Finance

What are the Benefits of Third-party Car Insurance?

As we grow up, we look forward to owning the car of our dreams one day. Once we begin working hard and saving up, we get to a point where we can turn our dreams into a reality. The feeling of purchasing our own car can be quite liberating and joyous for us. We strategically look through the different modifications and features that we can add to make the car feel comfortable.

However, to ensure your dream stays alive even after the purchase, you must get third-party car insurance.

What is Third-party Insurance?

As per the Motor Vehicles Act (MVA) of 1988, third-party insurance coverage is compulsory for any individual who owns or drives an automobile in India. The third-party insurance cover is a policy that will protect you against accidental liabilities, legal issues or damages to property. 

The cover will also protect you if a third-party was injured or passes away because of your vehicle. However, the third-party insurance cover does not include protection for you if you get injured or for your vehicle if it gets damaged. 

If you’re caught by the officials on the road without a valid third-party car insurance, you may be fined heavily. The third-party insurance is important to make sure that you are driving your car without any risks to third-parties in the country.

What is Covered Under a Third-party Insurance Plan?

A third-party insurance plan offers protection against the damages to a third-party by the vehicle that holds the insurance plan. The insurance for four-wheelers includes physical injuries, damages to the vehicle, damage to property, injuries or death. 

What is Not Covered Under a Third-party Insurance Plan?

Listed below are some instances where you will not get third-party insurance coverage:

  • If the accident occurred when the driver was intoxicated or driving under the influence of alcohol.
  • If the driver is below 18 or if he/she was driving the vehicle without a valid driving license.
  • If the accident was proved to be a deliberate event.
  • If the vehicle was used for illegal activities or for commercial reasons.
  • If the insured vehicle is stolen.
  • If the insured vehicle is damaged, as third-party insurance does not cover own-damages

How Does a 4-Wheeler 3rd Party Insurance Work?

If a policyholder meets with an accident, the insurer will offer financial protection to deal with the repair costs for dealing with the third-party property damage. It will reduce the financial burden on you during an accident. You must inform the insurance company about the accident as soon as possible. When you have filed a claim, the insurer will appoint a surveyor to analyse the damages and calculate the repair cost. Once the verification is finished, the insurer will settle the claim.

The third-party insurance can be quite good, as it can help us lower our financial liabilities. Along with this, there are several other benefits of third-party insurance as well.

Advantages of Third-party Car Insurance

  1. Provides legal coverage and financial help:Third party car insurance plan will cover an insured person’s legal liability in the event a third-party individual passes away, is rendered disabled or if any damage has been caused to a third party’s property. The legal and financial burden is taken care of in these scenarios. With third-party insurance, the direct beneficiary of the insurance coverage is the third party. The third-party insurance plan helps you deal with the financial liabilities that may arise out of an accident.
  2. Provides peace of mind: Third-party insurance plans can help you lower your stress when dealing with unfortunate events which can cause heavy financial problems to us. With the third-party plan, you can focus on dealing with the immediate requirements and dealing with the damages instead of worrying about the financial liabilities.
  3. Simple and quick method to purchase the plan: Third party car insurance plans are quite accessible and easy to purchase and renew. Many insurance companies in the country allow customers to purchase and renew the plan through their official websites. The process to get car online insurance is quite easy. You can directly visit your preferred insurer’s website and carry out the insurance purchase.
  4. Affordable: Purchasing third party insurance is quite easy and affordable for customers. Since it is a legal compulsion for car owners to have a third-party insurance for their vehicle, the cost of the insurance is quite low. Including the third-party insurance can help you protect third parties at an affordable cost.

Thus, getting a third-party insurance plan can be quite advantageous for you. However, if you wish to protect your own vehicle under the same plan, you can get a comprehensive insurance plan. A comprehensive insurance plan will include the third-party insurance benefits and protect you and your vehicle from unprecedented dangers. However, it is important that you research thoroughly and compare car insurance plans before purchasing.

Conclusion

Getting car insurance along with a third-party insurance can help you tremendously. It will protect you from legal fines and financial liabilities that may rise if your car was involved in any damages to third-parties. While it won’t help you cover your own car, it can be an effective way to ensure third-parties are protected from unpredictable events. If you wish to protect your own vehicle and third-parties, you can get a comprehensive insurance plan.

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