When it comes to vehicle insurance in India, third-party insurance is typically the first type of policy that drivers encounter. It’s not only mandatory but also the most basic form of coverage available. Yet, despite its importance, it remains widely misunderstood. These misconceptions lead many to either skip insurance altogether or choose a plan that is not suited to their needs.
5 Myths About Third-Party Insurance
Here’s a closer look at five of the most common myths surrounding third-party insurance, along with facts to help you make better, more informed decisions.
Myth 1: Third-Party Insurance Offers No Real Value
A common myth is that third-party insurance has little use because it doesn’t protect the insured’s own vehicle. But this overlooks its actual purpose. Third-party insurance offers financial protection if your vehicle causes injury, death, or property damage to someone else. These liabilities can involve legal expenses and compensation that run into lakhs of rupees.
Without this coverage, you’d be personally responsible for all third-party claims. So while it may not repair your own vehicle, it’s a vital safeguard for your finances and legal standing.
Myth 2: It Covers All Types of Damages
Another common misconception is that third party insurance also covers damage to your own vehicle. That’s not the case. It only applies to third-party liabilities. If your car is damaged in an accident where you’re at fault, this policy won’t pay for your repairs.
This misunderstanding often leads to disappointment during claims. If you’re looking for protection that includes your own car, a comprehensive plan is a better choice. Understanding this difference helps set the right expectations when purchasing insurance.
Myth 3: It’s Only Available Through Agents
Many people still think that buying insurance requires visits to a branch or assistance from an agent. This is outdated. Today, you can easily buy or renew car insurance online. Most insurers offer dedicated portals that allow you to enter details, compare features, and complete payment entirely online.
Not only is this method more convenient, but it also gives you more control and clarity over what you’re signing up for. You can review terms and inclusions at your own pace, and receive your policy documents instantly. Online platforms also offer helpful tools like renewal alerts, claim tracking, and premium calculators, making insurance management simpler.
Myth 4: It’s Always the Most Cost-Effective Option
While third-party insurance generally costs less than comprehensive plans, that doesn’t automatically make it the most cost-effective solution in every case. Premiums are regulated by the Insurance Regulatory and Development Authority of India (IRDAI) and depend on your vehicle’s engine capacity.
For older or less-used vehicles, this basic cover might offer sufficient value. But if you drive frequently or own a new car, the absence of own damage cover can lead to large out-of-pocket expenses. For such vehicles, investing in a comprehensive plan could offer better long-term savings and protection.
So it’s not just about paying a lower premium. It’s about ensuring your financial safety when something goes wrong.
Myth 5: Once Purchased, You Don’t Need to Revisit It
Some assume that third-party insurance is a one-time requirement. This can be a costly mistake. These policies typically last for one year, and driving without a valid insurance plan is not only risky. It’s illegal. If your policy lapses, you may be penalised and left without financial protection.
Renewing car insurance online is a simple and fast process. Insurers often send timely reminders, and you can renew in just a few clicks. By maintaining active insurance, you stay legally compliant and protected against third-party claims throughout the year.
Conclusion
Third-party insurance is not just a legal formality. It’s a financial shield that protects you from unexpected liabilities on the road. Believing in myths can result in poor decisions that may cost you dearly in case of an accident. Understanding what third-party insurance covers (and what it doesn’t) can help you choose the right protection for your vehicle and your peace of mind.
Whether you’re buying insurance for the first time or considering a change, clarity on these common myths will ensure that your next insurance choice is informed, practical, and aligned with your actual needs.
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Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.
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