Reasons Why Third Party Car Insurance Is Not Enough

Posted on: Jun 17, 2019 | | Written by:

Reasons Why Third Party Car Insurance Is Not Enough

Reasons why third party cover is not enough

The purpose of buying a car insurance policy is to get financial coverage in case of an unfortunate event such as damage caused to your vehicle or a third party or property. A third party insurance safeguards you against all the liabilities arising out of damage, injury or death caused to third person or property. Third party insurance is mandatory in India as per the Motor Vehicles Act, 1988. However, buying a third party policy would not be an ideal coverage option as it would not provide you complete coverage in case of damages caused to your vehicle. Here are some reasons why third party car insurance is not enough.

1. Your Car Remains Uninsured

Third-party car insurance does not cover damages to your car. In this case, you are paying an insurance premium just to obey the law while your car remains uninsured when it comes to own damage. So, if your car meets with an accident, your insurance policy will not pay the repairing costs of your damaged vehicle. Also, you will not be covered if your car gets stolen or damaged due to a natural or man-made calamity.

2. Less Coverage for Personal Accident

A third-party car insurance policy offers a personal accident cover for the owner/driver is very less (in some cases only upto Rs 2 lakhs). This depends on the clauses mentioned in the car insurance policy. However, with the current hospitalization and medical treatment cost, such a cover might not be sufficient. Your medical expenses might exceed the claim amount received in case you suffer a personal injury while driving the car.

3. No Possibility for Add-ons

In a COMPREHENSIVE CAR INSURANCE policy you can opt for dd-on covers like Passenger Cover to insure your fellow passengers or purchase an Engine Protection Cover to increase your insurance policy's coverage. However, that option is unavailablewith just the third-party liability car insurance policy.

Moreover, it's essential to consider the right time to switch from third-party to comprehensive car insurance. If you're unsure about when to make this transition, you can find valuable insights in this informative article on When is the right time to switch from Third Party to Comprehensive car insurance.

Conclusion

With the above mentioned points, it is clear that the THIRD PARTY CAR INSURANCE coverage is not enough to insure your car. It is important to know that a comprehensive car insurance policy provides coverage to your own car as well as third person or property. In addition, you can opt for add-on covers to extend the coverage of your base comprehensive car policy. You can choose from popular add-on covers such as zero depreciation, no claim bonus protection, emergency assistance cover and others.

Also, buying CAR INSURANCE policy has its own share of benefits such as you can buy the policy from the comfort of your home, policy is issued online, thus you can access it anytime, anywhere. However, before opting for a car cover, check on the terms and conditions of the policy along with its inclusions and exclusions. With this, also don't forget to renew your car insurance policy on time.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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