When you are looking for car insurance, you usually have two options: comprehensive or third-party insurance. Comprehensive car insurance covers damages to both your car and to the other person’s car or property. Third-party insurance, on the other hand, is cheaper since you will pay the damages yourself should anything happen to your car.
How Is Third Party Insurance Different from Comprehensive Car Insurance?
Choosing between comprehensive car insurance and the third party can be difficult as they both have their perks and drawbacks. However, knowing the differences can help you decide the right one for you.
- Comprehensive Car Insurance
It’s extensive car insurance available today. It covers damages to the owner’s car in case of an accident, weather events, theft, and more. Also, if the owner damages another person’s car or property, this insurance will cover the damages.
On top of this, you’ll also be covered for
- Legal liability
- Lock and key replacement
- New or old car replacement
- Emergency travel and repairs
- Towing costs
- Roadside assistance
- Belongings in the car
- Third-Party Car Insurance
The difference between the two is that the third party covers only the damages caused on another person’s car or property. Therefore, if your car gets into an accident, is stolen or damaged by fire or weather, you will pay for the repairs or replacement yourself.
Note that, third-party car insurance is not the same as compulsory third-party (CTP) third-party insurance. CTP is required by the law and will cover a car owner for liability, meaning if another person drives your vehicle and gets into an accident, CTP will cater to the legal costs.
Comprehensive Vs Third Party: Which to Choose?
Your choice will depend on various factors. Generally, third-party car insurance is suitable for someone who wants a budget-friendly car insurance option. It’s best for those driving an old or less valuable car as it still caters to the most expensive risks done to another person’s car or property. The only risk you will be running is if you don’t have the cash to pay for damages to your car in case there’s an accident.
Comprehensive car insurance, on the other hand, is expensive but offers you peace of mind. It properties you and the other persons should there be an accident. It also offers several other benefits like towing, windscreen replacement, etc. If you have an expensive car or you haven’t finished paying for it, you should opt for this insurance type.
How to Get Cheap Third Party Car Insurance
Although third-party car insurance is generally cheap, you can reduce your premiums in various ways. Driving safely overtime is one way to build a no claims discount. Although it can take a while, the discounts offered are worth the wait and the effort. Also, make sure to compare car insurance third-party only companies so that you get the best deals possible.
If you want peace of mind and you don’t mind paying the extra cost, comprehensive car insurance will be the best for you. However, if you’re looking for a cheap option, opt for third-party insurance but be prepared to pay for the damages to your car in case of an accident.