Comprehensive vs. Third-Party Hyundai Car Insurance: Which One Should You Choose?

It can be difficult to choose the right car insurance these days, especially with several different options available. For Hyundai car owners, the choice often comes down to comprehensive car insurance or third-party car insurance. Each type of car insurance covers different things, and knowing the differences between third-party and comprehensive car insurance is important to insuring yourself correctly. Comprehensive car insurance usually covers a greater range of things, including damage to your own car, while third-party car insurance will only cover damage to an external person or vehicle. Which policy is better value and provides you with peace of mind is often the question for car owners. Let’s take a look at the main differences between comprehensive car insurance and third-party car insurance for your Hyundai and how both will protect you and your vehicle.

Understanding Third-Party Hyundai Car Insurance

Third-party insurance is a mandatory requirement under Indian law (Motor Vehicles Act). It provides financial protection against liabilities arising due to bodily injuries, death, or property damage to a third party caused by your Hyundai.

This cover includes:

• Third-party insurance typically covers third parties outside the insured vehicle (e.g., pedestrians or other vehicles). Coverage for passengers inside the insured vehicle may depend on specific policy terms and add-ons.
• Liability for third-party property damage (excluding property owned by the insured). Personal Accident (PA) cover is mandatory under Indian law for the owner-driver. While it is commonly included in comprehensive policies, it can also be purchased separately with third-party insurance to provide coverage for the owner-driver in case of personal injury or death.

This policy does not cover:

• Own damage to your Hyundai vehicle
• Personal injuries to the owner-driver beyond mandatory PA cover

The third-party premium is fixed annually by IRDAI based on engine cubic capacity, making this the most affordable car insurance option. But it offers only basic financial protection.

What Comprehensive Hyundai Car Insurance Offers?

A comprehensive policy includes coverage for both third-party liabilities and own damage. It protects against:

• Accidental damage
• Fire and explosion
• Theft and burglary
• Natural calamities like floods, storms, earthquakes
• Malicious acts and riots
• Transit-related damages (via road, rail, lift, elevator, air)

It also includes:

• Personal Accident Cover up to 15 lakhs for the owner-driver (subject to nominee details and valid driving license)
• Coverage for damage to electrical/electronic fittings and CNG/LPG bi-fuel kits (if declared)

If your Hyundai Creta is damaged due to a landslide while driving in Himachal, policies from platforms like TATA AIG will cover repair costs ,subject to depreciation clauses.

Comprehensive vs. Third-Party Hyundai Insurance: A Technical Comparison

Why Do Hyundai Owners Often Choose Comprehensive Insurance?

Hyundai vehicles come equipped with advanced features, aesthetic appeal, and performance—all of which deserve robust protection. Here's why comprehensive insurance is preferred:

1. Complete Financial Protection: This covers everything from minor dents to total loss claims
2. Peace of Mind During Natural Calamities: Essential for cities prone to floods, hailstorms, or earthquakes
3. Access to Add-Ons: Enhances the base policy. For instance, Zero Depreciation (TA01) ensures full reimbursement without depreciation deductions for parts (up to 2 claims per year). The Zero Depreciation add-on ensures that no depreciation is applied to the replacement parts during claims, helping you avoid deductions for parts like plastic, rubber, and metal. This add-on is particularly beneficial in the first few years of owning a car when the vehicle's value is higher.
4. Return to Invoice: This offers full on-road cost reimbursement (including taxes and registration) if your Hyundai is declared a total loss (TA05 Add-on).

Third-Party Hyundai Insurance

Although comprehensive is preferable, third-party insurance is a reasonable option when:

• Your vehicle is more than 10 years old, and spare parts are not readily available
• You drive the vehicle infrequently (e.g., used now and then or as a second car)
• You want to meet legal requirements at a low cost

Still, note that under third-party-only plans, own damages, personal repairs, or theft losses will not be reimbursed.

Powerful Add-On Covers

You can enrich your comprehensive Hyundai insurance policy with these essential add-ons:

• Zero Depreciation Cover (TA01): Avoids deduction on replaced parts
• Engine Protect: For water ingress or oil leakages
• Return to Invoice (TA05): Reimburses full invoice value during total loss
• No Claim Bonus Protection (TA06): Keeps your discount intact even after a claim
• Daily Allowance (TA02): Pays allowance for transport when your car is in the garage

All these add-ons are subject to terms, availability, and underwriting guidelines.

Why does IDV and Depreciation Matter When Choosing a Policy?

When buying Hyundai insurance, it’s crucial to understand how your car’s IDV (Insured Declared Value) and depreciation impact the coverage and premium. The IDV is your car's current market value and is the maximum sum insured under the policy.

According to the Auto Secure Private Car Package Policy, depreciation is based on your car's age.

 For example:

• No depreciation if the car is less than 6 months old
• 10% for vehicles between 1-2 years
• Up to 50% if the car is older than 10 years

Depreciation also applies to parts like:

• 50% for plastic and rubber parts
• 30% for fibre components
• Nil for glass parts

Unless a Zero Depreciation add-on is purchased, these rates apply to own-damage claims under comprehensive policies.

For Hyundai car owners (especially people with new models like the Alcazar and Tucson), it is advisable to take a comprehensive policy with a Zero Depreciation add-on (TA01) where the costs of the replaced parts are covered during the claim process. It's a wise financial choice, ensuring you receive the most out of your policy since it is worthwhile during the initial years of ownership when the vehicle's value is higher.

Choosing your policy based on IDV ensures that in case of a total loss or theft, your claim reflects the vehicle's real value.

Buying Hyundai Car Insurance Online

The process of securing car insurance online is quick and policyholder-friendly:

1. Visit the insurer's website.
2. Enter your Hyundai's registration number and personal details
3. Choose your plan and preferred add-ons
4. Get a quote via our premium calculator
5. Pay securely and download your e-policy instantly

This ensures:

• End-to-end paperless experience
• Real-time premium quotes based on selected IDV
• Instant policy issuance and renewal

Conclusion: Comprehensive or Third-Party?

Comprehensive coverage is the superior choice if you're serious about long-term protection and want to protect your Hyundai from various uncertainties. It aligns with modern driving needs, evolving risk scenarios, and the actual value of your Hyundai. However, for legacy vehicles or minimal use cases, third-party insurance fulfills the basic legal obligation at an affordable cost.

*Standard T&C Apply

#Visit the official website of IRDAI for further details.

Claims are subject to terms and conditions set forth under the motor insurance policy.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.