Some car owners opt to get third party insurance instead of comprehensive coverage in order to save money, but they aren’t aware of the many negative consequences of going with the cheaper plan..
Third Party Insurance Benefits
Third party insurance allows drivers to meet the requirements of the law regarding insurance. It’s the most basic kind of insurance that you can buy.
In rural areas, owning a car is essential. If there is no accessible public transportation available, there is no other way to get to work. That’s a problem, because cars can be expensive especially if maintenance, repairs, gas and other costs are taken into account. So, in order to save money, some people choose third party insurance over full coverage.
One of the biggest advantages to third party insurance is that you can avoid a big punishment if you get pulled over for any reason while driving. In Nigeria, the penalty for driving without insurance is massive. Expect to pay a fine of up to N250,000 and/or face a year in jail if you get caught driving without coverage. Third party insurance will give you just enough coverage to satisfy the law.
With third party insurance, you can drive with confidence knowing that you will be safe from lawsuits in the event of an accident. If you make a mistake while driving that causes somebody to try to sue you for material or medical damages, the insurance company will absorb the fees. On the other hand if you don’t have the minimum required level of insurance, you could face a mountain of fees, legal penalties and lawsuits if you happen to get into a wreck. Driving without insurance is stressful and dangerous, so put your mind at ease and purchase third party insurance if you plan on driving.
Third Party Insurance Downsides
Third party insurance won’t cover you after an accident, only the other person involved in the wreck. If you break your leg and ruin your car during an accident, for example, you’ll have to pay the medical costs and the price of buying a new car if you only have basic third party coverage.
Another problem with choosing to purchase third party insurance is that you miss out on the many benefits enjoyed by those who opt for full coverage. For example, if you get a flat tire while driving and you have full coverage, the insurance company will pay for a tow truck to come and get your car or replace your tire.
Also if your car gets stolen and you have full coverage, the insurance company will give you money to rent a car for a small period of time while you look for a new vehicle. If something happens to you car and you have full coverage, the insurance company will pay for you to buy a new car of equal or lesser value.