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.

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.

Reasons Why You Should Think of Buying Online Car Insurance

Buying online car insurance

For many people, buying a car is an investment for which they save money for many years. Just one accident and your investment can be in a complete loss. There are rules that have made it compulsory for every car owner to have car insurance. There is the availability of multiple car insurance companies that offers both online and offline plans. Most of the people prefer buying an online car insurance policy or online car insurance renewal to save time and efforts. For many policy buyers, buying a car insurance plan online is a smart choice. 

If you don’t know how it can be beneficial for you then go through pointers:

Comparison of multiple options of car insurance plans

When you think of buying car insurance traditionally, you need to give a lot of effort. Right from talking to the agents to visiting the insurer’s offices, all these things need to be done in case of buying insurance plans offline. Because of all these efforts, people don’t shop around to find the best option for insurance. So, you don’t compare the features, premiums, and cover of different types of policies. With the option of car insurance online, you don’t need to buy any random policy. There is numerous insurance company that offers a comparison tool on their website to find the best one for you. There will be ease of comparison that can help you look thoroughly into different plans.

No middle person or agents

You will only need an insurance agent when you don’t have any knowledge about the policies and their associated terms. They will let you know which about different policies, their coverage, and premium. Listening to all this information at once by the insurance agents can somewhat confuse you. In addition to this, agents sometimes pressurize you to buy from any specific policy.

Through online insurance buying, you will have all the information on your device’s screen. Right from choosing the plan of your choice to getting all the details, online buying of insurance will remove the need of an insurance agent. 

Evaluating the insurer’s credibility will be easy

While buying online car insurance, policy buyers mostly think of the authenticity of the insurer. What is the credibility of the insurer? This is a common question that comes to mind while thinking of buying insurance online. For a smooth process of the claims, you need to have a credible insurance company. 

You can check the credibility of the insurer via online platforms and forums. With this, you will get an idea of whether you should buy insurance from that particular insurer or not. 

A reminder of car-renewal

Forgetting the car insurance renewal is a common thing that happens with most of the people. Buying car insurance online will also give you the benefit of reminders about the premiums and renewal. With these reminders, you can manage things effectively and smoothly. Renewal of car insurance is hassle-free and can be done in a few minutes.

Enhanced transparency in the deal

There is no doubt that buying online insurance also provides an added benefit of transparency in the process. Right from policy approval to claim settlement, every step of insurance will be cleared to you. It brings out the exact information to you that you need to understand about the car insurance. You just need to pay for what you are selecting. As there will be no middlemen thus you will be able to pick the best from numerous options that insurers provide. 

Effective in saving your precious time

In this busy life, everyone is engaged in his/her professional and personal life. People hardly get time to visit the insurance company to find out about different types of car insurance. No one cannot afford to waste time searching for the best car insurance and finding the best deal. With an online option of car insurance buying, all you need to do is to make a few clicks. The best part is that you don’t have to engross in elaborated forms. It is like read, understand, and then buy the perfect policy for your car.

No or less paperwork process

When it comes to buying offline insurance plans, it comprises of various paperwork. You also need to fill a lot of forms while making the purchase of the insurance policy. If you don’t want this time-consuming process to be done then online car insurance is the best and effective option for you. You can get rid of complicated paperwork by applying online and buying car insurance.