Is Third-party auto insurance really worth it?

The cheapest car insurance plan is the basic. A Third-party liability policy will help you stay on the right side. You can also save money and avoid paying fines. Is it sufficient to have partial coverage? Even if the cost is high, should you get comprehensive car insurance? These are the questions that this article will answer. The most important question is: Is Third-party insurance really worth it? Let’s compare the options and find a concrete solution.

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Is Third-party auto insurance really worth it?

Let’s first explain what you get if you choose the Third-party insurance.

What does Third-party Car Insurance refer to?

The third party is someone other than you (the owner of the car) and your insurance company (the second). A pedestrian riding a bike, or drivers of other vehicles, and hawkers are all examples of third parties.

You could accidentally do damage to these people. You may also cause damage to their property (homes, vehicles, farms, etc.). You are responsible for the costs of treatment and compensation if this happens.

Sometimes the monetary loss could reach several lakhs of dollars. Imagine, for example, that you accidentally hit someone whose net worth is 50 million rupees. You must now pay his family compensation for the death.

Motor Accident Claim Tribunal will determine the amount of compensation. It can be as high as crores of rupees. Your Third-party Car Insurance Policy is crucial. Your car insurance company will pay the costs.

Liste of Third-party car insurance coverages

Here’s a list listing the coverages that Third-party Car Insurance policies offer.

1. Insurance coverage for third-party disability/death

A family member dies in an accident. This is a devastating event. Although nothing can replace the loss, fair compensation can be offered by you as a car proprietor. This plan provides coverage for the death or disability of a third person.

2. Third-party costs for treatment

Injuries from accidents can cause severe injuries that will require expensive treatment and medical attention. These costs will be covered by your Third-party Car Insurance Policy.

3. The legal liabilities of the car owner

Legal disputes can arise from accidents. To resolve such disputes, you will need to hire a lawyer. If this is mentioned in the policy terms, your insurance company will pay for it.

4. Personal Accident Insurance

You will need to purchase a separate Personal Accident Insurance policy in addition to your basic Third-party insurance. This insurance provides accident coverage for the car owner, i.e. you. It provides death and disability benefits up to Rs. 15 lakhs.

It is now very simple to purchase third-party auto insurance online.

What are the disadvantages of purchasing only Third-party Car Insurance?

There are some serious drawbacks to buying only Third-party Car Insurance Policies. Here’s a list.

  • You are responsible for paying the car’s repair costs – The main purpose of car insurance policy is to limit your financial loss in the event of an accident. You could suffer major financial loss if your vehicle is damaged. In this instance, you are responsible for the entire repair cost.
  • No coverage to cover car theft – You cannot file a claim for compensation for your car if it is stolen because it is not covered by a Third-party liability plan. It would be enough to file a police report and hope the car is found in a decent state.
  • A Third-party car insurance policy cannot be customized – The cost of a Third party Car Insurance Policy is determined by the Insurance Regulatory and Development Authority. The cost of a Third-party insurance plan cannot be changed by insurance companies. Insurance companies cannot offer discounts, customisations or other offers for these plans. You cannot also customize the coverage to meet your needs.

Comprehensive Car Insurance: Why Should You Consider It?

For the following reasons, you should consider purchasing Comprehensive Car Insurance Policy.

1. Wide coverage

A Third-party policy protects you against third-party liability but does not cover your vehicle. All repair costs must be borne by you. If you choose a Comprehensive policy, your insurance company will cover all car-related damages, as well as third-party liability.

2. You have the option to personalize

IRDAI stipulates that third-party policies are governed by the terms and that insurance companies can not make any changes to the coverage. Insurers can change the coverage with a Comprehensive policy. Car insurance companies offer additional coverages such as Zero Depreciation Cover and Roadside Assistance Cover. Learn more about car insurance add-ons.

3. Competitive prices

ACKO offers car insurance plans such as Comprehensive – Super Saver or Zero Depreciation Smart Saver that provide maximum coverage for a very low premium.

4. You can also compare plans

You can compare car insurance plans before you buy a policy to help you make the right decision. Compare coverages, exclusions and premium. You can then choose the policy that suits your needs best.

5. Get Discounts

Comprehensive car insurance offers many discounts. If you don’t make any claims, you can get the No Claim Bonus (NCB). It is important to decide if the NCB is worth losing in the event of minor damage to your car.

Although you can purchase a policy from many sources, it is easier to buy online car insurance.

Also read: Comprehensive vs Third Party Car Insurance

Takeaway

As per legal requirements, a Third-party Car Insurance Policy must be purchased. However, if you are subject to car-related damage, opting for a basic plan is not advisable. Comprehensive Policy is an extended plan that provides not only third-party coverage, but also own damage (damage to your vehicle). You can also customize a comprehensive plan to receive discounts and offers on premiums. If you want comprehensive coverage, consider a Comprehensive Car Insurance Plan.

Frequently asked questions

Here are some frequently asked questions about Third-party and Comprehensive Car Insurance Plans.

What is the cheapest car insurance plan?

The cheapest car insurance plan is a Third-party Liability Policy. It provides the car owner with the smallest amount of car insurance coverage.

Can I drive a car without a Third-party insurance policy?

Yes. If you want to avoid paying fines, it is essential that you have at least a Third Party Car Insurance Policy. If your car is damaged, choosing a simple policy could expose you to financial liability.

What is a “paid driver” in car insurance? Can I add a paid driving in a Third-party Car Insurance Policy.

A paid driver is the professional who drives your car. They can be added to your car insurance policy. You can claim for major injuries sustained by the driver. Yes, you can add a paid driver to your Third-party Car Insurance Policy.

What are the major exclusions to Third-party Car Insurance?

Exclusions refer to situations that aren’t covered by your car insurance policy. Here are some important exclusions to car insurance plans.

  • A Third-party Policy does not cover any damage to your vehicle.
  • False Information
  • Fraudulent claims

For a complete list of exclusions, please refer to your car insurance policy.

Last Updated : March 14, 2022 by Editorial Team

Published : March 14, 2022

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