Comprehensive Third Party: On the differences between comprehensive and third party insurance'

April 13, 2021   

Our lives are more precious than anything else, and in order to protect them as much as possible, we tend to have quite a few diverse insurance products, such as health insurance, home and property insurance, insurance for art products, and even those dedicated to our unique talents. What all of these have in common is risk management, or in other words, the higher the risk of losing one or another asset, or alternatively, the higher the value or amount of compensation requested for it, the higher the insurance price is expected to be, and in some cases even reach significant amounts. While a private vehicle is now among the most important and expensive assets we own, we must also pay insurance for it and for everything related to it. Regarding the various risks and opportunities, this is probably one of the most important and desirable things to pay for. However, here too, we are offered two main insurance tracks. So, to put things in order for you and to explain in essence What is the difference between comprehensive and third-party insurance?'. Here is a short guide with everything you need to know. Must read First, every vehicle in Israel is required to have compulsory insurance. This basic insurance is almost identical among all the different insurance companies and its amount is determined by the type of vehicle, engine capacity, its pollution level and the year. Behind compulsory insurance is the idea of ​​covering bodily and mental injuries in road accidents, as well as property that is not privately or company-owned. For that matter, if a vehicle hits a traffic light and needs to be repaired, the state will not sue the offending driver for the damage. Property aside, physical injuries and loss of life have no financial price, and therefore, in addition to careful and responsible driving, make sure you have a valid compulsory insurance policy. Third party insurance' This is where, as we mentioned, the additional insurance tracks come in. It is worth noting that although they are not required by law, purchasing one of them is not just a recommendation, if only for the small chance that you will be involved in an accident in which you caused damage to another party - and will be required to pay a few dozen (or even hundreds) shekels of the amount of insurance you purchase. If we are talking about third-party insurance, which, as the name suggests, deals with compensation and indemnification for property damage caused by a third party. This means that if, God forbid, you were involved in an accident and the blame fell on you - you will be forced to pay for the damage caused to a vehicle or property owned by another person or company. The procedure is that in this case, the company with which the injured party is insured is expected to sue the one with which you are insured, and the amount of compensation will be transferred to the claimant according to an agreement and without any involvement on your part. It is likely that your insurance policy has a deductible clause, according to which, due to the damage caused, you will be required to pay a fixed amount in advance, which has nothing to do with the amount of damage caused to the claimant. Third party insurance also covers legal costs, should you be sued personally, as well as towing and storage expenses for the damaged vehicle. What it does not cover is any damage or loss caused to you or your vehicle – which leads us to discuss insurance next. All inclusive Comprehensive insurance is the one that should and can provide a solution and compensation for any damage caused by an accident or safety incident in a vehicle. It includes all the sections and subsections that third-party insurance has to offer, but also covers damage caused to your vehicle, even in the event that you are responsible for causing the accident. While the levels of damage are also divided into different types, the level of coverage is also adjusted: coverage for shattered windshields, broken mirrors, sheet metal damage in milder cases and, of course, for serious damage such as that caused by an accident, total loss of the vehicle, Kerry Totalos Or its complete shutdown and even coverage in the event of theft of the vehicle – in fact, comprehensive insurance covers any damage to the vehicle except for natural wear and tear. Furthermore, comprehensive insurance comes with a significantly higher price tag than third-party insurance, and the higher the value of the vehicle, the higher the price of the policy is expected to be. It is important to note that even in comprehensive insurance, there is usually a deductible and that if you activate the policy due to an accident or theft – its price will increase significantly the following year, and if twice or more – this will indicate that you are a less profitable driver for the insurance company and a financial risk that is not recommended to be taken. Keep in mind that the vast majority of insurance companies would prefer to give up on you and not offer you comprehensive insurance at all. So which one is more suitable for you? The consideration here is simple and consists of two main parts: If you own an expensive vehicle that is highly maintained, in high demand, and has a higher potential for theft - comprehensive insurance will give you the appropriate answer. If your vehicle is relatively simple and its spare parts are cheap, third-party insurance may be sufficient in this case. The really important parameter is what type of driver you are or who drives your vehicle. If you are that careful and responsible and the price difference is significant - go for third-party. If, on the other hand, you doubt your driving skills or you share the vehicle with a young driver - comprehensive is the right one for you, and it will also give you peace of mind, in addition to covering the damages. Have a safe and pleasant trip!