Reasons Why A Third-party Car Insurance Is Not Enough

Third-party car insurance is an important insurance product that covers third-party liabilities. This simply means that if a third party suffers any physical injury or property damage because of your vehicle, the insurer will come to your rescue. Moreover, the Motor Vehicles Act (1988) makes it mandatory for car owners in India to buy this insurance policy before taking their cars on the road.

With insurance companies offering car insurance online, you can easily buy one from the comfort of your home and save yourself from legal hassles and financial liabilities. However, if you are planning to buy third-party car insurance, it is important to know that this insurance policy offers limited coverage to policyholders, and the same may not be enough.

Understanding Third-party Car Insurance Coverage

A third-party car insurance policy offers the following coverage to policyholders —

• Third-party vehicle damage: If your car hits a third party’s bike on the road, the insurer will cover the bike’s repair costs as per policy terms and conditions.
• Third-party property damage: This insurance policy also covers damages to a third party’s property. For example, if your car crashes into a food stall or shop on the road, the insurer will cover associated repair costs.
• Third-party injury or death: If your car accidentally injures someone, the insurer will cover his/her medical bills. Also, if an accident leads to the death of the injured person, the insurer will offer financial compensation to the deceased person’s family.

Why A Third-party Car Insurance Policy Is Insufficient?

The following are the reasons why a third-party car insurance policy is not sufficient for car owners —

1. No coverage for your car: As the name suggests, a third-party car insurance policy covers only third-party injury or property damage. So, if your car gets damaged in an accident, you will have to pay the repair costs from your pocket. However, if you opt for comprehensive car insurance, the insurance provider will cover both personal and third-party liabilities and ease your worries.
2. No coverage against theft and natural calamities: Unlike a comprehensive car insurance policy, third-party car insurance will not cover your vehicle against theft, fire, riots, and natural calamities. Therefore, the occurrence of any of these unforeseen events can cause significant financial setbacks.

For example, if your car gets damaged in flood water and requires extensive and expensive repairs, a third-party car insurance policy will not cover the bills.

3. No option for add-on covers: Insurance companies do not allow policyholders to customise, modify or extend their third-party car insurance policy with important add-ons. Therefore, this insurance product offers basic coverage, and the same may not be enough. Some add-on covers, such as roadside assistance cover and engine protection coverage, can come in quite handy.

For example, if your car breaks down in the middle of nowhere, you can get in touch with your insurance provider for assistance. From car repairs and fuel delivery to towing, alternate vehicle arrangements and medical assistance, your insurance provider will help you with everything.

Keeping these points in mind, it is wise to choose a comprehensive car insurance policy for extensive coverage and better financial security.

Advantages Of A Comprehensive Car Insurance Policy

The following are the advantages of a comprehensive car insurance policy —

1. Extensive coverage: A comprehensive car insurance policy covers own damages as well as third-party liabilities. The policy also protects your vehicle against natural calamities, accidental fire, theft and man-made hazards, such as strikes and riots.
2. Add-on covers: You can choose important add-on covers with your comprehensive car insurance policy, such as zero depreciation cover, engine protection cover, roadside assistance coverage, and more, and reduce your financial burden.
3. Financial protection: This insurance product safeguards you against own damage as well as third-party liabilities and keeps away financial worries.
4. No-claim bonus: Insurance companies offer no-claim bonuses to policyholders for every claim-free year. Therefore, if you don’t make any claim in the policy year, you can enjoy a no-claim bonus in the form of a discount on the subsequent policy premium.

Conclusion

To sum up, while a third-party car insurance policy can save you from legal and third-party liabilities, the policy coverage may not be enough. Therefore, if you are looking for wide coverage for better financial protection against accidents, natural calamities, and other uncertainties, it is wise to opt for a comprehensive car insurance policy. You can easily purchase a suitable car insurance online policy with a few clicks and secure your vehicle and finances.

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