4-wheeler insurance is an essential requirement for every car owner, providing financial protection in case of accidents, theft or damage. Third-party car insurance is the minimum legal requirement in many countries. This type of insurance covers only damages to the third-party vehicle or property and not the policyholder’s own vehicle. Many car owners opt for third-party insurance as it is more cost-effective than comprehensive insurance, but the question remains, is it enough to rely on third-party insurance only?
A third-party car insurance policy is sufficient, according to the Motor Vehicles Act of 1988. To drive on Indian roads lawfully, you must have this insurance. But this kind of car insurance won’t protect you from all potential unforeseen damages to your vehicle on the road.
To put it simply, third-party liability insurance pays for any harm a covered vehicle may cause to a third party. These losses cover property damage, bodily harm to third parties, and wrongful passing away resulting from the covered vehicle.
For instance, your insurance will cover the loss to the third party if your car impacts a piece of property belonging to someone else. For third-party property damage, third-party insurance offers a maximum compensation of Rs. 7.5 lakh. But, it is limitless when a third party suffers harm, passes away, or is rendered permanently incapacitated in an accident that was caused by the insured vehicle. *
So, third-party insurance for a car is sufficient to meet the legal requirements, but it only covers third-party damages and does not pay for any harm the insured car may sustain to itself. Hence, if you only have third-party insurance, you can only file claims for third-party harm, not for your own damages. *
Is comprehensive car insurance necessary?
Third-party insurance would be sufficient for you if all you wanted to do was adhere to the law. But, it is insufficient if you additionally wish to add additional covers to your policy or cover your own vehicle. A comprehensive car insurance policy becomes necessary in such circumstances. *
These are some benefits of comprehensive car insurance versus third-party protection:
- Covers your own Car: Comprehensive car insurance does not just cover third-party liabilities; it also covers your own car’s damages from accidents, natural disasters, theft, fire, etc. As a result, this policy provides dual coverage, which is something that third-party insurance coverage does not. *
- Add-ons – Add-ons are available, but third-party car insurance cannot be upgraded because it solely covers third-party losses, as was previously stated. Yet, by adding extras to your comprehensive car insurance policy, you can increase the coverage. These can be bought at the beginning or during car insurance renewal *
In conclusion, you can only file a claim for third-party damages if you have third-party insurance. You wouldn’t be able to receive compensation if your car was damaged as a result of an unforeseeable incident because this policy does not include its own damages under its coverage. Comprehensive car insurance will therefore be the best choice that you can go for in order to get maximum protection. *
While third-party insurance is the minimum legal requirement for car insurance, it may not be enough to protect you adequately in case of an accident. It only covers damages to the third-party vehicle or property and does not provide coverage for your own vehicle’s damage or theft. Comprehensive 4-wheeler insurance may be a more expensive option, but it offers a wider range of coverage and can save you from unexpected financial expenses in case of accidents. ## Therefore, it is essential to carefully assess your insurance needs and opt for the coverage that best suits your requirements and budget. * ##
* Standard T&C Apply
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.