive car insurance, you can get the full sum insured if the car gets damaged beyond repair due to floods, fire, earthquake, etc.
- Saves money
If you compare the coverage against the premium charged, comprehensive insurance offers value for money. Third-party insurance provides limited coverage, so anyone trying to enhance its coverage will have to purchase separate add-ons, which will eventually take the premium higher.
- Passenger Cover
One of the best add-ons you can get with comprehensive insurance is the passenger cover. If you include this cover in the policy, you’ll be able to receive financial compensation from the insurance company against treatment costs incurred on the passengers present in the vehicle during a road accident.
Also read: What Is Restoration Benefit In Health Insurance Plans?
Besides the benefits mentioned above, buying comprehensive car insurance will also give you peace of mind due to its extensive coverage. If you want insurance that offers value for money and is the best option available in the market, go ahead with comprehensive insurance. You will not regret picking comprehensive insurance for your vehicle.
