The primary reason why people buy third party car insurance is because it is a legal mandate. The purpose of a third party car insurance plan is to minimise the financial loss that might occur due to any bodily injury or property loss or damage caused to a third party. Also, it is cheaper than comprehensive car insurance. A third party car insurance helps to cover the damages caused by your car to a third-party vehicle, property, or life. Though, as per the Motor Vehicle Act, of 1988, it is mandatory to buy at least a third part insurance, is it enough for your protection?
Well, for starters, you must know third party insurance does not provide comprehensive protection. But only saves you from third-party damage. We have discussed further reasons why third-party insurance is not enough.
Why Third-Party Car Insurance is Not Enough?
Today, road accidents in India are rising at an alarming rate. Thus, without any insurance cushion against these unanticipated but highly possible risks and losses can leave you with major financial stress, third-party insurance, as the name suggests only caters to third-party liabilities.
Below are the reasons why third-party car insurance is not enough –
- No Cover for Policyholder’s Loss
Third party car insurance extends coverage only for third-party losses – i.e., losses or damage to the property of the third-party or bodily injury. A third-party car insurance plan does not protect you in case you meet an accident or you incur a bodily injury. To protect yourself and your car you must get a standalone own damage cover or comprehensive car insurance.
- No Add-Ons
With third party car insurance online, you cannot purchase any add-ons like roadside assistance cover, passenger cover, engine protection cover, and many more. To avail of the benefit of these add-ons, you must purchase car insurance. This will keep you covered in all aspects – though the premium would be a little higher, it will be worth everything.
- No Protection Against Theft or Natural Disaster
If your car is stolen or damaged due to a natural disaster, the insurance provider will not accept the claim for the damage that occurred. Instead, you will have to bear the loss. Thus, a third party car insurance plan is not at all adequate for your car coverage.
- Your Car Gets No Coverage
Third party coverage does not cover your car. You pay the premium only to comply with the law, but your car remains uninsured. This means if your car skids and hits a tree accidentally, you have to pay for the damage caused, as third party car insurance online does not include your own damage cover. But you can definitely purchase an own damage cover to protect your car.
We can say, though third party car insurance is enough for legal compliance, when it comes to broader coverage, you will need more than third-party insurance. This is because a third car insurance policy does not cover you or the damage caused to your car. However, if you are a new car owner, or do not want to spend much on premiums, you can buy third party car insurance online.