Which one is better comprehensive car insurance or a third party car insurance?

comprehensive car insurance or a third party car insurance

It is very difficult for every car owner to choose an insurance policy that provides protection from all losses. There is a lot of risk to a car, especially when we talk about a new car. There are multiple insurance policies available in the market. But purchasing the best policy will depend on the capability and requirement of the owner. You can either choose a comprehensive car insurance policy or third-party car insurance policy. There is a range of differences between comprehensive and third-party insurance.

A comprehensive car insurance policy completely justifies its name by providing complete coverage from all types of losses. Whereas third-party car insurance will only cover the losses caused to the third party property. We can also say that if your car is damaged in an accident then a third party insurance policy will not bear your car repairing expenses. Additionally, if the provider examiner found you not guilty for the accident then they will only provide a certain percentage of the total sum insured. If you choose to buy car insurance online you will find that third party coverage is just a part of the complete insurance plan. And you cannot purchase it individually.

Benefits of comprehensive car insurance Vs Third-party car insurance 

Both insurance policies have different types of benefits. They do not relate to each other. If you think of covering natural damage with third party policy then this will not be possible. But a comprehensive car insurance policy will cover your third party losses along with the physical damages. So, if you are thinking of a car insurance renewal then make sure to choose for the comprehensive plan rather than a third party cover.

  • Benefits of a comprehensive car insurance plan:

    Nobody can’t imagine the financial losses caused by accidents. So, people purchase a comprehensive car insurance policy to be on the safer side. A comprehensive plan will protect your vehicle for the below list of incidents.

  • Natural or manmade damages:

    A comprehensive car insurance policy will cover the vandalism caused due to natural or manmade incidents. If your car gets damaged in a hailstorm, earthquake, flood, cyclone, terrorist attack, etc then the insurance provider will cover the damages.

  • Fire and explosions:

    Damage caused due to Fire incidents, falling objects, missiles, etc. will be covered in the policy.

  • Protection from Theft:

    If the car has been stolen then a comprehensive car insurance policy is always there to protect your car.

  • Doorstep pickup and repairing:

    In a comprehensive car insurance policy your car will be picked up from your home and again drip bank to home after repairing:

  • Cashless repairing service:

    You can repair your car at any network garage without paying a single penny.

  • Instant claim settlement:

    You can take instant claims in a comprehensive car insurance policy.

  • Third-party liability losses:

    Apart from this, a comprehensive car insurance policy will also cover your third-party liability damages. Like a person getting severely injured in an accident or getting permanently disabled then the comprehensive car insurance will pay off the medical expenses.

  • Benefits of a third party car insurance plan:

A third party car insurance policy will only protect you from legal liability. Like the damages caused to the property of any other person are covered. If a person died in an accident involving your vehicle then the insurance company will not provide any type of help. Moreover, not any type of physical damage caused to your vehicle will be covered in the policy.

Difference between Third Party Insurance and Comprehensive Insurance

  • A Third Party Car Insurance policy is the basic plan that provides protection from legal responsibilities. Whereas a comprehensive car insurance plan will cover all the possible damages caused to the car.
  • A comprehensive car insurance policy will cover your third party liability, but your third party car insurance policy will not provide comprehensive protection.
  • A Third Party Car Insurance policy has a low premium as compared to a comprehensive car insurance policy.
  • Generally, most people opt for a third party insurance plan in fear of traffic rules. Yes, it is mandatory to have a third party liability coverage as per the Motor Vehicles Act, 1988.
  • A Third Party Car Insurance policy only includes personal accidental cover for your protection. Whereas a comprehensive plan is entirely about your vehicle and your personal protection.
  • A Third Party Car Insurance policy will pay for the damages of another person’s car. But the comprehensive policy will cover your own car along with the other person’s vehicle.

Conclusion:

After knowing the difference between comprehensive and third-party insurance policy, we came to the conclusion that a comprehensive policy is best for your car. You can purchase car insurance online to get an attractive discount on the premium. Additionally, you can also get car insurance quotes from various companies on a single website.

We can also say purchasing a comprehensive car insurance policy tends to be a smarter choice. There is not just a single reason but a list of benefits is provided under a single plan. Otherwise, if you take a third party, then you have to purchase additional coverage for your own car because it will not cover that. Also purchasing multiple plans is totally a silly choice if you are already getting all the benefits in a solo plan.

Apart from this, if you have already purchased a third party car insurance policy for your car then you can switch it at the time of renewal. You will find a number of online car insurance to renew your insurance policy. Of course, you have to pay a higher premium for that. But you can completely believe that it will surely prove to be a comfort in the future.

How To Get The Cheapest Car Insurance Policy?

Cheapest Car Insurance Policy

A car insurance policy will protect you against the expenses of damage and injuries caused in a car accident. The worst traffic and road conditions are also the main reason to take a car insurance online policy. It becomes very challenging when you have to pay the complete repairing bill from your pocket. Purchasing car insurance will not only save your money but also protect you from legal formalities. Everyone wants to get complete protection and excellent service by paying low premiums. The car insurance company decides the premium according to the model, variants, and usage of the car. We have provided some tips for you to reduce your premium.

Follow these ways, To get the best car insurance policy

Increase deductibles: 

A deductible is the amount of money that customers have to pay irrespective of the total billing amount. You have to choose this amount at the time of purchasing or renewing the car insurance policy. The higher deductible you opt the lower will be the premium. The risk of the insurance company getting decreased hence the amount of premium will be reduced. You can save a good amount of money but choose high deductibles. But make sure that you can afford the deductible amount easily. Else, if you will not be able to pay the deductibles then it will cause problems at the time of claiming.

Collect No claim bonus:

If the customer does not make any claim in a single year then the insurance company will reward you with no claim bonus. If you don’t make a claim for more than one year then it will further be increased. You can reduce your premium at the time of renewal by claiming this no claim bonus. Try to avoid accidents and make frequent claims to accumulate more no claim bonus.

Transfer No claim bonus:

No claim bonus is linked with the policyholder and the vehicle has no role in it. If you have purchased a new car and have no claim bonus in your previous car policy then you can transfer it. The premium amount of the new car will be reduced by transferring no claim bonus. To transfer your no claim bonus, you have to inform the insurance company. Further, the company will provide a no claim bonus certificate that will be valid for 3 years.

Compare and buy:

It is the most important part that everyone should check before purchasing car insurance online. You can compare online quotes of all the car insurance companies available in the market. This will help you to choose the cheapest and the best car insurance policy.

Install tracking and anti-theft devices:

Installing an anti-theft device in your car will secure it from getting stolen. Similarly, the tracking device will track the location of your car if someone stole it. It would reduce the risk of the insurance company resulting in automatically reducing the premium cost. Customers can approve their anti-theft device from ARAI for more reliability.

Renew the policy on time:

Renewing a car insurance policy has multiple benefits. If your policy gets lapses then you have to purchase a new insurance plan for your car. In this case, the insurance company will inspect your car and the chances of an increase in premium are higher. Moreover, once the policy gets lapses, the entire no claim bonus will get void. Renewing a car insurance policy before the due date will also protect you from additional fines.

Only choose the required coverage options:

You will get numerous benefits while purchasing an online car insurance policy. The premium price will increase with every benefit you opt for. So, It is not necessary that you have to choose all the benefits. 

Take membership of automobile association:

If you are certified by any registered driving school or having a membership of the automobile association, then you can ask for an additional discount in premium. You can avail of a flat 5% discount on the premium price.

Choose a single plan for multiple vehicles:

If you have more than one car then you can cover both the cars under the same policy. You can save a huge amount of money by opting for a single plan for multiple cars.

Important benefits of car insurance policies

Insurance policies are provided to reduce financial risk, whether it is health insurance, car insurance, or any other insurance. If you opt for a car insurance policy then the insurance company will look after your repairing expenses. But if you don’t take it then you have to pay the expenses along with heavy penalties. Driving a car without insurance is a crime and you will also get imprisoned for this crime.

There are benefits that you can avail from car insurance:

  • If any person dies in an accident that has the involvement of your car then you should have to face many legal formalities. You might have to pay a huge amount of fine to get out of this. A third party liability coverage along with a comprehensive plan will save you from these formalities.
  • A Car insurance policy will pay the medical expenses of the co-rider In case of serious injuries.
  • A car insurance company will pay the loss If you have damaged any social property in the accident.
  • You can take cashless service in all the network garages.
  • You will get complete protection against theft on purchasing car insurance policy.
  • An insurance policy will also cover the damage caused due to natural calamities such as floods, earthquakes, landslides, cyclones, hail, etc.
  • You will also get complete protection against several manmade calamities such as terrorism, riots, and explosion.
  • Customers can choose to add on covers along with a basic plan. Customers can also choose to auto-recharge the sum insured amount if their basic sum insured gets exhausted.

Top Car Insurance Companies That Provide Accidental Cover 

Top Car Insurance Companies That Provide Accidental Cover

There are multiple car insurance companies existing in India that deal with car insurance. Car insurance is not just financial protection against damage but it also becomes a necessity for every car owner. Apart from financial help, it also protects the car driver from legal formalities. At times when huge damage is caused to the other person’s property then only a car Insurance will help you to get relief from legal complaints. Is it important for a car insurance company to maintain its claim settlement ratio to create an existence in the market? Customers can either purchase car insurance online or consult an agent or insurance broker.

Before proceeding to purchase a plan, we must look for the claim settlement ratio of various insurance companies. If the company has a good settlement ratio then they must have more satisfied customers. Here is the list of companies that have a good settlement ratio in car insurance:

Bajaj Allianz Life Insurance:

Bajaj Allianz Life Insurance company provided Premium policies with comprehensive coverage to all unfortunate accidents. This insurance company provides a variety of plans for the benefits of customers. You can include your family members along with you for extra protection. Customers can avail up to 25 lakhs of the sum insured for the protection of their family. Bajaj insurance company provides a 93.95% claim settlement ratio.

IFFCO Tokio General Insurance:

IFFCO Tokio deals with the best comprehensive protection to its customers. It has a claim settlement ratio of 92.88% and has a good customer base. It covers all the financial risks of accidents, disability, deaths, and injuries. Customers can avail attractive discounts on car insurance renewal with IFFCO Tokio. You can also claim additional benefits on permanent partial disability as per the degree of disability.

Religare Insurance:

Religare insurance company provides a personal accident cover of 10 lakhs to 50 lakhs. This amount is sufficient to cure any disability caused in a serious accident. The Religare insurance policy will cover the children for more than 3 months. Along with car insurance, it also deals with other insurance products such as health, general, bike, and travel insurance. Customers can purchase an online car insurance policy from Religare to get attractive discounts and lower their premiums.

Max Bupa Insurance Company Limited:

Max Bupa is a well-established company dealing with a wide range of personal accident covers. This company primarily deals with health insurance and later comes with other insurance products to gather more customers. Customers can get the sum insured of up to 25 lakhs By purchasing car insurance online.

In case of the demise of the policyholder, the company will provide child education benefit either of INR 50,000 or 5% of the sum insured. In addition, the family will also get Rs 5000 as the funeral expenses. Along with serious accidental injuries, it also covers minor injuries, permanent and temporary disabilities.

HDFC ERGO General Insurance Company:

Customers can check online car insurance quotes of HDFC ERGO Insurance Company to get attractive discounts on premiums. This company provides the best financial protection for vehicle damage as well as for accidental injuries. This insurance will cover the risk of accidental deaths, all types of disability, bone injury, burn, and ambulance cost. You can take this policy for yourself and your family members to protect them from unexpected accidents. Injuries caused due to alcoholism, sport driving, mental disabilities, and high-speed driving exclude in this insurance policy.

How to check quotes of car insurance online?

Customers can buy car insurance online to get desirable discounts on premiums. There are so many online websites that provide car insurance quotes of all the insurance companies in a single platform. Customers can also compare among all the insurance companies on the same website and purchase car insurance online. Along with low premiums, you can also opt for other optional services at the time of buying the insurance plan.

Benefits of renewing car insurance online:

  • You can avail up to a 60% discount on premium rates.
  • All the insurance companies provide default third-party coverage on purchasing or renewing a policy online.
  • You don’t need to consult a broker or agent while buying the policy. An Online advisor is always there to help you in clearing your doubts regarding the benefits, discounts, and quotes.
  • Customers can continue to avail their no-claim benefit if they renew their policy on time.
  • This will also protect you from the hassle of traveling and going to the insurance company. You can renew your policy online from any websites sitting at your home.
  • Renewing an insurance policy online is also time-saving. It will not take more than 20 minutes to renew a policy online. You have to check the quotes, compare them, fill the renewal form, and pay the premium to renew your policy.
  • Online car insurance renewal will also protect you from a lot of paperwork. The policy documents will be emailed to you and you don’t have to carry them every time to renew the policy.

Apart from this, there are many other factors that affect the premium rates. We all know that the premium rate is decided according to the model number, variants, and usage time of the car. So, if you have an old car then it needs high maintenance so the premium rates are also high for old models. Moreover, the same condition applies to expensive cars. Expensive cars have imported parts hence need a high cost to import the parts. So, the premium rates will be increased automatically for all expensive cars.

Tips to save money while renewing a car insurance policy

car insurance renewal

Car insurance plays an important role in providing comprehensive safety to your car as well as to passengers. You should be extra selective while choosing for car insurance as it is a matter of money. To purchase a car, you need a huge amount of money and to maintain that car it needs a little more. So, car insurance will financially help you in the maintenance of a car in case of an accident. After purchasing it once, renewing it again a year later is the most terrifying and challenging task for every car owner. If you want the best car insurance renewal then you must need to prepare a checklist of the coverage options. Else you will miss to take any important coverage and regret it later. Apart from this, you can also choose to renew your car insurance online. You will get a better comparison of all the benefits, exclusions, and deductibles.

Benefits of renewing car insurance online

Most of the proper preference to buy or renew car insurance online. The main reasons that encourage them to buy it online are:

  • No need to consult an agent: If you are going to buy car insurance online then you don’t have to ask an agent for your choices. You can select the coverages and premiums as per your requirement.
  • Zero Paperwork: Another benefit of buying or renewing car insurance online is that you don’t have to collect and assemble documents in a file. The whole process is digitalized, so just fill the form online, upload the documents and policy documents will be mailed to you.
  • Time-saving and convenient: Buying an online policy is anytime more convenient than searching it offline. It is easy to compare, understand the terms and conditions, effortless, and saves a lot of time. You don’t have to travel to various insurance companies in search of suitable plans.
  • Easy comparison: Different insurance companies make available numerous offers, coverage options, and premium variation as per the model of vehicle. So, you can sit at your home and browse for quotes from multiple insurance companies.
  • Cost-effective: Renewing car insurance online is an economical idea as you can save a handsome amount of money. It will also eliminate the involvement of a middle man that also costs you money, you can avail various discounts and there is no paperwork.
  • Cashless facility: With the online facility, you can pay premiums with credit cards, debit cards, and net banking. You don’t have to carry hard cash to the insurance company in order to renew your insurance policy
  • No need to carry hard copies: One more benefit of online car insurance renewal is that you don’t have to keep searching for hard copies. You already have the soft copy of policy documents saved in your mail that you can access from anywhere.

How Can You Take Right Decision?

Among all the insurance sector in India, car insurance companies are emerging these days due to extra traffic and equally more road accidents. So, it is important to save money if you own more than one four-wheeler. You can also take a combined insurance policy for both vehicles. Otherwise, separate insurance policies will surely put a hole in your pocket. There are some tips that you can follow while renewing motor insurance online:

  • Compare multiple policies: If you are not getting proper service with your previous insurance provider then continuing with the same for next year is total stupidity. You can search for online quotes from other top car insurance companies and choose the best from them.
  • Don’t forget to read policy documents carefully: By chance, if you miss reading some clause at the time of purchasing the policy then later it will be stressful. There are certain hidden clauses mentioned in the policy that you should read before purchasing so that you don’t have to face any problem at the time of making a claim. Know the value of your vehicle: Calculating the value of your vehicle will save you from paying extra premiums. So, make sure to check the market value of the car and negotiate with the insurance provider.
  • Take advantage of no claim bonus: On not taking any claim for one year all the insurance companies in India reward you with no claim bonus. So, if you are making a claim after one year of interval then don’t forget to take the privilege of no claim bonus. It will reduce your premium price up to 50% with respect to the no claiming year.
  • Claim higher deductibles: Choose for high deductibles while renewing your car insurance online as it will help to decrease the premium amount. The deductible amount is up to 30% of the total sum insured that you have to pay at the time of making a claim. The rest payment will be completed by the insurance provider.

Conclusion:

There are multiple types of car insurance policies available in the online market. Some of them cover the losses of car damage while others pay for the bodily injury of the passenger. While purchasing car insurance, it is vital to look for the safety of both. You can’t neglect the medical expenses over vehicle repairing costs. Apart from the basic plans all companies provide add on covers for extra security. If you want to purchase these add on covers then you have to pay an extra amount of money. This may include engine protection, no claim protection, key protection, daily allowance benefit while your vehicle is at the garage for repair. In India, the government has imposed a high penalty for owners who don’t have vehicle insurance. So, it also protects you from fine and legal formalities.