Why insurance against a Third Party is Necessary?

Why insurance against a Third Party is Necessary?
My personal view on driving and car accidents are a little skewed compared to the way people see them. Once a car accident occurs, and there is no loss of life, there shouldn’t be a need for long talks over who is right or otherwise. One of my many questions when I witness or hear of a car accident, the human in me felicitates for some seconds and then I inquire if the individual has an active insurance cover. 

While comprehensive car insurance is one of those beautiful things that occurred after the invention of sliced bread, third-party insurance is compulsory for every car purchase, and a requirement while car papers are created. 

In today’s read, I shall be sharing with you why insurance against the third party is necessary, the disadvantages, the difference between the regular third party and limited third party insurance, likewise what happens if one only has third-party insurance. 

Why insurance against the third party is necessary. 
Third-party insurance is necessary since it is required by law for all cars on the road to carry one. It is the least form of insurance that validates one’s car license and registration. Furthermore, third-party insurance protects you financially against any third-party damage, either as loss of property, demise, or any form of physical injury. 

While a third party may not protect the policyholder in case of accidents, it would nevertheless secure the third party from any physical damage to the car, likewise, the occupants where necessary. 

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What are the disadvantages of third-party insurance? 
1. In the case of a car accident, third-party insurance covers only a third party as the name implies, but leaves the policyholder without any security or compensation. 
2. It is the least form of car insurance. 
3. In the case of theft of the car, there is no protection or recovery process in place for the car owner as against the comprehensive plan. 

What is the difference between regular third party and comprehensive insurance? 
1. The third-party insurance ensures that in a case of car accidents, the third party gets covered for repairs and bodily injuries as the case may be. Comprehensive insurance on the other hand covers both parties depending on the quote in your policy. 
2. In comprehensive insurance, premiums paid annually are a bit pricey, as they are valued between 3-3.5% of the car value at the time compared to the third-party which is way affordable. 
3. In case of card loss, theft, or colossal damaged beyond repairs, comprehensive insurance would ensure the policyholder gets compensated duly, provided he/she has been committed with the premiums, likewise, the quote of policy the user had selected while completing the form earlier. Third-party insurance has no covering for this, as only the third party is considered all the way. 

What happens if you only have third-party insurance? 
So that we have a clear understanding of this, here is how the third-party insurance process works when an accident occurs. Firstly, the first party in a third-party motor coverage is you, the car owner, the second is the insurance provider, and the third party is everyone else out there on the road. 

Third-party car insurance implies that if you damage someone else's vehicle, the insurance will reimburse the owner, or, more crucially, if you harm someone else with your vehicle, the insurance will reimburse you. Third-party liability coverage is included in your standard auto insurance policy and protects you from claims brought against you by other drivers following a collision. 

In other words, you cannot claim the automobile you are driving under third-party insurance, regardless of it is considered a brand-new car or you just had a paint job done. perks as such would require a comprehensive insurance policy that covers both yourself, your car, the third party and every other thing in between... provided you have ticked the right quotes in your policy while completing the forms and your premiums are up to date. 

In conclusion, third-party insurance may seem affordable and considered valid for roadworthiness, however, its measure of security is limited to the other man or woman and their car, but not you. I’ll suggest you get yourself comprehensive car insurance unless the subject car is barely driven or considered old. 
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