Do I need both comprehensive and third party insurance?
Asked by: Hiram Dickens | Last update: December 5, 2025Score: 4.1/5 (23 votes)
Do you need third party if you have comprehensive?
Even if you have comprehensive insurance, you still need CTP insurance because it's mandatory and covers injuries or deaths in road accidents. Comprehensive insurance, which is optional, covers only property damage.
Do you have to have both comprehensive and collision insurance?
Some insurers require that you purchase collision and comprehensive insurance together, while other insurers may allow you to purchase these two types of coverage separately. Collision insurance pays for: Damage to your car in an accident you cause. Damage to your car if you hit an object such as a fence or pole.
Should you get comprehensive or third party?
Though comprehensive car insurance may cost you more than third party property damage, it offers an extensive range of features and benefits. These include cover for: the value of your car (amount covered) or your car's market value (if you have chosen this option).
Is it necessary to take 3rd party insurance?
To wrap up, you should be aware that third-party car insurance is a requirement for driving legally on Indian roads. This liability insurance ensures you won't have to handle the financial responsibility of compensating third parties for losses or injuries due to accidents involving your vehicle.
Third Party VS Comprehensive Car Insurance
What is disadvantage of third party insurance?
One of the major drawbacks of Third party car insurance is its narrow coverage. The policy does protect you against claims from others when you accidentally cause any damage or injury. However, it never covers any damage to your vehicle or other property, nor does it come to your rescue when any theft occurs.
When should I switch to third party insurance?
Third-party insurance can be a great budget-friendly option if you have an older car or if you can afford to replace your vehicle out of pocket. However, for those who depend on their car for daily use, or those with finance owing on their vehicle, comprehensive insurance may still be the better choice.
Do I really need comprehensive?
If you don't have a loan or lease on your car, comprehensive insurance likely isn't required. And if the vehicle isn't worth much, it may not make financial sense to keep the coverage. Compare the value of your car to your comprehensive deductible plus the amount you pay for the coverage.
Which is better fully comprehensive or third party insurance?
Your comprehensive insurance could also cover damaged windows or windscreens, replacement locks, trailer cover, and any audio or telephone equipment. You could receive monetary compensation for any personal belongings that are stolen or damaged too. Third party insurance would not cover these features.
Which type of car insurance is best?
Comprehensive Car Insurance Policy
This type of insurance policy provides complete protection. It covers both third-party liabilities as well as damages to your vehicle. Also, with a comprehensive cover, you can get compensation if the accident results in your death; the family members will receive the benefit.
When should you drop comprehensive coverage on your car?
The ten rule is this: Once the value of your vehicle is less than ten times what its insurance premiums are, it's more economical to drop comprehensive and collision coverage than to pay for them.
Is it better to have a $500 deductible or $1000?
Remember that filing small claims may affect how much you have to pay for insurance later. Switching from a $500 deductible to a $1,000 deductible can save as much as 20 percent on the cost of your insurance premium payments.
What happens if you don't have comprehensive insurance?
Answer: Comprehensive insurance covers your vehicle for things that are "other than collision," such as the theft of your vehicle. Unfortunately, without comprehensive coverage, there is nothing your car insurance company can do for you.
Do you have to have comprehensive insurance on a financed car?
If you have an auto loan, the lender will likely require you to have comprehensive and collision coverage, in addition to liability and other legally required coverages, which your lender may refer to as "full coverage." Lenders may also require additional coverages, such as uninsured motorist coverage or gap insurance ...
Does comprehensive insurance cover engine failure?
It covers the damage caused to your car in an unforeseen event and the other person's car in case of an accident. Mechanical problems like engine failure are covered by car insurance only if it occurs because of an accident, flood, fire or vandalism.
What are the disadvantages of fully comprehensive car insurance?
There are downsides. If you are in an accident, comprehensive insurance won't pay for the damage: collision coverage does. Comprehensive insurance may also be expensive if you are purchasing it along with collision insurance.
Does comprehensive insurance cover an at-fault accident?
Comprehensive coverage does not cover damages caused by hitting another vehicle or object. These incidents are covered under collision coverage.
Why is comprehensive insurance so expensive?
The cost of your comprehensive insurance might increase if you file a claim, live in an area with high crime or bad weather, or if repair costs rise. Filing a claim for something comprehensive insurance covers—like vandalism or a cracked windshield—could result in higher prices.
Do I need both collision and comprehensive?
Comprehensive and collision coverage are both equally important for protecting your vehicle from physical damage. You should ultimately choose the coverage that's right for your budget and needs.
Does Dave Ramsey recommend full coverage car insurance?
Dave usually recommends full coverage for car insurance, which includes both comprehensive coverage and collision coverage. These are often purchased together since they provide similar protections, but are actually distinct coverages.
How much comprehensive deductible do I need?
How much comprehensive deductible do I need? Comprehensive deductibles can range from $100 to $2,000 in most states. The right comprehensive deductible amount for you depends on your preferences and needs for out-of-pocket costs and your overall insurance rate.
Can I change from third party to comprehensive?
You can also visit your insurance provider or agent and ask them to convert your third-party insurance into a comprehensive one. They will ask you a few questions, paperwork, and inspections to complete the process.
How to change comprehensive insurance to third party?
If you want to change the level of cover, you'll need to start up a NEW Comprehensive Insurance or Third Party Property Damage policy online, and cancel the existing policy. Cancelling within the cooling off period.
How much damage does third party insurance cover?
Third party property damage covers liability for accidental damage to other people's vehicles and property arising from the use of your car, up to $20 million.
What is the difference between third party and fully comprehensive insurance?
Third party cover will never pay for damage to your car. Fully comprehensive cover will also pay for damage to your car; although if your car is damaged by another driver and you are injured their car insurance policy will pay out.