If you’re new to the car insurance market in Bahrain, one of the first questions you’d ask is – What’s the difference between comprehensive and third party insurance? In fact, not just new car owners, many seasoned ones don’t understand the concept behind these two types of car insurance policies either.
Knowing how both comprehensive and third party car insurance work, is the first step in helping you decide which option is right for you.
The Souqalmal.com explains the difference between the two…
Comprehensive insurance
Comprehensive car insurance, as the name suggests, provides a comprehensive cover to car owners. To start with, this type of insurance covers third party liability i.e., protects the insured against legal liability towards a third party. But that isn’t all. It also covers the insured vehicle against accidental damage, loss due to theft, and other damages. Additionally, it also covers the insured driver and passengers in the car by offering compensation in case they suffer accidental bodily injury, along with paying for medical expenses related to such an injury.
This type of holistic car insurance covers a wide range of benefits. Apart from accidental damage, your coverage may include damage to the insured vehicle due to fire, theft, vandalism, natural perils, riots and strikes. The driver is also covered against personal injury sustained while driving, and any emergency medical expenses arising as a result of that are covered too. Apart from standard coverage, car owners can also choose and pay for optional benefits like off-road cover, agency repair, GCC cover, personal accident cover etc. Please note that while some policies may offer these features as part of standard coverage, others may need you to opt in separately.
What does it exclude?
Comprehensive polices come with multiple benefits, but these benefits are subject to multiple exclusions and limitations too. Standard exclusions include losses due to general wear and tear, electrical or mechanical malfunctions, breakdowns etc. Damage to car tires is also excluded from coverage. Unless otherwise specified, damage to / or loss of personal belongings within the car is usually excluded by most insurers too.
Not all comprehensive car insurance policies are created equal. The policy’s overall benefits, specific coverage under different categories, add-on features selected by the policyholder – All play a role in determining your final insurance premium. Many insurers even offer different grades of comprehensive cover at varying price points.
Souqalmal.com recommends that you carefully review the policy fine print before committing.
Third party insurance
This is a far more stripped down, basic form of motor insurance available to car owners in Bahrain. Third party car insurance, as the name suggests, protects you against your legal liability towards a third party. Essentially, it protects you financially in case your car results in the death/bodily injury of a third party individual, as well as damage caused to a third party vehicle or property.
It is important to mention here – This car insurance coverage is mandatory by law in Bahrain.
Considering the limited scope and coverage offered under third party insurance, this type of policy is also significantly cheaper than its comprehensive counterpart.
It is also a good idea to check if the insurance company you’re applying to covers related expenses like court fees and legal defense fees.
What does it exclude?
If you’re opting for third party insurance for your car, it is important to understand that you will receive no compensation for damages sustained by your car. Neither you (the one driving the car) nor your car’s passengers will be covered financially against accidental death or bodily injury under this basic car insurance policy.
Eventually, knowing how both comprehensive and third party car insurance work, is the first step in helping you decide which option is right for you.
Comprehensive or Third party cover – Which one should you choose?
Besides your budget, there are a number of factors that help you decide which car insurance variant is right for you. For example, if you have a brand new car it would make sense to opt for a comprehensive cover to avoid paying through the nose for any damages to the car. Alternatively, if you have a much older car that doesn’t cost much to repair, you could go for a third party policy alone.
You can simply visit Souqalmal.com to compare multiple quotes from leading car insurance providers in Bahrain. Not only can you pick a policy that fits your budget, but also choose between a range of optional features to find a car insurance plan that truly meets all your requirements.