Why is collision and comprehensive policy a third party liability?
Sakshi used to have a car insurance policy for her vehicle. Sadly, it ran out recently and she didn’t want to continue with the same policy anymore. That insurance policy provided a basic cover and Sakshi has recently come to the realization that a basic cover won’t fulfill her needs anymore.
This is why she is currently taking advice from anybody and everybody regarding the car insurance policy. One of her friends recently told her that she should look into a collision and comprehensive car insurance policy. However, Sakshi doesn’t know what that means.
Are you on the same page as Sakshi? Do you want to buy a car insurance policy and you have been told that comprehensive insurance and collision insurance are the best? If yes, then you are in the right place. Because today, we are going to cover why collision and comprehensive policy falls under third-party liability. We’ll also look at why you should buy that kind of car insurance policy.
The Meaning of Collision Insurance and Comprehensive Insurance
A collision cover pays for damage to the car after a collision with an object. This object can be a telephone pole, a guard rail, or a mailbox. This damage cost also covers unexpected instances where the car has completely flipped over.
Collision cover reimburses one for the costs of repairing a car. Deductibles are often deducted from this amount. Some collision coverage insurance also covers damages caused due to potholes.
On the other hand, comprehensive coverage provides protection against damages caused to the car due to any other disaster apart from collisions. In this case, the costs of cover are significantly less than the cover for collisions.
Other damages that are covered in a comprehensive insurance policy are:
- Contact with animals
- Fire
- Natural disasters like floods, earthquakes, hurricanes, tornadoes, and volcanic eruptions
- Vandalism
- Riots
- Theft of the entire car
- Theft of parts of the car
- Fallen objects like ice, branches, trees, and projectiles
- Broken windshield
If you want to finance the purchase of your car and get proper coverage, then you should opt for both collision and comprehensive coverage.
What is Third-Party Liability and Car Insurance?
Till now, we have looked at the meaning of collision insurance and comprehensive insurance. Now, let’s move on to discuss the meaning of third-party car insurance cover.
Third-party liability insurance basically provides financial cover to the insured individual against any legal liabilities arising due to loss or damage to third-party property or person. According to the Indian Motor Vehicles Act, a third-party liability cover is mandatory under law and is a basic requirement under a vehicle’s insurance policy.
There are also some people who get confused regarding whether they should opt for a comprehensive car insurance policy or a third-party car insurance policy. It should be noted that a comprehensive car insurance policy provides complete overall protection against all accidents and collisions. A third-party liability car insurance provides cover against legal liabilities arising due to damages or injury caused by the insured to a third party.
The Advantages of Third-Party Car Insurance
A good third-party car insurance policy provides both collision and comprehensive insurance. The benefits of getting such insurance are:
- Property damages to the third party
- Personal accident cover
- Additional covers
- Simple buying process
- Cover against death or bodily injury to a third party
- Easy calculation of premium by using a premium calculator
Apart from this, it should be noted that third-party car insurance does not cover the cost of damages to the vehicle or the belongings of the vehicle of the owner-driver in case of an accident. It further doesn’t cover for losses incurred due to theft or destruction of the car or any damages caused to the owner’s vehicle.
Why Should You Buy a Third-Party Liability with Collision and Comprehensive Insurance?
Sakshi knows about the advantages of getting a third-party liability cover. And now she wants to learn the reasons why she should get car insurance with both collision and comprehensive cover.
Let’s help her with that now.
- Drive Legally Without Any Issues
According to the Motor Vehicles Amendment Act, 2019, it is required for an individual to insure a car if one wants to drive on Indian roads. One can easily avoid hefty fines by opting for third-party car insurance.
- Save Your Time
It is easier for customers to purchase third-party car insurance in just a few clicks. This will save your time and your money as you can buy the car insurance policy you want from the comforts of your home.
- Coverage In Case of Personal Damages
In case of an accident or an unfortunate event, third-party car insurance will ensure that you have coverage for the death of the third person. You can also get coverage against third-person property damage or any other liability.
Beyond all this, comprehensive coverage will ensure that the owner-driver gets protection along with the third party. This is vital to make sure that the cost of damages to self are not borne by the policyholder alone.
Additional Cover for Protection!
Sakshi is still not sure if a collision and comprehensive cover are enough to fulfill her needs. This is why she is looking at options of what more she can do to make sure that she has good coverage against all possible damages and unfortunate events.
In this case, the one thing that Sakshi can do is get some additional riders or cover options with her car insurance policy. This will be the ideal option for her as it would allow her to select the additional covers and riders that she needs without being saddled with benefits that she believes are not important for her.
Sakshi is happy about pursuing this option. She has even gone through some rider options and has selected a few benefits that she wants to have. The only thing left is for her to make the payment. And she is going to do that right after finishing this article! Are you going to do the same?
