Automobile

Limitations of Third-Party Coverage for Car Insurance Policy Explained 

Third-party car insurance is a mandatory requirement by the government of India if you are driving on Indian roads. This insurance covers damages to the property and vehicle of a third party when you are involved in an accident. This also covers any injuries caused to the person who is driving the other vehicle. Third-party car insurance takes care of your liabilities when there is damage caused due to your vehicle in an accident. 

Among the two types of car insurance, third-party car insurance is one of them, and the other is comprehensive car insurance. Comprehensive car insurance is an extensive coverage that has more benefits and features than the other kind. It has the potential to be tailored according to your needs using the chargeable add-ons. Third-party car insurance, on the other hand, has limitations and does not provide for all scenarios that can arise while driving a car. Let us take a look at the shortcomings of opting only for third-party car insurance.

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Limitations of a third-party car insurance

Third party car insurance is a basic package, however, it comes with limited benefits. Some of the limitations of third party insurance do not allow you to enjoy extensive coverages. Let us take a quick look at all that you’re missing out on if you bought third-party insurance coverage. 

1. No coverage on extensive add-ons  – There is no scope for you to purchase add-ons when you are opting for third party insurance. Here are a few things you will be missing out on. Third-party insurance does not cover beneficial add-ons like zero depreciation, breakdown assistance, tyre protect cover, engine & gearbox protection, return to invoice, consumable cover, and passenger cover. If these beneficial add-ons have been missed while buying a car insurance policy, you are likely to miss a robust technical assistance for your car. 

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2. Damages to your own car are not covered – The most important factor, that is your own car is not protected in case of an accident under third party car insurance. If your car is damaged in any way, you will have to pay from your pocket. 

3. In case of car theft, you are not covered – In case of car theft, you will not be given any sum by the insurer and have to suffer the full extent of losses in third party car insurance. 

4. Damages due to natural disasters are not covered – Damages caused due to earthquakes, floods, and other natural disasters cannot be avoided. These damages may be to an extent that they might render the vehicle useless. This is not covered if you have third party insurance. 

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5. Damages due to fire or other man-made circumstances are not covered – Sometimes, there are things that you cannot control and the circumstances may force you to abandon your possessions. In case of riots, war or any other man-made situation, your vehicle is not covered and you will have to pay for repairs of your car. 

What’s the best alternative?

It is clear from the above-mentioned points that a Third-party Liability insurance cover just isn’t enough for your car. A comprehensive car insurance policy can provide you with solutions for all the above-mentioned problems. 

It is evident that third-party insurance comes with cheap premiums but also with massive limitations. However, comprehensive car insurance is a better fit for you if you use your car daily and wish to ensure the safety of the vehicle as well as the passengers at all times. Comprehensive insurance is the best choice you can make as third party insurance has nothing much to offer. 

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