The law says Third party insurance is the minimum level of requisition for car insurance. It covers a third party and not your car or you, the third party’s property and the passengers travelling in either car. To explain you a little more about the third party insurance let us take for instance that there are two cars and 2 drivers. Suppose Car I has a third party insurance and Car II’s insurance is irrelevant. Let us suppose that an accident took place between Car I and Car II and Car I is to be blamed for the accident. In such Scenario Car I’s insurance company will be responsible for Car II’s damage and any injuries to Car II’s passenger(s). Car I won’t be covered under such insurance although Car I’s passengers would be covered.
Now the question could be – When to go for third party insurance? Third party insurance is appropriate for cars of low value. One has to consider how much it costs to claim against the cost of replacing his/her vehicle. Many a times, the car insurance exceeds and the increased premiums for the next 5 years are rather more expensive than replacing a vehicle of low value yourself. Well, this is such scenario where third party car insurance should be considered.
Now there are two types of insurance that exists in the market- comprehensive insurance and third party insurance. You should be very clear about the benefits of each of them and then decide whether or not the insurance perfectly fits your requirement.
Third party insurance will cover the damages caused due to your fault to other vehicles but it will not cover damages to your own car. While comprehensive insurance covers damages to your own vehicle and other’s vehicle as well as the injuries that happened to passengers in both the vehicles.
There are occasions when this third party insurance doesn’t cover for any damages, for example due to any natural calamity, theft or fire. On the other hand, comprehensive insurance covers them all. Plan your Insurance!
When the value of your car is pretty low, it is advisable to go for third party insurance. This is because it is cheaper to repair your car for any kind of damages that happened to your car than to pay the high premiums of comprehensive coverage.
So it is clear that third party is covered in the insurance since the beneficiary is someone other than the two parties among which the contract is made – the insured and the insurance company.
A very interesting fact that every car owner should know is, keeping the mileages down, helps the car owner get a fairly cheaper quote on car insurance.
Make sure you compare various car insurance quotes available in market, check the group your car falls in and boost the car’s security.
Save time on your car’s insurance! Save Money on your car’s insurance!
