You can choose between getting a comprehensive or a third party insurance policy for your car. These two types come with their own benefits and features.
If you are new to the car insurance world, you might be confused about which policy to buy for your car. Out of so many options available in the market, it can be hard to choose just one.
You can go either for a comprehensive vehicle insurance policy, or a third-party insurance (also known as liability cover).
This type of policy covers any damage that is caused by you to a third-party. If a person gets injured or his car gets damaged in an accident caused by your vehicle, a third-party cover pays for those damages and injuries. In India, it is mandatory to hold this type of policy so that you don't have to pay for your accidental damages.
A comprehensive policy is an all-inclusive cover. It covers your vehicle for theft, fire, and damages caused due to natural or man-made events such as road accidents, tornado, earthquake, falling objects, and even riots. Not only this, this type of car insurance also covers any type of third-party liability.
Comprehensive insurance includes third-party cover too. If you just have a third-party insurance policy, you would only be able to pay for the damages of the other person, and not for the ones caused to your car. But you can do both if you have a comprehensive cover.
The premiums of a third-party policy are low, which means that the comprehensive cover makes you pay a higher price.
But if you have an expensive car that makes you pay heavily for even a dent, it is recommended that you get a comprehensive cover. An old car with affordable parts and servicing can be managed with a third-party insurance.
If you are new to this and need to know the need for getting a car insurance, you can read the reasons for getting an insurance.