What’s the Difference Between Comprehensive and Third Party Car Insurance?
Car insurance isn’t as simple as it may seem. There are different types of car insurance, including third party car insurance and comprehensive car insurance.
But what exactly are the differences between these two types of insurance?
We’ve put together this comprehensive guide to explain the difference between the two types of car insurance and help you decide which one is best for you.
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Comprehensive Insurance Explained
Comprehensive insurance is an automobile insurance policy that provides coverage for losses not covered by standard car insurance. As an example, a comprehensive car insurance policy would cover theft of your vehicle or damage to your vehicle from vandalism.
However, it will not cover damages incurred while driving such as accidents with other vehicles or objects.
Comparing comprehensive auto insurance policies can be done by reading through each policy carefully and asking questions about exclusions (losses not covered).
It is important to do this before signing any contract because once you sign, you are agreeing to those terms.
That being said, most third party car insurance policies do have some level of coverage for damages incurred while driving such as collision,
fire, theft and vandalism. Depending on the specific policy you choose, there may be limits to what types of damages are covered under third party car insurance.
Why you need third party insurance only
Third party insurance is a type of car insurance that covers you in case your vehicle is damaged by someone else.
It pays for the cost of damage to your car, minus any deductible you may have chosen. If you’re not sure if this type of coverage is right for you, here are some things to consider:
-Does your vehicle already carry comprehensive coverage?
-If so, does it also cover repair costs when your vehicle is damaged by another driver?
-If not, would you be better off adding third party insurance than getting comprehensive coverage from a company like GEICO or Allstate?
-Do you have enough money to pay for a high deductible up front or would it be easier with monthly payments from GEICO or Allstate?
-Are you looking for more flexibility in deductibles? GEICO offers an auto savings plan that lets you set your own deductible based on how much extra coverage you want.
-Finally, do you need to get cheaper quotes elsewhere before making a decision? Remember, shopping around might give you an opportunity to save hundreds of dollars on what can end up being a very expensive purchase.
-Third party insurance only will typically cost less than comprehensive coverage over the course of six years and could save the average driver thousands of dollars overall over those six years
A Complete guide for 3rd party car insurance
1. Comprehensive insurance coverage will cover you for any damage or injury to your car, whether it is caused by an accident, theft, or vandalism.
It also covers collision coverage if you have a collision with another vehicle.
2. If you select third party car insurance, you are only covere for damages to other vehicles in an accident that are not your fault. You are not covered for injuries sustain in a collision with another vehicle or any damage to your own car from any cause.
3. Comparing comprehensive and third party car insurance can seem overwhelming at first glance, but it doesn’t have to be! The key difference is the protection offered:
-Comprehensive coverage provides more protection than third party
-It’s best to compare different types of policies before selecting one.
Remember that there are several factors affecting how much you’ll pay, including your age and how often you drive.
With all this in mind, it may make sense to invest in more extensive coverage rather than settle for limited protection.
Even if you live in a low crime area and don’t usually take long road trips, comprehensive coverage might still be worth the cost.
How to choose a good 3rd party policy
Third party car insurance policies, also called excess or liability, offer liability coverage to drivers who are in an accident with someone else.
Depending on your needs, a third party policy may be sufficient, but it is important to note that it won’t cover you if your own car damages property or causes injuries to another driver.
Third party policies typically provide for bodily injury up to $100,000 per person, per incident; personal injury protection (PIP) up to $250,000 per person per incident;
uninsured motorist coverage up to $50,000 per person and property damage up to $25,000.
It’s also worth noting that most states have no-fault laws which means you can collect benefits from your own insurer without filing a claim against the other driver.
However, this does not include medical bills incurre by passengers in your vehicle unless they were injure by their seat belt.
7 Important tips before getting 3rd party policy
1. Make sure you have a valid driver’s license.
2. Make sure your car is registere with the DMV.
2. Check your auto insurance coverage to make sure it includes liability coverage (covers you if you injure someone else or damage their property).
3. If you don’t have insurance coverage, consider purchasing a policy to protect yourself and others on the road in case of an accident or injury-related lawsuit.
4. Do you need personal items coverage or medical expenses protection? 5. What’s your deductible amount – how much are you willing to pay for every claim?
6. Do you want rental reimbursement protection if you can’t use your vehicle for work after an accident or collision? 7. What about roadside assistance – will
AAA help jump start my battery, change my flat tire, tow me home, give me gas money when I’m out of fuel
…you get the idea! AAA may offer such services, but that isn’t part of what you’re paying for.
It’s important to remember that comprehensive coverage and third party insurance each provide some benefits that the other does not:
comprehensive pays for damages caused by events other than collisions, like theft; third party doesn’t cover those things at all.
When deciding which type of coverage best suits your needs, consider what types of risks would be financially devastating if they were to happen while driving a car.
Do I need 1 or 2 wheeler insurance?
If you ride a motorcycle, it is likely that you will want to invest in both comprehensive and third-party car insurance. Comprehensive covers damage to your bike as well as any other person involved in an accident.
Third-party is only for damages to another person’s property. If you are not driving your motorcycle, then you may only need third-party car insurance. The two types of coverage work similarly,
but with different benefits. For example, if you were in an accident with a pedestrian who was jaywalking and had not paid attention to traffic signals while crossing the street,
they would be compensate through third-party car insurance but no one would cover damage done to your bike or injuries sustained by yourself or other passengers on board.
Comprehensive coverage compensates victims of accidents where negligence was present on either side.
It also compensates victims who have been injure even if they were at fault for causing the collision themselves.
Does my commercial vehicle need third party insurance?
If you drive a commercial vehicle for business, you must have third party insurance.
This type of insurance protects you in an accident with your vehicle. If you drive a personal car for business purposes,
then comprehensive insurance is require. The difference between these two types of insurance is that comprehensive insurance covers damages to your car.
So if you’re driving a commercial vehicle. It’s likely better to go with third-party insurance because.
If you’re driving a personal car for business reasons, then both types of insurance can be used as long as they meet state requirements.
