How to Convert from Third Party to Comprehensive Car Insurance Policy?

Car insurance is a must-have requirement for every vehicle owner, but every policy is not equal in terms of coverage. If a car owner is holding a third-party insurance policy and wants to be able to have much better coverage for the vehicle, they must be shifting to a comprehensive car insurance plan, which can be a good idea. Here in this blog, every major and minor detail related to how one can convert third-party insurance into comprehensive insurance, benefits from switching, and everything a car owner will need to observe while switching is discussed in detail.

Difference Between Third-Party And Comprehensive Car Insurance Policy

Before taking your four-wheeler on Indian roads, it is necessary to get it insured with a valid insurance policy bought from a legitimate insurance provider. Check the below section in order to understand which policy would be the best for you. 

• Third-Party Insurance Cover:

Under this type of insurance policy, the policyholder gets financial assistance in case he  causes an accident, damage or injury to a third party person or property. It is mandatory by law to buy a third-party insurance policy to travel on Indian roads. Moreover, it also offers legal protection to shield you from any harm that your car might cause to a third party or another vehicle. Any injuries, disabilities, deaths, or damages to vehicles or property caused to another person, such as pedestrians, other automobile occupants, passengers, or bystanders, are covered under the third-party car insurance policy.

However, third-party insurance is insufficient because any costs associated with damages caused to the policyholder’s car are not covered.

• Comprehensive Car Insurance Policy:

This insurance policy is designed to cater to all your requirements and safeguard you against losses in the best possible way. Unlike third-party liability policy, in this plan, you will get total protection. In simple terms, a comprehensive insurance policy is the one that provides coverage for both own damage and third-party losses. 

Reasons For Switching From Third Party To Comprehensive Car Insurance Plan

If an individual is still in a dilemma on whether to take the leap, then here are some strong reasons why comprehensive coverage is better than third-party insurance:

• More Coverage: Comprehensive insurance covers third-party liabilities as well as any damage the vehicle might receive from accidents, theft, fire, natural disasters, and even man-made disasters such as riots.
• Financial Protection: It protects from costly repairs and damages to the vehicle as well, thus providing ultimate peace of mind to the car owner.
• Add-On Benefits: Comprehensive policies do have optional add-ons, including zero depreciation cover, engine protection, and personal accident cover, among others, thus making it more personalized protection.
• Compliance With Lenders: In case the car is on loan, most lenders require comprehensive insurance in order to protect their financial interest in the vehicle.
• Better Resale Value: Cars that are covered under comprehensive insurance tend to fetch a better resale value as the seller can assure the buyer that the car has been regularly serviced. 

Steps To Transfer Your Third Party Car Insurance Policy To Comprehensive Plan

Changing from third-party to comprehensive car insurance is an easy and compatible process. Here's how one can do it step by step:

Step 1. Research and Compare Plans

Transfer third-party car insurance plans into comprehensive by researching different comprehensive plans. Compare such policies offered by one insurance company to another. Compare both as far as coverage features and premiums that the other offers are concerned. Apart from these, on-road assistance, no claim bonus, and many such benefits may or may not be available with one as compared to other preferences.

Step 2. Contact Insurance Provider

Contact us at InsuranceDekho to get your existing third-party insurance policy converted into a comprehensive one. Our insurance advisors will guide you with respect to the best available policy and whether you should convert within the same insurer or choose someone else in the market.

Step 3. Documents Required

Collect documents like the car's RC, a copy of the third-party policy that exists, and ID proof to get the conversion process initiated.

Step 4. Vehicle Inspection

In some situations, an actual checkup of the car may be necessary for the insurance company to consider covering the comprehensive policy. In this way, the insurer will have an opportunity to evaluate the car's present condition.

Step 5. Pay The Differential Premium

Third-party car insurance covers only third-party liability. Comprehensive coverage provides wider protection than third-party, hence it would be costly. The owner would also have to pay an extra premium for the new policy (if applicable). Once paid, the coverage will be activated.

Things You Should Check Before Switching To Comprehensive Car Insurance Policy

Before changing, here are some things a car owner needs to contemplate.

• Premium For The Policy: Be aware of the premium difference for both third-party and comprehensive car insurance policies. Is this additional coverage worth it? Is the price too high?
• Coverage Information: Review what is covered under the comprehensive plan. It should cover own damage, third-party liability, and other additional benefits like natural calamity and theft.
• No-Claim Bonus (NCB): Check if the current third-party policy gives the facility to carry forward the NCB discount to upgrade to a comprehensive policy. That may lower the premium.
• Deductibles and IDV: One needs to be aware of the deductibles as well as the IDV (Insured Declared Value) of the vehicle. The lesser the deductible, the lesser the pocket expenditure incurred at the time of claims. Higher IDV means better compensation in a total loss scenario.
• Add-on Covers: There are various add-ons that one can opt for, including zero depreciation, engine cover, and roadside assistance. It all depends upon the habits and requirements of the driver.

Conclusion

The shift from third-party to comprehensive car insurance ensures total protection both for the owner and the vehicle. Providing greater coverage, financial security, and other benefits above the legal requirement of comprehensive car insurance offers peace of mind in unpredictable situations. This shift may offer the car owner relaxation from incidents like accidents, theft, or natural disasters. Always compare policies, identify needs, and then pick one that offers the best long-term security and savings.

FAQs

Q1. At what point of time can one change third-party insurance to comprehensive insurance?

Ans. A car owner can always change the third-party policy to a comprehensive one at any point in the policy tenure.

Q2. Does comprehensive automobile car insurance ensure that a car does not get stolen?

Ans. Comprehensive automobile car insurance covers theft of the car, other than damages from natural calamities, fire damages, and vandalism damages as well.

Q3. Will an owner lose its No-Claim Bonus if they shift to a comprehensive policy?

Ans. No, one can transfer the NCB with the comprehensive plan, as long as it's within the same insurer or eligible for transfer between insurers.

Q4. Does a car owner need to have their car inspected before getting a comprehensive policy?

Ans. Sometimes, issuing a comprehensive policy could involve a check on the car, especially if the car is a bit older or while changing the insurance policy.

Q5. What if I renew my comprehensive policy after the date?

Ans. If you have missed the renewal date, you will lose many benefits, including the no-claim bonus. Renew as soon as possible to retain all your benefits.

Also Read: 

Tips To Compare And Buy The Best Car Insurance Online

Tips To Lower Premium For Car Insurance Policy