What is the difference between third party and comprehensive?

Asked by: Prof. Clifton Hintz  |  Last update: February 11, 2022
Score: 4.6/5 (38 votes)

In general, a comprehensive car insurance policy will cover you for a wide range of damages, injuries, and loss to your passengers, your vehicle, and other property. Third party car insurance is more restrictive, covering damage to other vehicles and their passengers, but typically not much else.

Is it better to have comprehensive or third party insurance?

There are two main types of car insurance options: comprehensive car insurance and third party car insurance. Comprehensive car insurance covers you for damage to someone else's car or property and your own, whereas third party is generally cheaper because you'll be out of pocket if something happens to your car.

Why is third party more expensive than comprehensive?

Insurers said premiums were higher on third-party policies because people taking them out were more likely to make a claim, and to claim higher amounts.

What is the cheapest car insurance type?

State-minimum liability coverage is the cheapest type of car insurance. Liability-only insurance is $1,333 cheaper on average than a full-coverage policy.

Is comprehensive full coverage?

Comprehensive is a separate type of coverage from collision that protects your car from things like falling objects, theft, and vandalism. ... Collision and comprehensive insurance are often combined to protect a vehicle against most forms of damage, as part of so-called “full coverage.”

What is First, Second and Third Party Insurance - Comprehensive VS Third Party Insurance

39 related questions found

Which type of car insurance is best?

Which is a better Car Insurance? Taking a comprehensive car insurance cover is always advisable as it provides complete protection of not only someone else's car like a Third-Party car insurance, but also the Own damages to your car, as well as any injury to the owner driver.

Do you need third party insurance if you have comprehensive?

Every certified vehicle has to be covered by CTP insurance, whereas comprehensive car insurance is optional. CTP insurance only protects you from the personal injury liability that might arise if you injure anyone involved in an accident you caused.

Is it worth having comprehensive insurance on an old 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.

At what car value should you drop full coverage?

A good rule of thumb is that when your annual full-coverage payment equals 10% of your car's value, it's time to drop the coverage. You have a big emergency fund. If you don't have any savings, car damage might leave you in a severe bind.

Should you have full coverage on a 10 year old car?

Between 10 and 15 years after a vehicle's model year, full coverage is a poor investment. While the cost of full coverage by itself likely won't be more than what a car is worth, the cost of insurance is more likely to be higher than the value of the car after an accident.

When should you remove comprehensive and collision?

The general rule is that you should drop your comprehensive cover if you are paying too much based on the value of your car. Take your car's value, subtract the deductible, then take away the cost of the six-month policy.

What happens if I don't have comprehensive car insurance?

If you don't add comprehensive and collision, your vehicle will have no coverage under your car insurance policy. If you're at fault in an accident, collision coverage is the only way to make a car insurance claim for your vehicle's damage or total loss. Without it, you'll have to pay out of pocket yourself.

Does fully comprehensive cover third party?

A fully comprehensive car insurance policy offers the most coverage of the three options, so it will include everything in both third party only and third party, fire & theft. This means you'll be covered for damage you cause to another person, their vehicle or their property.

What does comprehensive third party cover?

Comprehensive car insurance covers damage to your car whereas third party, fire and theft do not when an accident is deemed your fault. Comprehensive is a higher level of insurance and therefore has you covered more than third party, fire and theft.

What are the 3 main types of car insurance?

The three types of car insurance that are universally offered are liability, comprehensive, and collision insurance. Drivers can still purchase other types of auto insurance coverage, like personal injury protection and uninsured/underinsured motorist, but they are not available in every state.

What is comprehensive car insurance for?

Comprehensive coverage helps cover the cost of damages to your vehicle when you're involved in an accident that's not caused by a collision. Comprehensive coverage covers losses like theft, vandalism, hail, and hitting an animal. ... Comprehensive coverage is an optional coverage you can carry to help protect your vehicle.

What do you mean by zero DEP insurance?

Zero Depreciation is also known as Nil Depreciation or Bumper to Bumper cover that leaves out the 'depreciation' factor from the coverage. It basically means that if your car or bike gets damaged following a collision, no depreciation is subtracted from the coverage of wear and tear of any body parts of your vehicle.

Does Comprehensive mean I can drive any car?

Just because you have comprehensive car insurance doesn't automatically mean that you can drive another person's vehicle. ... This means that if you're involved in a collision, the policy will pay for the damages made to the other vehicle involved, but you will need to pay to have the vehicle you were driving fixed.

Am I insured third party on any car?

The car you want to drive must be covered by an existing insurance policy and you must have permission to drive it. Driving other cars cover is usually only available on a comprehensive car insurance policy, so if you have third party (or third party, fire & theft) cover, you won't be covered to drive any other cars.

What does comprehensive cover include?

Comprehensive – or fully comprehensive as it's sometimes known – offers the highest level of protection. It includes all the cover you'd get with a third-party fire and theft policy, but could also protect you as a driver and can pay out for damage you cause to your own car.

Does comprehensive cover at fault?

Comprehensive insurance pays only for damage to your vehicle. Your injuries may be covered by the other driver's insurance (if they're at fault) or by your health insurance (if you're at fault). ... For accidents in which the other driver is at fault, their insurance would typically pay for damage to your vehicle.

Can I have collision without comprehensive?

Comprehensive and collision coverage are optional types of car insurance coverage. Because they are optional, some drivers may wonder whether they're really necessary. For many drivers, however, the answer is yes. That's because they cover different things, and each provides very important protection from loss.

Does comprehensive insurance cover at fault?

Comprehensive Car Insurance, you may be covered for any damage to your vehicle in the event of an accident, whether you're at-fault or not.

Does paying off car lower insurance?

Car insurance premiums don't automatically go down when you pay off your car, but you can probably lower your premium by dropping coverage that's no longer required. ... Therefore, you may have the flexibility to decrease your coverage and get a cheaper rate once your car is paid in full.

Is hitting a deer comprehensive or collision?

Comprehensive coverage on your car insurance policy typically covers deer accidents. Comprehensive coverage may help pay to repair or replace your vehicle if it's damaged when you hit a deer.