5 Reasons Why A Third Party Car Insurance Is Not Enough?
Car insurance is typically available in the following types, namely, third-party car insurance, standalone own damage policy, comprehensive car insurance and zero depreciation car insurance. Out of which, third-party car insurance or third-party auto insurance is mandatory as per the Motor Vehicles Act (1988).
However, this policy offers limited coverage for your four-wheeler and the policyholder. Let’s find out why this policy may not be sufficient.
Third Party Auto Insurance: 5 Reasons Why It Is Not Enough
Damages To The Four-Wheeler Remains Uninsured
Imagine a situation where your four-wheeler is involved in an accident which leads to damages to a third party as well your vehicle. In such cases, if you only have third-party car insurance coverage, then financial compensation will only be given to the third party and not your car.
The above situation demonstrates how third-party insurance does not provide sufficient coverage you need at that time, leaving you to cover the costs of repairing your four-wheeler out of pocket.
While the third-party car insurance price is low compared to other policies, it is useful if the damage is caused only by a third party.
Does Not Offer Coverage Against Theft of a Four-Wheeler
There is a significant risk that your four-wheeler can get stolen. Therefore, to ensure protection against such a situation, you would want to protect your four-wheeler in advance. However, to help you take care of this, third-party auto insurance will not be enough as it does not ensure protection against the theft of the four-wheeler.
Therefore, it is better to take comprehensive car insurance or opt for a standalone car insurance plan along with third-party car insurance.
Add-Ons Cover Options Are Not Available
Usually, including an add-on cover to your insurance policy is a great way to increase its benefits, and the same is the case with four-wheeler insurance as well. However, if you just have third-party auto insurance coverage, you are not given the option of adding add-ons to your policy.
Add-on covers such as engine protectors, consumables cover, and others can only be included within a comprehensive car insurance policy.
Third-party Car Insurance Limits For Personal Accident
The coverage for a personal accident provided for the owner or driver within a third-party auto insurance policy is much less compared to other policies. The specified limit for personal accident coverage is subject to the terms and conditions mentioned in the third-party insurance policy.
However, with the current healthcare costs, such limited coverage might not be adequate. Your medical expenses might exceed the insurance claim amount received in case you deal with a personal injury while driving the four-wheeler.
Lack Of Peace Of Mind
Third-party car insurance compared to comprehensive car insurance offers limited peace of mind. A comprehensive policy allows you to be stress-free as you can claim the benefits, even if it was the other driver’s fault, in the event of an accident. These benefits cannot be availed of with a third-party auto insurance policy.
To Wrap It Up
You must choose an insurance plan that offers adequate coverage and charges a fair premium, ensuring that you are well-protected without straining your budget. Ensure you review the car policy’s exclusions and inclusions to make an informed choice. This will ensure complete peace of mind while driving on the road.