Pros and Cons of a Third Party Car Insurance Policy in India

In general, there are mainly two types of car insurance plans to choose from:

• Comprehensive car insurance
• Third party liability only policy

As per Motor Vehicle Act, 1988, it’s a legal requirement for every vehicle owners to at least have third party car insurance while the comprehensive auto insurance is optional a bit costlier than the first one. Third party car insurance is also known as a liability only insurance since it protects an insured person against the claims arising out of a third party person.

So it’s pretty much crystal clear by now that it’s a third party that is the main beneficiary of a third-party car insurance plan, not the insured person. Many vehicle insurance companies in India offer personal accident coverage with third party car insurance plans. It’s advisable to compare different car insurance policies from different motor insurance companies in terms of the features and coverage you are looking for before buying any car insurance plan.

Third party car insurance is both bad and good for various reasons. Let’s find them out below:

Pros of Third Party Car Insurance

There are plenty of benefits of third-party car insurance plan. Third party motor insurance covers the damages to other vehicle and property involving your vehicle. However, your own damage will not be covered within the third party vehicle insurance. In case you don’t have third party auto insurance, you could face legal charges. Some benefits of third-party liability coverage may include,

• Third party car insurance covers an insured person against legal liabilities in case of damage, death or disabilities to any third party.
• If your car is involved in an accident where you are at fault, you’ll be on the safe side.
• Since third party auto insurance plan settles the expenses and expenditures through financial payments when your car gets in an accident with another car, you get total peace of mind while driving your vehicle.
• Third party Car Insurance online can be easily procured through various insurance portals. This way you can buy or renew auto insurance quiet simply and easily in no time.
• One of the main advantages of the third party motor insurance is its cost.

Cons of Third Party Auto Insurance

As previously mentioned that the third party car insurance only covers the damages of a third party, you are not officially entitled to receive any benefits out a third-party motor insurance plan. Some of the disadvantages of third-party auto insurance include,

• In the event of theft or damage of your vehicle due to fire, your third party policy will not provide any help.
• In case of an accident or natural or manmade calamities, the damages done to your own vehicle will be covered.

However, it’s always wise to opt for comprehensive auto insurance given that it covers both the third party legal liabilities as well as your own damages.

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