In this article you will get useful information for used car insurance. It may be a life changing hack for you.If you are going to purchase a car it may be a new one or maybe a used car you should take car insurance to protect your car.
Three types of car insurance are there. One is first-party insurance, 2nd one is the second party and 3rd one is third party. First-party refers to the insured individual, second-party is the insurance provider, and the third party is the person towards whom damages are owed by the first party in an accident.
First party: The first party in the car insurance policy is the owner of the car or the person in whose name the policy is registered. This first party has to pay their car insurance premium to their insurance provider and can claim the benefits under the insurance. First-party insurance provides complete coverage against the damages to your vehicle. The plan includes coverage against fire, natural calamities, theft, or man-made disasters.
Second party: The second party refers to the car insurance company that protects your vehicle and compensates for the losses or damages to your car. It is the insurance provider with whom the first party has signed the insurance policy contract. Therefore, when an accident takes place, the second party is entitled to settle the claims filed by the first party, provided that the first party has ensured timely payments of premiums.
Third-party: A third party is a person or a vehicle owner who has been affected by the actions of the first party’s insured vehicle in any way. Third party motor insurance covers your legal and financial liabilities towards the third party in an accident caused by you. If the first party’s vehicle has caused damage to the third party’s vehicle or owner, then the insurance benefit is paid by the second party to the third party.
When filing a claim on your third-party insurance, you need to present your insurance policy copy, filled-up claim form, RC copy of the vehicle, driving license copy, and FIR.
What are the different types of car insurance in India?
A car owner has the option of choosing either between comprehensive car insurance or third-party car insurance:
First-party insurance or comprehensive insurance
A comprehensive car insurance policy protects the interests of the policyholder’s car. In case of any natural calamity, man-made disaster, or total loss of the vehicle (theft or complete damage), the first party can file a claim for the damages with the second party, who will settle the claim amount, after considering the extent of damages and verifying the information.
The comprehensive car insurance also covers third-party claims. Hence, if a third party is affected by the first party’s insured vehicle, which includes injuries, property damage or loss of life, then the second party will settle the claim on the first party’s behalf.
Moreover, the comprehensive insurance cover can be customized to take care of certain damages with the inclusion of add-ons selected by the policyholder.
Third-party insurance
Third-party car insurance covers only the damages incurred by a third-party person or vehicle. In case of bodily injuries, death, or damage to the third-party property or person, they are entitled to the insurance benefits of the first party. Therefore, the second party, or the insurance provider of the first party, pays the compensation on the first party’s behalf. The third-party car insurance price is less than the comprehensive insurance cover because of the lower extent of coverage.
As stated under the Motor Vehicle Act 1988, a person must get at least third-party online vehicle insurance. Having this insurance cover is a legal requirement, without which any car owner will have to pay a traffic fine or face legal consequences. Therefore, it is advisable to immediately get third-party car insurance online.
1.Which insurance is best: first-party or third-party?
This choice would depend on the type of coverage you prefer. But for optimal coverage and the safety of both the first and third parties, TATA AIG recommends the comprehensive car insurance package.
2. What is the difference between 1st party and 3rd party insurance?
In first-party insurance, the benefits are for the insured car and its owner as well as the third party if needed. Third-party insurance policies only take care of damages or injuries/death of third-party property or persons.
3. Is it worth getting third-party insurance?
Third-party insurance is mandatory by law if you want to drive your vehicle on the roads. One must have a third-party insurance cover.
4. What is 3rd party insurance?
Third-party insurance is the basic insurance cover that takes care only of third-party damages. The recipient of the claim is not the policyholder but another person or vehicle affected by the first party’s insured car.
The answer is yes, it is safe to buy or renew a car insurance online. If you buy it from an authentic site then you can surely purchase it without any fear.
You can check this site for Car Insurance.
