Is Comprehensive better than third party?
Asked by: Dr. George Hodkiewicz II | Last update: November 18, 2025Score: 4.4/5 (53 votes)
Which is better, third party or comprehensive?
The main difference between third-party and comprehensive insurance is the type of coverage offered. While third-party insurance only protects you against third-party damage and losses, comprehensive car insurance protects you against your own damage. In India, choosing the right type of vehicle insurance is important.
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).
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.
What are the disadvantages 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.
Third Party VS Comprehensive Car Insurance
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.
What is the risk of using a third party?
Reputational risk comes when actions taken by a third party can potentially damage your organization's reputation. It may be a publicized data breach, lawsuit, or negative public opinion about company practices — in most cases, customers will associate any news about third parties with your organization.
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.
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.
Does comprehensive raise your rates?
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 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.
Is theft included in comprehensive insurance?
What Is Comprehensive Coverage? Comprehensive coverage helps cover theft or damage to your car not caused by a collision. Commonly covered perils include vandalism, falling objects (such as hail or a tree branch) or water damage.
When to 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.
What is the difference between comprehensive own damage and third party insurance?
Own-damage insurance covers your vehicle against damages due to accidents, theft, and natural or man-made disasters. Unlike third-party insurance, it focuses on protecting your own car. For instance, if an inexperienced driver damages their own car, own damage insurance would cover the repair costs.
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.
Can I get collision without comprehensive?
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.
Do I need comprehensive insurance if my car is paid off?
Lienholders generally require you to have comprehensive car insurance coverage and collision car insurance coverage while you're paying off a loan. After the loan is paid back, and the lienholder is removed, you're no longer required to carry these coverages.
At what point is full coverage not worth it?
Paying for comprehensive and collision — the coverages that many people mean when they say "full coverage" — may not be worth it if your car's value is minimal and your policy includes a high deductible. Usually, you have to have comprehensive and collision on a financed car because most lenders require it.
Is comprehensive worth it on an older car?
While the rule for older cars was to drop comprehensive coverage after six years or 100,000 miles, modern cars last longer and cost more to repair. Most experts now recommend keeping comprehensive insurance on your car if 10 percent of the car's market value minus the deductible exceeds the premium cost.
Do you need uninsured motorist coverage if you have comprehensive?
California law does not require you to carry uninsured motorist (UM) or underinsured motorist (UIM) coverage—so, legally, you don't need either one. However, UM/UIM is an important and commonsense coverage to carry.
What are some of the downsides to third party data?
Quality issues.
The data you can buy often isn't of very high quality and, in some cases, can be flat-out wrong. Part of the problem is that data providers aren't always as concerned with the accuracy of the data they're collecting, opting to instead focus on building massive datasets that they can sell to businesses.
What is the biggest disadvantage to third party lists?
The biggest disadvantage to third-party lists is not the time it takes for the list to grow large enough to have an impact on profitability, but rather the lack of control over the quality of the list. Third-party lists are often compiled by external vendors and may include outdated or inaccurate information.
Why might you transfer a risk to a third party by buying insurance?
A transfer of risk shifts responsibility for losses from one party to another in return for payment. The basic business model of the insurance industry is the acceptance and management of risk. This system works because some risks are beyond the resources of most individuals and businesses.
Who is #1 in auto insurance?
State Farm is the largest auto insurance company in the U.S. based on written premium, or the total amount it bills customers. Progressive is the second-largest car insurance company, followed by Geico and Allstate.
Which insurance cover is best for a car?
Comprehensive Car Cover
It's all you'll ever need and all you'll ever want when it comes to car cover types. This insurance package is comprehensive and worth the hype it gets.