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In India, insurance providers offer two types of car insurance policies, namely, comprehensive and third-party.

  • Third-party car insurance covers third-party damages and is cheaper as compared to a comprehensive insurance plan.
  • However, a comprehensive plan has a wider coverage, so it has higher premium rates.

As such, several factors have to be taken into consideration when choosing between the two types of car insurance plans. Let us understand the key features between comprehensive and third-party car insurance plans to help you choose the most viable plan to suit your car insurance needs.

Comprehensive Vs Third Party Car Insurance

Comprehensive Insurance Third-party Insurance


Complete insurance coverage for the insured and his/her car. Includes third-party damages.

Coverage only for third-party damages.

Scope of coverage

Wider coverage as covers both the policyholder and third-party

Protects you from third-party liability

Bonus coverage

No claim bonus (NCB) available 

NCB not available




Price of Premium

Higher than third-party insurance as has wider coverage like rider benefit, cashless repairs, etc.

Cheaper than a comprehensive insurance plan. Price of premium pre-determined by IRDAI based on the car’s cubic capacity.


Available through different riders as per insurer requirements 

Not available

Key Takeaway:

A comprehensive car insurance plan is expensive as compared to third-party insurance. However, it offers a wider coverage and comes with no claim bonus.

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