The Difference Between Comprehensive and Third Party Car Insurance

Third party car insurance is often referred to as liability insurance. In the majority of states, it is required coverage. Comprehensive insurance helps protect the insured vehicle against weather and other non-collision damage.

Third Party Car Insurance

Third party insurance covers damage or injuries that the insured causes to a third party. It offers both property damage and bodily injury liability. The insured must be found at fault for third party claims to be honored. Third party insurance does not cover the cost of damage to the insured party's vehicle or injuries.

Comprehensive Insurance

Comprehensive insurance covers the cost of damage to the insured vehicle that is caused by something other than an accident or collision. Examples of coverage would be fire, theft, flood or animal damage. It does not cover damage costs to third party vehicles. Comprehensive insurance normally has a deductible associated with it.

State Requirements

In the majority of states, third party liability insurance is mandatory. Proof of insurance is generally required to register a vehicle. Comprehensive coverage, on the other hand, is not a required coverage and is often not recommended on older, low-value vehicles.

References

• Comprehensive Car Insurance Guide: What is Third Party Insurance
• Nationwide Insurance: Comprehensive Insurance