Third-Party vs Comprehensive Car Insurance

After buying a car, the next thing motorists need is car insurance. There are two major types of car insurance; third-party cover and comprehensive cover. Many people don’t seem to understand the difference between these two plans. This article explains the two insurance types in detail.

Third-Party Insurance

According to the law, all vehicles on the road must have insurance. Third-party insurance is the minimum insurance level. This plan covers a motorist against all damage caused to third parties as a result of an accident that is ruled as their fault. That means if you hit another vehicle, and it’s entirely your fault, the third-party insurance will take care of the damage.

The advantage of third-party insurance is the affordability, but then, it doesn’t pay for the damage to the policyholder’s vehicle. So, while the insurance will take care of the damage caused on the car you hit, you will have to repair your vehicle at your own cost.

Comprehensive Insurance

As the name suggests, this insurance covers policyholders against all damages caused directly by themselves or others. All damages regardless of their nature, are covered, be it theft, vandalism, accidents, etc.

Comprehensive insurance is the best choice as it gives vehicle owners peace of mind; you never know when disaster will strike. But unfortunately, the costs are very high. Insurance companies charge an average of 5% of the vehicle’s value as the annual comprehensive cover costs.

Wrapping Up

There you have it folks, a detailed explanation of third-party and comprehensive insurance. So, what is the best choice? Comprehensive insurance is the best as it covers all damage costs, be it car repair or replacement and medical expenses. At the end of the day, it narrows down to budget? How much do you have for insurance?