In the face of the utter unpredictability of life and its events, perhaps insurance is the sole provider of comfort. However, if not chosen wisely, even insurance can fail to be the balm of your financial headaches. This is all the more applicable to your car insurance.

When it comes to your car insurance there’re two options for you to explore- comprehensive and third-party car insurance. Now, what’d work for you, is very difficult to say as it depends on your particular needs and situation. That being said, it’s what I’ll try to answer for you with all the research I’ve done.

So, without any more delay, let us discuss comprehensive vs. third-party car insurance.

What is Comprehensive Car Insurance?

Comprehensive insurance, as the name suggests, covers a wide range of damage to your car in the event of an accident or theft. 

It also covers for you if you somehow end up causing damage to someone else’s car or property. This insurance leaves little room for worries about unforeseen circumstances.

What is Third Party Car Insurance?

Third Party Property insurance is limited in its coverage and only covers damage caused to another person’s car or property. 

It does not cover damage caused by yourself or any other person to your car. Even natural disaster or theft is off the table.

Comprehensive Car Insurance: The Pros and Cons

The right way to evaluate the true worth of something is to compare the pros and cons side by side. It’s no different when it comes to finding out how helpful insurance is. 

So, let’s delve into the pros and cons of comprehensive car insurance.

Pros of Getting Comprehensive Car Insurance 

1. Comprehensive insurance covers the total value of your car. This can either be the paid amount or your vehicle’s market value. You can choose either of these depending on your situation.
2. It covers any sort of damage caused to your car. It doesn’t matter whose fault it is.
3. It will cover any kind of damage caused to someone else’s car or property by you.
4. This insurance even covers damages in the event of a robbery or any kind of spiteful damage.
5. It’ll cover even natural disasters such as storms, cyclones, hails, etc.

Cons of Getting Comprehensive Car Insurance

1. Comprehensive car insurance will cost you comparatively more. Sometimes the cost of the damage is much less the amount you pay for your insurance.
2. You might need to pay a deductible amount before you receive the benefits.

Third-Party Car Insurance: The Pros and Cons

Just like comprehensive car insurance, you’ll need to know the pros and cons of third-party property insurance to get a clear grasp of its worth. So, let’s take a look at the pros and cons of third-party property insurance.

Pros of Getting Third-Party Property Insurance

1. Third-party property insurance is much cheaper than comprehensive car insurance.
2. In most cases, third-party property insurance will cover any damages caused by you up to $20 million.
3. It’ll cover any damages caused to your car up to 5,000 dollars only if you’re not at fault.

Cons of Getting Third-Party Property Insurance

1. Third-party property insurance will not cover any damages caused to your car by yourself.
2. It will not cover any damages caused by natural disasters.
3. You’ll need to pay extra to include fire and theft coverage.

Third Party Property Insurance with Fire and Theft Coverage

You can choose to include fire and theft coverage in your third-party property insurance. This insurance will cover you if your car gets stolen or is damaged by

fire or in the event of a robbery. However, you’ll need to pay extra to get these covered.

Even so, it’s much less expensive than a comprehensive loan.

Things You Should Consider Before Settling for Car Insurance

To get a good deal on your insurance, you’d first need to properly assess your situation as well as your needs. Without doing so, you may end up paying more than you need to. Consideration before settling for car insurance includes:

1. A good way to ensure that you get the most out of your insurance is to compare the value of your vehicle against the insurance premium along with the excess. You’ll need to find car insurance that combines cover and value with flying colours to give the right possible deal.
2. You’ll need to decide whether or not you’d require coverage for fire and theft. If there’s a significant chance of getting robbed or of a fire hazard, it’d be better to get coverage for them also.
3. You should also consider whether or not you’ll be able to pay for the repairs of someone else’s vehicle. If you can’t, at least getting third-party property insurance would be beneficial for you.
4. Another thing you need to consider is your budget. Comprehensive car insurance is usually more expensive than third-party property insurance. However, if you’re looking for something in the middle, you can always go for third-party insurance with fire and theft coverage.

What Car Insurance Should You Get?

Although it’s very difficult to say what insurance would be perfect for you, it’s possible to come up with a general guideline.

 If you’re looking insurance that covers for a long list of accidental damages both to your car and someone else’s, then comprehensive car insurance is for you. However, you should keep in mind that comprehensive car insurance is much more expensive.

On the other hand, if you want coverage only for the damages caused to someone else’s car by you, then third-party car insurance is the one for you. 

A third party covers little to no damages made to your car by yourself but is cheaper than comprehensive insurance. That being said, you can choose to include coverage for fire and theft if you’re willing to pay a bit extra.

F.A.Q.

Is it worth getting comprehensive car insurance?

According to most experts nowadays, it’s worth getting comprehensive car insurance if the premium cost is less than 10 per cent of your car’s market price minus the deductible.

Can I drive any car with car insurance? 

To get coverage, the car you’re driving needs to have an insurance policy, and you need permission to drive it. However, you can get coverage while driving other people’s cars only with comprehensive car insurance. You won’t be able to do this with third-party insurance.

How long does an accident stay on your record?

While it depends on your insurance policy and the kind of accident you got yourself into, accidents, in general, remain on your record for about 3 to 5 years.

The Bottom Line

Getting yourself car insurance is a big commitment indeed. If you’ve gone through the entire article by now, you know getting the right insurance is not about money or coverage alone. Rather a complex combination of both is needed to get you the deal out there.

Hopefully, with help from this article on “comprehensive vs. third party car insurance” and a little effort on your part, you’ll get the right deal on your car insurance without a hitch.