Difference Between 1st Party and 3rd Party Car Insurance?

There are some very basic difference between Comprehensive and 3rd Party Insurance. They are:

1. Cover: There is a major difference in the list of covers. In a third-party plan, you only get compensated for damages to a toy vehicle/property and bodily damages to a third party. You also get legal compensation if you are taken to court by a third party following an accident. In a first-party plan, you get all the covers included in a third-party plan. Additionally, you get coverage for damages to your own car as well. Also, you get compensated if your car is damaged in a natural calamity, riot, etc or if it is stolen.

2. Price: A third-party car plan is cheaper than a first-party car plan. The covers are limited in the former hence the price is lower.

3. Flexibility: You cannot customize a 3rd party car insurance plan in any way. The coverage is fixed. A comprehensive plan, however, is more flexible and can be customized with riders.

4. Compulsion: It is legally compulsory for every vehicle owner to have a third-party vehicle insurance cover in India. There is no such compulsion to get a 1st party car insurance plan and the coverage is completely optional.