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Every car owner must insure their vehicle to protect it from unforeseen incidents like accidents, fire, natural calamities, etc. An insured vehicle gets financial coverage against damages caused to it accidentally. 

Vehicle owners driving on Indian roads without a valid car insurance policy are liable to pay penalties as per the law. So, one should buy at least a third-party car insurance to avoid legal hassles and safeguard your vehicle. 

However, the question of whether third-party car insurance is enough to cover your insurance needs arises. Read on to find out!

 

What is the Role of Third-Party Car Insurance?

 

According to the Motor Vehicles Act 1988, every vehicle in India must be mandatorily insured with a third-party car insurance policy. This basic coverage protects you financially when your car damages a third-party vehicle. Thus, third-party insurance allows you to comply with the law. 

Now, the question may arise: What does "third-party" imply? To understand the meaning and the coverage principles of third-party insurance, you need a clear idea of the following terminologies:


First Party


In an insurance policy, the policyholder is considered as the first party.


Second Party

 

An insurance policy is an agreement between the insured and the insurer. The insurance company is considered the second party since the insured (policyholder) is the first party.

 

Third Party 

 

A third party is the person who claims coverage against the damages caused to them or their property by the first-party vehicle.

The policyholder (first party) is liable to bear the expenses of damages and losses caused to the third party. So, if your vehicle commits an accident, you must inform your insurer about the mishap. The insurance company will ask for the details of the accident, such as date and place, severity of damages and injury, and witnesses (if any). 

All these details will help smoothen your claim procedure, and the third-party losses will be handled. 


Top 3 Reasons Why Third-Party Car Insurance Is Not Enough for Indian Roads

 

Third-party insurance may be a mandatory requirement, but it is not an ideal insurance policy for a car owner. Here’s why:

 

1. It Does Not Cover the Policyholder’s Vehicle

 

A third-party car insurance policy only helps you stay compliant with the motor vehicle regulations in India. It does not cover any damages caused to your vehicle during the accident. 

For instance, you cannot claim insurance coverage if your vehicle hits another car and gets a dent or breaks its headlight. However, if it causes damage to another vehicle, you can get coverage against the expenses incurred in repairing that.

 

2. You Cannot Get Additional Coverage 

 

Add-ons allow you to customise your car insurance policy beyond its standard coverage. You can buy add-ons by paying a little extra than your basic plan. For instance, you can opt for zero-depreciation coverage to ensure full claim amounts without depreciation deductions.

However, a third-party car insurance policy does not offer you any option to customise your insurance benefits with add-ons. Thus, it cannot provide the required coverage for the insured vehicle.

 

3. Minimal Personal Accident Cover

 

Though third-party insurance does not cover the policyholder's vehicle, it offers personal accident coverage to the policyholder. However, the coverage is influenced by the terms and conditions of your car insurance policy. 

Besides, the coverage amount may also vary from one insurance company to another. Considering the rising treatment costs and hospitalisation charges, the personal accident cover may not be enough to cover your needs.


How to Get the Right Coverage from Your Car Insurance Policy?


After considering all the aspects of third-party car insurance, you can conclude that it is not enough for your vehicle. Choosing a car insurance policy with adequate coverage and fair premiums can help safeguard your vehicle from unforeseen mishaps. 

A comprehensive vehicle insurance policy can offer wider coverage. It covers third-party liabilities and provides coverage for your own damage. So you can comply with the law and get insurance coverage for your vehicle. 

You can purchase car insurance online by selecting a policy, reviewing terms, and making timely payments. Ensure timely renewal and keep a policy printout in your car and other documents.

 

Why Should You Consider A Comprehensive Car Insurance Policy?

 

A comprehensive car insurance policy has several benefits, such as providing adequate coverage to vehicle owners. Here are some of the reasons why you should choose comprehensive insurance over third-party insurance:


Offers Extensive Coverage

 

Comprehensive car insurance offers extensive coverage for vehicle damages, including personal accidents, third-party liabilities, theft, and natural or manmade disasters like fires and riots.
 
This end-to-end protection saves you from costly repairs. Although premiums are higher than third-party insurance, comprehensive coverage is well worth it to avoid significant expenses in case of an accident.

 

Customisable with Add-Ons

 

You can extend the benefits of a comprehensive insurance policy with add-ons. You can avail yourself of these additional coverages by paying a little more with your monthly premium. 

Multiple add-ons are available, such as a No-Claim Bonus, Zero Depreciation Cover, Return-to-Invoice Cover, etc. You can add any of these riders to your comprehensive policy based on your requirements and budget.

 

Convenient and Quick Service

 

Comprehensive car insurance offers a vast distribution network that provides invaluable support, particularly through quick roadside assistance. Roadside assistance includes towing, fuel delivery, and on-site repairs, ensuring that you receive immediate help when needed.
 
Thus, comprehensive allows you to access assistance anywhere, anytime, making it easier to manage unexpected situations without feeling overwhelmed. The convenience and reliability of this service enhance the overall benefits of comprehensive car insurance.


Provides Peace of Mind

 

A comprehensive car insurance policy provides peace of mind by covering damages regardless of fault. It protects against third-party lawsuits and covers the injuries and damages caused to the insured vehicle and its owner in case of an accident. 

Without comprehensive coverage, you may face financial hardship and have to use personal savings for repairs or medical bills. This policy ensures that you and your family are financially secure in the event of an accident, allowing you to enjoy your vehicle without stress.

 

Covers Your Car Against Theft

 

If your car is stolen, only a comprehensive car insurance policy will provide compensation. This type of insurance covers theft, unlike third-party insurance, which offers no protection against vehicle theft. Therefore, having comprehensive coverage is essential to ensure financial security in such situations. Without it, you would bear the full loss of your vehicle. 

Thus, third-party car insurance is mandatory in India, but it may not be enough for a vehicle, considering the country's challenging road conditions. The rising traffic and poor road conditions may lead to severe damage to your car. 

On the other hand, comprehensive car insurance offers broader protection, covering vehicle damages, theft, and personal accidents. Despite the slightly higher premiums, comprehensive coverage is advisable for optimal safety and peace of mind.