Difference Between Third Party Insurance and Comprehensive Insurance
Those who own cars or any other automobiles usually go for two types of insurance namely- third party insurance and comprehensive insurance to insure their car against any mishap and theft. Whether you consider your car an asset or a utility, insurance is a must. To understand which car insurance is best for you and in favor of the well being of your car, let’s dig deeper into the differences between the two.
In the insurance jargon terminology-first party is an individual or a business getting insurance and second party is the insurance company whereas third party is the person or company that claims the damages occurred to the car after suffering the losses. Third party insurance is only valid for automobiles only and insurance party won’t cover as such any kind of insurance but only for the claims of loss of property or life made by third party.
If you are really careful about your car, you should go with comprehensive insurance. It is termed as full third party coverage. The losses or damages happened to car is covered. It’s all inclusive and covers all the losses except the damages suffered from clashes and collisions with other vehicles. Losses like theft, vandalism, fire, hitting animals, natural disasters such as flood and lightening are covered.