1st party vs 3rd party insurance: While buying vehicle insurance, many people get confused whether to buy 1st party insurance or 3rd party. Some people do not even know the meaning of these two insurances. In such a situation, we are telling you what is the difference between these two insurances and which insurance will be better.
Which is best vehicle insurance policy
Whether you drive a car or a bike, it is very important to have insurance for it. Insurance is not only necessary to protect your vehicle, but it also protects you from challans. Vehicle insurance can prove to be of great use in case of an accident or theft. While buying vehicle insurance, many people get confused whether to buy 1st party insurance or 3rd party. Some people do not even know the meaning of these two insurances. In such a situation, we are telling you what is the difference between these two insurances and which insurance will be better.
What is First, Second and Third Party insurance
In the language of insurance policy, the owner of the vehicle, or the person in whose name the insurance is taken, is called the first party. Vehicle insurance company is
called second party. Whereas in the event of an accident, the third party is called the person or the owner of the vehicle, who has been damaged by your vehicle.
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First Party Insurance New Update
This insurance is made for the protection of the policy holder’s vehicle. In case of any natural calamity, accident or vehicle theft, the vehicle owner can file a claim with the insurance company. In this, the insurance company also covers third-party claims. For example, if another person or their vehicle is damaged by your vehicle, then the company will settle the claim on your behalf.
Third-party insurance New Update
In this insurance, only the damages caused to the third party or third party vehicle are covered. In terms of cost, it is cheaper than first party insurance. By law, all vehicles are required to have at least third-party insurance.
First party insurance tends to be expensive in terms of which one is better to buy . But it gives protection to your vehicle in case of theft and accident. It depends on your budget which insurance you are taking. However, for optimum coverage and protection, both first and third party, you are advised to go for first party insurance.
