A third party car insurance provides protection coverage to the third-party involved in an accident. The risk coverage of this policy covers the damages done to the third-party’s property and life. Here are some options you can select from.
1. Long term
Long term includes a policy of three years and own damages for three years. This policy offers risk coverage for the third-party damages and the policyholder for five or three years. You need not buy both together. Also, switching from one insurance provider to another is not possible.
2. Bundle package
Bundle packages include third party for three years and own damages for one year. You can opt for the stable premium throughout the term if you want to. The interest rate charged on vehicle ranges from 11% to 15 % per year. Some insurance providers may also offer credit range from 6% to 8%. The additional upfront fee for three years can increase the premium by 10%.
3. Single policy
Simple policy includes a car insurance policy without own damages plan for three years. You might save on premium with such a policy, but your vehicle and damage to your life will not be covered.
In third party car insurance, you (policy-holder) is the first party, your insurer is the second party, and the person with whom an accident occurs is the third party.
Read Also: Who Should Avail a Third-Party Car Insurance
