1st party vs 3rd party Insurance: Often you must have heard terms like 1st party and 3rd party while buying insurance. Most of the people do not know the difference between them. Let us know what is the meaning of these two insurances.
Best Car and Bike insurance: Whether it is a car or a bike, vehicle insurance is very important. Not only does your vehicle get protection through insurance, but if it is not there, your challan can also be deducted. In addition, insurance can protect you from financial loss in case of a vehicle accident or theft. Often you must have heard terms like 1st party and 3rd party while buying insurance. Most of the people do not know the difference between them. Let us know what is the meaning of these two insurances.
What is 1st, 2nd and 3rd party
Actually, the vehicle owner is considered as the first party in the insurance policy. Insurance is taken in the name of this. The insurance company is called the second party and the person who gets damaged in the event of an accident is called the third party.
What is First Party Insurance?
First party insurance is costlier than third party insurance, although the protection of the vehicle is available in it. In case of any kind of disaster, accident or vehicle theft, the vehicle owner gets the amount of the vehicle. The special thing is that third-party insurance is already included in it.
Third-party insurance
This insurance is cheap, but only covers the damage caused to the third party. That is, the damage caused to you or your vehicle is not covered. All vehicles are required by law to have at least third-party insurance. It depends on you which insurance you would like to take. In our advice, first party insurance would be better for coverage and protection.
