Understanding the Difference between Comprehensive Motor Insurance and Third-Party Motor Insurance

When it comes to insuring your vehicle, there are different types of motor insurance policies to choose from: Comprehensive Motor Insurance, Third Party Fire and Theft, and Third-Party Motor Insurance.

THIRD-PARTY MOTOR INSURANCE

It is a simple insurance product which covers the policy holder against legal liability to third parties in the event of death, bodily injury and property damage involving the insured vehicle.

THIRD-PARTY FIRE & THEFT

This is an insurance product that pays for damage to third party car and properties. It also covers you in the event of your Vehicle being stolen or destroyed by fire.

COMPREHENSIVE MOTOR INSURANCE

This is a comprehensive insurance product that pays for damages to your vehicle as well as third party damages for which you are liable. It also covers you in the event of your Vehicle being stolen or destroyed by fire.

These policies provide financial protection in the event of an accident or damage to your vehicle.

Comprehensive Motor Insurance

Comprehensive Motor Insurance is a comprehensive policy that provides extensive coverage for your vehicle. This policy covers damages to your vehicle, as well as damages or injuries you may cause to others. With comprehensive motor insurance, you are protected against:

- Accidental damage to your vehicle

- Theft or hijacking of your vehicle

- Fire damage to your vehicle

- Third Party Property Damage

- Third party bodily injury and death (Unlimited but reasonable)?

Comprehensive motor insurance also provides additional benefits such as:

- Towing Fee

- Medical expenses

- Flood Extension

- Strike, Riot &Civil Commotion Extension

THIRD-PARTY FIRE & THEFT

- Covers loss from fire damage to the insured vehicle?

- Covers theft of the insured vehicle?

- Third party bodily injury and death (Unlimited but reasonable)?

- Third party property damage

Third Party Motor Insurance

Third Party Motor Insurance, on the other hand, is a basic policy that only covers damages or injuries you may cause to others i.e. (Third party). This policy does not provide coverage for damages to your own vehicle. With third party motor insurance, you are only protected against:

- Damages caused to Third party vehicle

- Damages caused to another people's property

- Third party bodily injury and death (Unlimited but reasonable)?

Key differences

The key differences between comprehensive motor insurance and third-party motor insurance are:

- Level of coverage: Comprehensive motor insurance provides extensive coverage for your vehicle and third parties, while third party motor insurance only provides coverage for Third Parties.

- Premium cost: Comprehensive motor insurance premiums are generally higher than third party motor insurance premiums.

- Additional benefits: Comprehensive motor insurance provides additional benefits such as Medical expenses, Towing Fee and Flood extension which are not available with third party motor insurance.

In conclusion, Comprehensive motor insurance and Third-Party motor insurance are two different policies that provide different levels of coverage. Comprehensive motor insurance provides extensive coverage for your vehicle and third parties, while Third-Party insurance covers only the damages caused to the third party and their property or vehicle.

When choosing a motor insurance policy, it is essential to consider your financial situation, driving habits, and personal preferences to select the policy that best suits your needs.

Do you want to know more about Motor Insurance? Contact us today on https://coronation.ng/contact-us/