Third Party Car Insurance is the most basic and legally required car insurance in India. It covers injury, death, or property damage caused to another person due to your car. It does not cover damage to your own vehicle. Premiums are fixed by the regulator and depend on engine capacity. This policy helps you stay road-legal and protects you from large legal and compensation costs.
Driving is a mix of habit and chance. Most days follow a rhythm. Start the engine, wait at the signal, watch the traffic flow. Then there are days when a small moment shifts everything. A scraped bumper in slow traffic. A cyclist losing balance near a turn. Who takes care of the aftermath when someone else is affected?
Third party car insurance exists for those moments. It steps in when your car causes damage or injury to another person. Quiet support, steady and practical. On roads, everyone moves with their own purpose, yet one misstep can ripple outward. What happens when that ripple lands on someone else?
Many people see this insurance as a rule to follow, nothing more. But it also reflects accountability. It says you are ready to handle the impact of your actions, even when they come uninvited. Does that sense of responsibility change how the drive feels? Does it make everyday travel feel more grounded?
As the most basic and legally required cover, third party insurance sets the foundation for safer driving. Curious about what it actually covers and why it matters more than it seems? Let’s explore further in the article below.
The insurers mentioned are arranged in order of lowest to highest premium offered by all the insurer partners of SMC Insurance for a Honda Brio (2012) 1.2 E MT (1198 cc), Meerut with an IDV between ₹72,185 -₹1,82,199 and NCB at 0%.
The insurers mentioned are arranged in order of lowest to highest premium offered by all the insurer partners of SMC Insurance for a honda city(WB02-AT5151) petrol, 2022 1.5 I-VTEC CVT ZX (1497 cc), Kolkata with an IDV between Amount between ₹6,62,038 -₹14,44,170.
The insurers mentioned are arranged in order of lowest to highest premium offered by all the insurer partners of SMC Insurance for a kia seltos(GJ01-WN6788) petrol, 2023 G 1.5 HTX IVT (1497 cc), Ahmedabad with an IDV between Amount between₹6,37,686 -₹15,04,800.
Third party car insurance is the most basic cover required by law in India. It pays for injury, death, or property damage caused to someone else because of your car. It does not cover damage to your own vehicle. Think of it as legal protection, not car repair cover.
Best Third Party Insurance Plans for 2026
Once you understand what third party insurance does, the next question is simple. Which plan should you choose? Most third party policies follow IRDAI rules, so coverage stays similar. The difference usually comes from claim service, insurer support, and ease of renewal. Below is a quick comparison to help you shortlist.
Note: The order of the plans listed below does not reflect preference or performance.
Key Features and Benefits of Third Party Policy
Let’s now look at some of the key benefits and features of the policy:
Legal Compliance
Third party insurance is mandatory under Indian motor laws. Without it, driving your car is illegal, even if it never leaves your lane.
Financial Protection
If your car causes injury, death, or damage to someone else’s property, the insurer pays the compensation. These costs can be high. The policy absorbs that shock.
Unlimited Personal Injury Cover
There is no upper limit on compensation for third party injury or death. Courts decide the amount, and the insurer pays it on your behalf.
Affordable Premiums
Third party plans are the cheapest motor insurance option. Premiums are fixed by the regulator, so pricing stays predictable year after year.
Covers Legal Expenses
If a case goes to court, the policy also handles legal costs related to third party claims. That alone can save time, stress, and money.
Simple and Low Maintenance
No inspections, no add-ons, no repair estimates. You buy it, renew it, and stay legally covered.
Third party insurance is not about your car. It’s about responsibility. And for many drivers, that’s exactly enough.
Types of Car Insurance in India
Before choosing a policy, it helps to know what options existIn.India, car insurance broadly falls into three types. Each serves a different purpose, depending on how much protection you want and how much risk you are willing to carry. Here’s a simple comparison to make it clear.
Type of Car Insurance
What It Covers
Who It’s For
Third Party Insurance
Damage or injury caused to others
Legal compliance, budget users
Own Damage Insurance
Damage to your own car only
Cars with separate TP cover
Comprehensive Insurance
Third party + own car damage
Maximum protection seekers
Third party insurance sits at the base. It’s mandatory, affordable, and focused on legal responsibility. At platforms like SMC Insurance, you can view all three types, compare plans from multiple insurers, and decide without pressure.
What is Covered and Not Covered Under Third Party Car Insurance?
Once you buy a third party policy, the protection is very specific. It’s designed to shield you from legal and financial trouble caused by harm to others. It typically covers:
Injury or death of another person caused by your car
Damage to someone else’s property, like another vehicle, wall, or shop
Legal liability arising from third party claims
Court-awarded compensation without a preset upper limit for personal injury And that’s the heart of it. The policy steps in when someone else is affected because of your vehicle.
Now for the part many people miss. Third party insurance does not protect your car or you as the driver. That gap is important to understand before buying. It does not cover:
Damage to your own car due to accident, fire, or flood
Theft of your vehicle
Repairs or replacement costs for your car
Injuries to you, unless you buy a separate personal accident cover
Damage caused while driving under the influence or without a valid license
So yes, third party insurance keeps you legally safe. But it won’t help fix your car after an accident. That’s why many drivers start with third party cover and later upgrade. And that choice becomes easier when you can compare insurers and plans in one place, without noise or sales talk.
Third Party vs Comprehensive
At some point, every car owner weighs this choice. Stick to third party insurance or move to comprehensive cover.
Third party insurance keeps you legally compliant. It protects you if your car causes damage or injury to someone else. That’s it.
Comprehensive insurance goes further. It includes third party cover and also pays for damage to your own car due to accidents, theft, fire, floods, or vandalism.
Here’s a quick way to look at it:
Basis
Third Party Insurance
Comprehensive Insurance
Legal requirement
Mandatory
Optional
Covers damage to others
Yes
Yes
Covers your own car
No
Yes
Premium cost
Lower
Higher
Ideal for
Older cars, tight budgets
New or high-value cars
And the choice often comes down to how much risk you want to carry yourself.
Add-ons You Can Choose With Third Party
Third party policies are simple by design. But that doesn’t mean you’re locked out of all extras. A few add-ons can still be paired, depending on the insurer.
Personal Accident Cover for Owner-Driver This is the most common add-on. It pays compensation if the owner-driver is injured or killed in an accident. In fact, it’s mandatory unless you already have one.
Legal Liability for Paid Driver If you employ a driver, this add-on covers your legal responsibility if they are injured while driving your car.
Legal Liability for Employees Useful for commercial vehicles. It covers employees travelling or working with the vehicle, as required under law.
That’s usually the limit. Add-ons like zero depreciation or engine cover only come with comprehensive policies.
Premium Cost & Price Range
Third party insurance premiums are fixed by the regulator. So prices don’t change across insurers. What changes is the vehicle type and engine size. Here’s an example to show how pricing typically looks. Example: Petrol hatchback (1000 cc), private car
Policy Type
Approx Annual Premium
Third Party Insurance
Rs. 2,100 – Rs. 2,300
Third Party + Personal Accident Cover
Rs. 2,900 – Rs. 3,200
For larger engines or diesel cars, the premium goes up slightly. Commercial vehicles follow a different slab altogether.
Note: Premiums shown are indicative. Actual prices depend on engine capacity, fuel type, vehicle category, and IRDAI revisions.
What Affects Your Third Party Car Insurance Premium?
Third party premiums are regulated, so insurers don’t set prices freely. Still, the final amount depends on a few fixed factors tied to your vehicle.
Engine Capacity
Cars with larger engines attract higher premiums. A 1500 cc car costs more to insure than a 1000 cc one, even under third party cover.
Vehicle Type
Private cars, bikes, and commercial vehicles fall under different pricing slabs. Commercial vehicles usually pay more due to higher road exposure.
Fuel Type
Petrol, diesel, and electric vehicles are priced differently. Diesel cars often sit in a slightly higher bracket.
Regulatory Changes
Premiums can change when IRDAI revises rates. When that happens, all insurers follow the same updated pricing.
That’s why the price feels fixed. Because it mostly is.
How to Buy Third Party Car Insurance Online From SMC Insurance?
Buying third party insurance doesn’t need paperwork or long calls anymore. Here’s how it works on SMC Insurance:
On the homepage, click the Car Insurance category.
Step 3
You can then enter your registered vehicle number and click on “View Quotes". You also have the option to check quotes by giving the car number.
Step 4
The upcoming prompts will ask you for your vehicle details like brand, model, fuel type, variant and respective RTO.
Step 5
Once given, you can check the policy start and end date, confirm NCB details and view quotes from various insurers.
Step 6
On submission, SMC will display a list of available plans or quotes from partner insurers. You can view plan details like coverage, benefits, inclusions/exclusions, add-ons (if available), insured declared value (for vehicles), etc.
Step 7
Compare the available options and consider things like third-party vs comprehensive, add-ons (e.g. zero-depreciation, roadside assistance) as per your needs.
Step 8
Once you select the plan you want, click the button labeled “Buy Now”
Step 9
Fill out your personal details as required (owner name, address, contact, driving licence/RTO info or health info depending on policy). Ensure all details are accurate.
Step 10
Make the payment via the online gateway supported by the website. After payment confirmation you will receive your policy document or certificate electronically (through email or website account).
Step 11
Once everything is processed, your insurance policy becomes active. Keep a digital or printed copy of your policy/certificate for future reference.
Throughout the buying process, you have the option to contact the SMC Team for any kind of support you need.
Why Buy Car Insurance From SMC Insurance?
Choosing where you buy insurance matters, even if the policy looks the same. Here’s what sets SMC Insurance apart:
Access to multiple leading insurers in one place
Clear comparison without hidden terms
Support before purchase and during claims
Easy renewals with reminders
No pressure selling or confusing jargon
It’s built for people who want clarity, not conversations that go in circles.
How to Get Cheapest Third Party Car Insurance?
You can’t bargain on third party premiums. But you can still avoid paying more than needed. Keep these points in mind:
Buy directly online to avoid agent charges
Renew on time to avoid penalties or lapses
Choose only required add-ons, nothing extra
Compare insurers for service quality, not price
Keep your documents updated to avoid claim issues
Third party insurance is about compliance and protection. When bought right, it stays simple, affordable, and stress-free.
How to Renew Your Third Party Policy Online?
Renewing a third party policy is usually quicker than buying it the first time. And doing it on time saves you from fines, inspections, and stress. Here’s a clean way to do it online:
On the homepage, click the Car Insurance category.
Step 4
Enter your vehicle details
Step 5
Select third party insurance as the policy type
Step 6
Review the insurer name, premium, and policy term
Step 8
Add personal accident cover if required
Step 9
Pay online using your preferred mode
Step 10
Receive the renewed policy instantly on email
No documents to upload in most cases. No waiting period. And no gap in legal cover if you renew before expiry.
How to File a Third Party Car Insurance Claim?
Third party claims work differently from regular car repair claims. They follow a legal process and are settled through a motor accident claims tribunal. Here’s how it usually unfolds:
Inform your insurer immediately after the accident
File an FIR at the nearest police station
Share policy details with the affected third party
The third party files a claim case with the tribunal
The court examines evidence, reports, and fault
Compensation is decided and paid by the insurer
This process can take time. But once liability is established, the insurer handles the compensation and legal costs as per the court’s order.
Is Third Party Car Insurance Right for You?
That depends on how you use your car and how much risk you’re comfortable carrying. Third party insurance makes sense if:
Your car is old and has low resale value
You drive occasionally and want basic legal cover
You want the cheapest way to stay road-legal
You don’t want to spend on repairs through insurance
But if your car is new, expensive, or used daily, third party cover may feel limiting.
In the end, third party insurance isn’t about convenience or comfort. It’s about responsibility. And for many drivers, that’s exactly what they need.
Summing Up
Third party car insurance does one job, and it does it well. It keeps you legally protected if your car causes harm to someone else. Nothing more, nothing less. If you want deeper protection, there’s more to explore. Own damage cover. Comprehensive plans. Add-ons that reduce out-of-pocket costs. At SMC Insurance, you can compare all options from multiple insurers in one place and decide what fits your car, budget, and driving habits without the usual confusion.
Disclaimer:The information provided on this platform is intended for general awareness and educational purposes. While every effort is made to ensure accuracy, some details may change with policy updates, regulatory revisions, or insurer-specific modifications. Readers should verify current terms and conditions directly with relevant insurers or through professional consultation before making any decision.
All views and analyses presented are based on publicly available data, internal research, and other sources considered reliable at the time of writing. These do not constitute professional advice, recommendations, or guarantees of any product’s performance. Readers are encouraged to assess the information independently and seek qualified guidance suited to their individual requirements. Customers are advised to review official sales brochures, policy documents, and disclosures before proceeding with any purchase or commitment.
I have purchased a new vehicle and was looking for the car insurance with comprehensive coverage. SMC Website was quick to assist me with the premium amount and the payment process was easy. Happy with their services.
Payal kaur Chandigarh, April 28, 2025
Smooth Process
I purchased my car insurance from SMC, and it has truly been worth it. When my car caused third-party damage, I simply shared the photos and videos with them. Thanks to Sachin, the customer executive, my insurer settled the claim within just a week. Really satisfied with the service!
Rajnish Singh Puna, April 16, 2025
Excellent Support
This is the best insurance company as they have assisted me well while buying the car insurance policy. Kudos to SMC!
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