Given the lower level of coverage, a third-party car insurance policy is usually more affordable than comprehensive car insurance. But when choosing between the two, you should consider your needs as well as the costs involved.
As an example, imagine you got into an accident, and your car was badly damaged to the point you can’t drive it. You need to consider if not having a car, for even a few days after such an incident, is going to critically affect your life or business. If it would, you may want to consider comparing comprehensive car insurance policies, which is more likely to include cover for a hire car after an accident.
You may also want to think about how much you drive. If you don’t drive often and feel you’re unlikely to get into a serious accident, then you may decide that third-party insurance offers enough coverage for your needs.
Plus, you may not need comprehensive car insurance if you don’t plan to repair or replace your car after an accident. However, if your car is a high-end, classic or vintage model that you’ll want to repair or replace, a comprehensive policy can support your budget and give you peace of mind.
Finally, if you buy a car with the help of a car loan, the lender may require you to hold a comprehensive car insurance policy as a condition of the loan, to help reduce the lender’s risk in case the car is damaged or written off. Remember to compare car loans and consider the eligibility criteria before you make your purchase.