Difference Between Standalone Own-Damage Vs Third Party Car Insurance

Car insurance policies are important purchases for our vehicles. Your four-wheeler is protected from unexpected issues like accidents, thefts, etc. To ensure your four-wheeler stays protected during these events, you will have to pay the premium amount and renew the policy on time. Insurers like Tata AIG offer car insurance premium calculators to help customers plan their finances and purchase the most optimal policy. You can also utilize the calculator to compare the different policies available for you.

While the procedure to purchase a car insurance plan is quite easy, the different options available make the purchase a bit difficult. Most individuals are generally confused between purchasing a third-party car insurance plan and a standalone own-damage plan. It would be better if you learned about their differences before making the purchase. However, let’s look at them individually first.

What Are Third-Party Car Insurance Plans?

Third-party car insurance plans are insurance policies that protect you financially against any damages to third parties. This means, if your car were involved in any damages to a third party, the third-party insurance coverage would deal with the financial costs. In addition, you get third-party insurance cover for any damages to third-party properties, third-party medical issues, death, or any legal issues you face when you’ve harmed any third-party properties or individuals.

What Are Standalone Own-Damage Plans?

Own-damage is an adjustable motor insurance plan designed to protect you and your vehicle from any damage to the vehicle. An own-damage car insurance plan will help you deal with any damages to your four-wheeler. With own-damage coverage, you get financial support for dealing with the damage repair costs. The own-damage vehicle insurance will cover any damage to your vehicle due to an accident, your vehicle’s theft, any losses because of a fire, damages due to a natural disaster, etc. You can file a standalone car insurance claim to get adequate coverage for the damage repair costs. The standalone own-damage car insurance plan’s coverage is restricted to the car and isn’t extended to third parties.

What Is The Difference Between Own Damage And Third-Party?

Listed below are some of the factors highlighting differences between own damage vs. third-party insurance:

Own Damage Third-Party
Primary coverage offered An own damage cover offers coverage to the insured four-wheeler. A third-party car insurance plan offers coverage for any third-party liabilities.
Exclusions An own-damage plan does not cover any third-party liabilities. Third-party car insurance doesn’t cover its damage.
Compulsion An own damage cover is not a compulsory purchase. It is a legal mandate to own third-party car insurance if you’re a car owner.
Coverage sufficiency It is a legal compulsion to purchase third-party coverage; getting your damage will help you improve the coverage you get. Purchasing only third-party car insurance plans may lead to insufficient coverages. This is because your car will not be protected from any damages with this plan.
Coverage tenure The coverage tenure of an own damage insurance policy can vary between one or three years. However, individuals usually prefer purchasing short-term own damage covers since they get to adjust the coverage offered at renewals of car insurance. If you buy a new car, you have to purchase a third-party car insurance plan for three years as per the law. Otherwise, you can opt for an annual policy.
Adjustability With an own-damage cover, you get the flexibility to adjust the plan as per your requirements. You get to include the coverage you wish for your four-wheeler. With a third-party insurance plan, you do not get any flexibility to adjust the plan.
Cost With an own-damage car insurance plan, the cost of your car insurance policy will depend on the plan you choose. In addition, the cost of the insurance plan will depend on different factors like the add-ons you choose, the deductible amount, your car’s IDV, etc.


Insurance regulators set the cost of third-party insurance policies, and insurance companies do not play significant roles in this.

If you’re looking to purchase car insurance and the number of options available is making the process seem a bit overwhelming, you can follow a few tips to plan your purchase.

Tips You Should Follow To Plan Your Purchase Better

Following the pointers below will assist you in planning your car insurance purchase:

  1. You must begin the process by identifying your requirements. Once you have a clear understanding of your insurance requirements, purchasing the plan becomes easy.
  2. Before purchasing a plan, you must make a list of different car insurance plans that match your insurance requirement. Once you have made a list, you must compare them based on the coverage they offer and their suitability.
  3. It would be better if you learned about the insurance company’s reputation after reading customer reviews. Along with this, you must also check the insurer’s claim settlement ratio before going ahead with the purchase. A high claim settlement ratio will indicate a higher probability of a car insurance claim settlement.
  4. Use an insurance calculator to calculate car insurance premium before going ahead with the purchase. Most insurers like Tata AIG offer insurance premium calculators on their websites to help customers purchase a car online insurance.
  5. Rely on add-ons to improve the coverage of your policy. You must select a group of suitable add-ons for your insurance policy.


A third-party car insurance plan is designed to help third parties deal with any damages or injuries caused by your car. As per the law, every car owner must own a third-party coverage plan for their four-wheeler. Standalone own-damage car insurance plans are insurance policies that specifically cover our car from losses and damages. It includes losses and damages because of accidents, collisions, etc.

Both the policies have several differences like their cost, the coverage they offer, and their tenure. Therefore, it would be better to learn about the differences in detail before going ahead with the purchase. You can also keep in mind a few tips to purchase a suitable car insurance plan.

Comments are closed.