Why is ‘Comprehensive’ car insurance cost more than ‘Third-Party’ car insurance?

When renewing or buying a new car insurance policy, one question which always comes to our mind is which policy should we buy - comprehensive or third-Party Liability car insurance?

Both these policies help us protect our car from associated risks in their own way. The decision on which type of policy to go ahead depends on various factors. A comprehensive insurance is more expensive than a third-party insurance because of the below reasons:

1. Comprehensive includes third-party insurance, which means comprehensive has two parts to it - own damage and third-party.
2. Comprehensive gives a broader coverage and covers more risks. It covers your car damage due to accident or mishap.
3. Third-party only offers protection against the harm done to another person or their property and not to your car.
4. You will have the option of covering natural calamities like cyclones, earthquakes, etc. in a comprehensive policy.
5. Extra add-ons are available with a comprehensive policy and not with a third-party policy.

As the above reasons suggest, a comprehensive insurance policy offers better and wider coverage, hence is more expensive than a third-party Insurance policy.

How to know what type of insurance is best for you?

A comprehensive car insurance policy is what you need if you are looking for protection for both you and your car. Given that it also includes third-party protections, the plan offers a wider range of coverage. It is a good idea to acquire a comprehensive policy that provides maximum protection for your vehicle if you possess a new or expensive car. To make sure your car is well-protected, you can also select extra coverings like engine protection and other add-ons. For an old car that is no longer in good condition, a stand-alone third-party cover may be chosen.

At Jio Insurance Broking Limited we give you various options to choose from across various products and across various Insurance companies. Reach out to us to know more!