Differences between third-party and comprehensive insurance

September 15, 2021

A lot of time, money and energy goes into the decision of buying a new car. For some it is a mode of convenience, for some it is a dream-come-true and for some it is the beginning of new adventures.  Thus, one must take good care of it and choose the car insurance wisely. To avoid hiccups in the future, play it safe at the beginning of the ride. Always invest some time in giving a thought around your motor insurance. Some argue, why is it even needed for everyone? Always remember, any kind of insurance brings in financial safety net and lot of mental peace in case of unprecedented road events. Car insurance is as important as buying a car. How much and what kind of insurance you need, this can vary from individual to company. It is advisable to compare and contemplate around the best-suited insurance.

Here are seven things that you must remember to weigh out your options more wisely. 

1. The type of insurance that meets the obligatory requirement, fulfils the mandate of the UAE law but has restricted benefits is called as third-party insurance. It provides cover in case damages have been caused to a third-party vehicle by you. Comprehensive insurance, as the name suggests is more elaborate and dependable in case of all kinds of road mishaps. Comprehensive means extra protection from the unforeseen.

2. If you cause some damage to another vehicle accidentally, the cost of damages done to the vehicle will be covered by third-party insurance but your own vehicle damages will be not be covered. Comprehensive will take care of all kinds of injuries and damages done to you and your car.

3. Until the full loans are paid, comprehensive insurance is always advisable. In fact, the finance companies also demand for it. Third-party may not be of much help.

4. One is more affordable and pocket friendly while other comes at a higher value. One must know what you paying for, so that you can claim for it in need. In case of comprehensive insurance coverage, a lot more benefits can be added. If you have off-roading activities to do, you can also make it a part of your coverage. With third-party, only a few more benefits can be supplemented.

5. Third-party will not be of much use if the accident/mishap is your fault. But at the same time, comprehensive will let you claim even in those situations where you were more at fault during the car mishap or accident on road. Third-party insurance does not cater to customisations but comprehensive insurance does. 

6. Once the car becomes old or reaches a certain stage, then comprehensive may not be a good idea. Also, some cars and young drivers may or may not qualify for comprehensive insurance. One must be aware of it to take it up with your insurer.

7. Last but not the least, here are some examples to help you understand better.  You were trying to park in a shopping mall and you accidentally hit another car. Both the cars are damaged. Third-party will cover the damages done to the other car but not your own car damages. Comprehensive car insurance will take care of both.

In another case, you parked your car in the shopping mall and when you returned after an hour, you found some scratches on your vehicle with no clues who has given them. In this case, comprehensive car insurance will take care of it. Third-party insurance will not be of any help.

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