Know the Impact of Changing from Third-Party to Comprehensive Car Insurance

We spend a lot of time in analyzing and figuring out which car would fit into our needs and the list of features that it brings along with it. Amidst all this excitement, one must not forget something very basic. Driving a car without a valid insurance policy is illegal.

According to the Motor Vehicles Act of 1988, if you are to drive a vehicle on the public roads, you ought to have a valid car insurance policy. Given the ever-increasing traffic and sometimes bad road conditions, having a car insurance is a basic need more than anything else.

For those car owners who wish to buy a policy or get their car insurance renewal done, here are the two major options, a third-party car insurance policy and a comprehensive car insurance policy. Irrespective of which policy type you opt for, you will end up with at least third-party car insurance. The reason being, that a third-party policy is a minimum statutory requirement and is a part of a comprehensive policy.


Third-Party Car Insurance

This car insurance offers coverage against damage or injuries caused to other individuals or properties involved in an accident. Should your vehicle be involved in any such unfortunate incident, the policy has your back. It also takes care of legal issues arising out of accidents. The policy offers unlimited coverage for death or injuries to third-party individuals and a maximum coverage of INR 7,50,000 for damages to properties. Though it is enough for statutory requirements, it might not be enough for other needs.

Comprehensive Car Insurance

During your car insurance renewal, you can opt for a comprehensive policy. It comprises of third-party liability and offers a lot more. For starters, it covers own damage. This means you can claim for damages to your own vehicle. Also, you add riders to your policy to enhance their capabilities. Any damages to your vehicle due to natural or man-made calamities is also taken care of by the policy. Though the car insurance prices of a comprehensive policy are a bit on the higher side, they offer a lot more as well.

Changing Your Policy

If due to some reasons you had opted for a third-party car insurance policy earlier, you can change it during car insurance renewal. Of course, the car insurance prices of a comprehensive policy are a bit higher than a third-party. But you get features worth your money. Here are some benefits of switching the policy.

–          You no longer need to pay for repair bills towards damages to your car. The comprehensive policy has it covered.

–          In the event of a natural disaster such as flood, cyclone, earthquake, landslide etc. the repair bills are taken care of by the comprehensive policy.

–          Man-made nuisances like riots, vandalism, burglary, theft, etc. are also covered.

–          If you feel you need additional coverage, you can opt for riders such as zero depreciation cover, engine cover etc.

–          You still get to have a third-party cover along with a comprehensive policy.

Which One Should You Buy?

On the surface, it might seem like a bit of a confusing situation. Should you opt for a third-party cover only and save some money on the premiums, or opt for a slightly higher-premium based comprehensive plan? But if you ponder over the situation a bit more seriously, the decision is all too simple. For a marginal amount, you get a lot more coverage with a comprehensive plan.

Not only do you get the statutory legal clearance for your vehicle, but also can sleep well at night, never having to worry about theft or vandalism. A comprehensive policy is a more complete package and can help you save a lot of money from the long-term perspective. Opting for consecutive comprehensive policies also opens the doors for various discounts, thereby not letting you feel the pinch of the additional premium. If you seek to have complete peace of mind, a comprehensive policy is the right way to go.