Third-party insurance protects the insured in claims. The first party (you) purchases insurance through the second party (the insurance company), which covers expenses when the third party files a claim against you. Third-party insurance covers damages you cause to others, whether physical harm or property damage.
What are the benefits of third party insurance?
A third-party insurance cover is a specific policy that protects you against legal or accidental liability, financial loss or damage to property. The cover also protects you in case of a third-party injury or even death of the person because of your vehicle. When driving, there is a real risk of an accident.
What are the advantages of third party car insurance?
Third party car insurance helps to make sure you’re covered if somebody else claims against you if you cause an accident or any damage when driving. Third-party car insurance makes sure you’re covered when somebody else claims against you if you cause an accident or damage when driving.
Is it worth getting third party insurance?
Third party insurance is the least amount of cover that you should legally have on your car. … Therefore it’s always worth comparing the cost of this type of insurance against comprehensive cover. Third party fire and theft insurance is an additional option that you may consider.
What does a third party car insurance cover?
Third Party Car Insurance offers cover for damage caused to someone else’s vehicle or property, if you’re liable for it. It can also, for an additional premium, include cover for loss of, or damage to, your car caused by fire or theft.
What are the disadvantages of third party insurance?
Cons of Third Party Insurance
If you are responsible for the accident, then you are responsible for paying for all the repairs as well. The next disadvantage is that in the case of theft of your vehicle or damage due to fire, your third party policy would not be of any help.
Can I drive a car with 3rd party insurance?
If you have the minimum levels of cover (third party or third party fire and theft insurance), then it’s unlikely that you’ll be able to drive someone else’s vehicle using your policy. … Most policy providers only allow you to drive other vehicles if you have a minimum of comprehensive cover.
Is third party insurance good or bad?
Value of the car: If value of your car is low, it is better to take third-party motor insurance since repairs to damages caused can be managed cost-efficiently and easily. It is cheaper to pay for repairs when compared to paying the high premiums associated with comprehensive cover.
What does a third party insurance mean?
Third-party insurance covers an individual or firm against a loss caused by some third-party. An example is automobile insurance that will indemnify the insured if another driver causes damage to the insured’s car. The two main categories of third-party insurance are liability coverage and property damage coverage.
Can we claim third party insurance?
The third party here is any third person. . Under your third party insurance, a third party can file a claim for compensation for injury, death, property damage caused by your car. The case for claiming compensation under third party will be filed against you and your insurer.
What are the 3 types of car insurance?
What are the different types of car insurance?
- Liability coverage. …
- Collision insurance. …
- Comprehensive insurance. …
- Uninsured motorist insurance. …
- Underinsured motorist insurance. …
- Medical payments coverage. …
- Personal injury protection insurance. …
- Gap insurance.
What happens if you only have third party insurance?
WHAT IF I ONLY HAVE THIRD PARTY PROPERTY INSURANCE? You may claim on this type of policy if there is any damage to any other car or property. … If you believe that someone else caused, or partially caused the accident you may be able to recover your costs from them or their insurance company.
Do I need both comprehensive and third party insurance?
Every certified vehicle has to be covered by CTP insurance, whereas comprehensive car insurance is optional. CTP insurance only protects you from the personal injury liability that might arise if you injure anyone involved in an accident you caused.
Is third party insurance the cheapest?
Traditionally, third party and third party fire and theft cover were much cheaper than comprehensive insurance, but for many this is no longer the case. … For a more experienced driver, quotes for third party fire and theft cover came out cheaper than comprehensive cover, but by just 1%.
Which company is best for third party car insurance?
Overview of Top 10 Car Insurance Companies
- HDFC ERGO Car Insurance.
- Edelweiss Car Insurance.
- Bharti AXA Car insurance.
- Digit Car Insurance.
- Future Generali Car Insurance.
- Reliance Car Insurance.
- Bajaj Allianz Car insurance.
- IFFCO Tokio Car Insurance.