It is possible that you may have heard the term third party car insurance plan from time to time in the context of the insurance industry. It is another term for liability insurance. Its basic function is to make sure that you stay protected from lawsuits by others. It is rather fundamental coverage and it is the minimum insurance that you need in your state.
The different forms of these plans
When you are looking for such insurance for a car you would be able to get them in two major forms. At times you may see them grouped together as well.
In one type of policy, you would be protected against claims of physical injury. In another, you would be protected from claims of property damage. The coverage in these cases starts to be applicable when the insured driver causes physical and/or property damage to others. In this case, it would be you. However, if you are responsible it would be the liability coverage of the other person that would kick in.
This is the most economical route
Normally, these policies happen to be the cheapest of the lot. This is because they do not have all the clauses that you normally get with regular comprehensive insurance.
These policies are – as you may have understood by now – basic policies. They are only supposed to protect you from the different calamities that you may suffer during your journey as an insured driver. There is a good reason why these policies cost you less than the comprehensive ones. This is because the comprehensive policies not only cover your car but the other cars involved in the accident as well. They would also cover all property damage along with the medical expenses that may have happened because of injuries. These damages are ones that resulted because of the accident.
The normal third party car insurance plans do not provide any coverage to what happens to you or to your car in an accident. This is also why you should take steps to make sure that you stay adequately protected when it comes to car insurance. However, if you buy such a policy from a top service provider such as Royal Sundaram, which also offers zero depreciation policies, things could be quite different. There would also be some other insurers who would offer you quotes that would be combinations of different kinds of car insurance policies such as collision, liability, and comprehensive insurance.