Third Party Car Insurance
A Insurance Article Contributed by Deepak Cutting
Third Party Insurance of Your Car
Third party car insurance is mandatory. However, there is substantial scope for reduction of costs or the premium payable in case this type of insurance policy is chosen. It must be remembered that, should your car be comprehensively insured, there is no need for a separate third party insurance policy. Comprehensive car insurance includes third party liability also. Third party insurance only would be the preferred option for older models of cars.
For older cars the depreciation factor would substantially reduce the amount payable towards any claim, in case of a mishap. This, however, is not applicable to 'vintage' cars. Any car more than twenty five years old could qualify to be categorized as a 'vintage car' and its value will not depreciate on account of its age. In fact the opposite is true in this case.
What Value is Adequate Insurance for Your Car
The third party insurance provides risk cover in respect of the cost of treatment to the other individual(s) involved, compensation for pain and psychological injury to the other party and injury to the property of the other party, in case of an accident. No damages to the owner are to be considered here. The question of any risk cover in case of theft, fire damage or injury to the owner are not catered to in case of third party insurance cover.
It is wise to have adequate risk cover in respect of loss of life or expenses incurred for medical treatment of the other party. Such compensation can be huge and without any limit in certain cases. You would not like to have to pay for the cost of treatment of someone else because this could involve unlimited amounts. If a saving in premium payable must be effected, reducing the liability limit on claims payable in respect of damage to the property of the third party can be resorted to.
Payments compensating damage to property of any third party are not likely to exceed a reasonable limit.
How to Reduce the Cost of Third Party Car Insurance
Third party car insurance offers a lesser scope for bringing down the insurance premium, as compared to comprehensive insurance. For comprehensive insurance the restrictions to be imposed on use will substantially reduce the premium. Most of these conditions do not apply in case of third party insurance. However, they do reduce the amount payable towards insurance premium, albeit to a much lesser extent.
A no claim bonus is available in case of third party insurance cover also, for subsequent years. To arrive at the lowest rates for car insurance, it is advisable that you get quotes from at least a dozen different sources and then opt for the lowest, having due regard to the quality of insurance cover offered by each agency. Here again, the difference in quality of third party insurance cover offered by different insurance companies is not likely to be very great, in case of third party insurance.
