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Third Party and Comprehensive Insurance

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									                       Third Party and Comprehensive Insurance

Third party offers a measure of coverage to policyholders, including protection against
fire and theft. The law requires we at least have third-party coverage with indemnity to
protect us against accidents that occurred on shared roads. Under the law if you cause an
accident you will pay for the damage, injuries, medical treatment, legal, and other costs
out of your pocket. Third Party Coverage is a protection then “against other people‟s
claims against you.”

If you have third-party insurance with “fire and theft” coverage then this will offer you
protection in the event a fire or theft occurs. If you car catches fire, it is often a total loss,
and thus the insurance company will „write-off‟ the car and offer you disbursement to pay
for a car of equal value. Thus, if you have a Security System integrated into your motor
vehicle, this will reduce the costs of premiums, since if your car is stolen, the thief may
be caught later, but no one can tell what the damage of your car will be. Thus, insurance
companies enjoy providing coverage to those with security systems integrated into their
car. The security system will provide a measure of protection, but unfortunately, many
criminals have the ability to master most technical devices, therefore, the system will not
protect you entirely. Many insurance companies charge excess fees when offering
insurance coverage. The fees are the worth of your claims portion. In other words, if you
are in an accident and the company has to pay for the damage of the third party they may
charge you a portion of the costs. A few insurance companies may dismiss the excess
fees if the policyholder has “put forth all effort to halt or stop the fire or theft from
occurring.”

The companies may also apply excess fees to your policy in an attempt to „reduce your”
premiums, at the same time dropping the risks the insurance company may have in the
event a fire or theft occurs. Of course, the more claims you file when covered under
insurance the higher your premiums will be.

 Comprehensive insurance then is a full coverage policy that will protect policyholders
against fire, theft, personal injury, accidents, and so forth. Comprehensive insurance will
cover your automobile and any damages, injuries, etc, fully in the event loss or damage
occurs.

Comprehensive insurance will not cover you on all claims. Therefore, read the
information provided by the insurance company to learn what exclusions if any exist. The
exclusions is what the insurance policy will not payout. Comprehensive indemnity will
cover you if the other party driving has caused damage to your vehicle. The third-party
claims will not cover damage to windshields sometimes; however, the comprehensive
coverage will recover the windshield in the event you suffer loss as a result of fire, theft,
or accident. Since the windshields are considered different types of „excess charge‟, thus
the insurance companies often handle the claims differently. This is because the latent
smash up is ‟limited to the replacement cost of the” complete windshield.
The greater part of car insurance companies will often prohibit coverage on mechanical
and electrical matters. Wear and tear of your motor vehicle is also prohibited on car
insurance. However comprehensive coverage will often cover “loss of use” whereas if
you are restricted from the use of you vehicle, they offer rental coverage. This means you
can rent a car until your car is repaired. During the take out of your policy, you are
expected to pay upfront fees, including excess, portion of premiums, coverage fees and so
forth before you are legally covered.


As you can see third party coverage offers less coverage than the comprehensive plans. If
you want to protect your self entirely against problems then it pays to get comprehensive
coverage. However, if you have an old beater then it is not worth fully covering the
vehicle, thus third party liability coverage is optional. Finally, you must have insurance,
since if you do not you are facing legal penalties. Do not drive your vehicle until the car
is covered by an active policy.

								
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