Knowledge Centre

Reasons Why Third Party Car Insurance 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.

Top reasons why third party car insurance coverage is not enough

Your car is not given any coverage: A third party car insurance policy does not provide coverage for your car and instead only covers you against liabilities arising out of damages, injury or death of the third-party or property. So this means that if your car is damaged due to an accident, theft or a calamity, then you won’t be entitled to receive any coverage.

You cannot opt for add-on covers: Add-on covers help you enhance the scope of your comprehensive car coverage. You can opt for add-ons along with comprehensive car cover by paying a little extra premium. For instance, if you own a zero depreciation add-on, then the insurance company does not consider the depreciation value of the car parts and offers you full compensation unlike the coverage provided under comprehensive cover subject to excess as per the policy schedule. However, one cannot opt for add-ons with third party car insurance.

With the above mentioned points, it is clear that the third party 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.

You can choose to buy comprehensive car insurance policy online or offline to get discounts up to 70%. 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.

Awards & Recognition