There are two types of car insurance plans offered in India. They are Comprehensive car insurance policy and Third-party car insurance policy. The main difference between third-party and comprehensive insurance is the kind of coverage it offers. Comprehensive insurance provides extensive coverage and offers more services, whereas Third-party insurance fails to cover your own vehicle against an accident.

But which one to choose? And on what basis? Here is a brief comparison between a comprehensive and a third party car insurance cover for you to choose from. 


Comprehensive insurance cover

Third party liability cover


A comprehensive insurance policy is an extensive car insurance policy that covers the insured person against both, third party liabilities and own damages.

A Third party liability cover is the most basic car insurance plan that covers only damages and losses caused to any third-party person, vehicle or person.


Premium in this cover is higher depending upon the factors such as the city, type of car, tops-ups, etc.

Premium in this policy is predetermined by IRDAI and is cheaper compared to comprehensive cover.


A comprehensive plan provides extensive coverage as it not only protects you against damage and losses caused to any third-party but also covers damages and losses to you and your own car. 

Whereas a third party cover provides coverage for only third-party damages and losses such as if due to an accident or collision, you hurt a third-party person, his/her vehicle or a third-party property. Additionally, it also includes a personal accident cover to protect you from personal injuries or death.


Customization is available by adding specific add-ons and covers such as the zero-depreciation cover, Return to Invoice, engine and gearbox protection, Breakdown Assistance, etc

No customizations are possible under third party car insurance plans.


It protects you against both damages to your own car and third-party damages as well. 

It protects you in case you accidentally hurt somebody on the road, or damage one’s vehicle or property. 


It is a little bit more expensive than a third-party insurance cover.

It doesn’t cover for damages to your own car.

Which one to choose?

Although slightly more expensive, this plan would give you complete coverage, proving to be more beneficial. plus, even if you don’t make any claims in a year, you can benefit from a No Claim Bonus discount during renewals.

If you are using a very old car, or you rarely drive then maybe a basic third-party insurance would be sufficient for you.