Home Finance Difference Between Own Damage And Third Party Car Insurance Policy

Difference Between Own Damage And Third Party Car Insurance Policy

Difference Between Own Damage And Third Party Car Insurance Policy

by Ali Haider
car insurance

While looking for your car insurance renewal policy, you may have run into words like Own Damage and Third-Party Liability. The most fundamental types of coverage that your insurer will provide are those. After choosing a plan, you can go into the specifics of the policy, such as the duration or add-ons. But first, it’s crucial to know what works for you.

Which is a better policy between own damage and third-party car insurance?

You must understand the comprehensive insurance meaning. Before the requirement for long-term Third-party coverage on new car insurance , suitable for three years, those seeking comprehensive insurance would choose an annual Comprehensive Car Policy. Because broad coverage was offered for an equal amount of time, there was no uncertainty between Third-party and Own Damage.

We need to determine which form of policy is better for you now that long-term third-party insurance is required for new cars for three years. So let’s break down these plans and comprehend the various coverages they offer to start.

What is third-party auto insurance, and what advantages does it offer?

Your financial security against third-party damages is provided by third-party auto insurance coverage. It implies that you are not responsible for compensating someone you unintentionally hit with your vehicle. Why so? Due to the terms and conditions of the policy, your auto insurance company will pay this sum on your behalf.

Advantages of third-party automobile insurance

The advantages are listed below.

  • property harm to third parties
  • coverage for services supplied by third parties
  • Indemnification for death
  • Coverage for the monetary obligations you face if you unintentionally hurt someone or harm their property.

Own damage coverage: Definition and Advantages

Own damage auto insurance protects you from specific financial losses incurred as the owner of the insured vehicle.

Benefits of Car Insurance for Own Damage

The advantages are listed below.

  • coverage for accident-related car damage
  • Theft protection Insurance against artificial or natural disasters
  • Fire harm
  • Option to customize the plan with add-ons

When is best to purchase third-party insurance?

Here are a few scenarios in which third-party insurance is an option.

  • If you legally want to drive a car in India, get third-party auto insurance.
  • You can avoid being fined by traffic cops for driving without a legitimate auto insurance policy by purchasing at least this plan.
  • You may get this entire package if you only sometimes drive safely.
  • Purchasing the required coverage can also assist you in providing just compensation to those you have unintentionally injured. They can receive prompt care or have the harm you might have done to their property repaired.

Keep in mind that if you choose to purchase merely a Third-party Liability coverage, you put yourself at risk of losing money if your car is damaged. If you want comprehensive auto insurance coverage, consider purchasing the Own Damage policy.

Who is eligible for Own Damage insurance, and when?

When seeking broad or thorough coverage, you should purchase a Third-party Liability plan and damage insurance. It will offer comprehensive protection against practically all losses associated with operating a vehicle.

People who live in theft- or flood-prone areas can also choose this insurance because the Own Damage covers protection against theft and damage from natural calamities.

Additionally, you need to purchase a Comprehensive Automobile Insurance policy if you want protection from damages to your car while abiding by the law. These are the plan’s coverage details.

  • coverage for third-party liability
  • Own Damage Insurance
  • the choice to modify the plan with add-ons
  • Personal Accident Insurance (it is mandatory to buy this as a separate coverage)

How can you better plan your purchase of auto insurance?

  • You can choose which type is best for you now that you know the concepts of Own Damage and Third-party Liability insurance. Here are a few additional ideas to help you, this time, better plan your auto insurance purchase.
  • Compare Third party Car Insurance plans online to find the most outstanding coverage, services, and pricing.
  • Check out the insurance provider’s reputation by reading reviews and endorsements from past clients. Check the company’s claim settlement ratio as well to determine how likely it is that your car claim will be successful. You may sense the insurer’s customer satisfaction reputation from all of this.
  • Looking for value-added services with your insurance policy will be more accessible overall. At ACKO, we provide free pick-up and delivery following auto repairs and rapid claims for minor damages. Please be aware that just a few cities offer this service.
  • Plan to buy your auto insurance at least a few days before the current policy expires to give yourself time to shop for a better deal.
  • Even online third-party auto insurance is an option.
  • Last but not least, if you want to lessen the financial losses associated with car damage, always choose sufficient coverage.

Is it legal for me to only have an Own Damage policy while I drive?

You risk third-party responsibilities and penalties if you drive a car with only your Damage coverage. It is required to purchase at least a third-party policy. Driving a car with only Own Damage coverage is therefore prohibited.