3. Difference Between Full Cover Insurance & Third Party Insurance
1. FULL COVERAGE INSURANCE :
Full coverage insurance is a more comprehensive type of insurance that not only covers third-party liability but also includes coverage for the policyholder's own vehicle. Here are some key features of full coverage insurance:
A. COVERAGE :
In addition to third-party liability coverage, full coverage insurance provides coverage for damages or loss to the policyholder's vehicle due to accidents, theft, vandalism, natural disasters, and other specified events. It may also include coverage for medical expenses related to injuries sustained by the policyholder.
B. COMPREHENSIVE AND COLLISION COVERAGE:
Full coverage insurance often includes two main components: comprehensive coverage and collision coverage. Comprehensive coverage protects against non-collision events, such as theft, vandalism, or weather damage. Collision coverage covers damages resulting from collisions with other vehicles or objects.C. BENEFICIARY:
Full coverage insurance provides benefits to both the policyholder (for vehicle repairs or replacement) and any affected third parties (for liability claims).
D. HIGHER PREMIUMS:
Due to the broader coverage offered, full coverage insurance generally has higher premiums than third-party insurance.
2. THIRD PARTY INSURANCE :
Third-party insurance, also known as liability insurance, is the minimum legal requirement in most jurisdictions. It covers the damages and injuries caused to a third party (someone other than the policyholder) by the policyholder's vehicle. Key points about third-party insurance include:
A. COVERAGE:
Third-party insurance primarily covers the liability of the policyholder towards third-party property damage, bodily injury, or death caused by their vehicle.
B. BENEFICIARY:
The insurance coverage benefits the affected third party (the victim) rather than the policyholder.
C. LIMITED COVERAGE:
Third-party insurance does not cover damages to the policyholder's own vehicle or injuries sustained by the policyholder in an accident. The policyholder is responsible for covering their own losses in such cases.
D. PREMIUMS:
The premiums for third-party insurance are typically lower than those for full coverage insurance due to the limited coverage provided.
It's important to note that the specific coverage, terms, and conditions may vary depending on the insurance policy, insurance provider, and jurisdiction. It's advisable to carefully review the policy documents and consult with insurance professionals to understand the exact coverage and limitations provided by each type of insurance before making a decision.
