Insurance Policy: In India, it is legally mandatory to take at least Third Party Insurance while driving. But many times there is a dilemma as to which policy should be taken between Third Party and Comprehensive Insurance. Let us understand the difference between the two in simple words:
Difference in Coverage
Third Party Insurance: As the name suggests, it only covers damage caused to the third party in an accident. It covers damage to the vehicle or property of the other person as well as the cost of injury or death to the passengers. However, any damage caused to your own vehicle is not covered under this insurance.
Comprehensive Insurance: It covers all third party items as well as damage to your vehicle. Apart from accidents, it also covers damage caused by incidents like theft, natural calamities, riots, or spontaneous fire in the vehicle. You can also take additional coverage as per your requirement like engine failure or personal accident cover.
Also Read: New Motor Vehicle Rules: No need to carry RC and Driving License Anymore
Difference in Premium
Third party insurance covers only the third party, so its premium is quite low. On the other hand, comprehensive insurance provides more comprehensive coverage, due to which its premium is also higher.
Which policy to choose
If you are buying a new car or the price of your car is high, then taking comprehensive insurance is beneficial. It gives you peace of mind because you get financial help in case of any kind of damage. On the other hand, if your car is old and the budget is limited, then you can opt for third party insurance. But, remember that in this situation you will have to bear the cost of damage to your car yourself.
