Owning a car means taking responsibility for its upkeep, safety and long-term value. While third-party car insurance is mandatory by law, it only covers damages caused to others. To protect your own vehicle, you must invest in a first-party car insurance policy.
This type of coverage ensures that your car is financially protected against accidents, theft and natural disasters. Understanding how it works can help you choose the right plan when you compare different motor insurance options.
What Does First-Party Car Insurance Mean?
“First party” refers to you, the policyholder, and your vehicle. In simple terms, first-party car insurance covers the damages to your car caused by unforeseen events, such as accidents, fire, theft or natural calamities like floods and earthquakes.
This type of coverage falls under a comprehensive car insurance policy, which combines first-party (own damage) and third-party protection. So, if your car is damaged in a collision or vandalised, you can file a claim to recover repair or replacement costs. First-party insurance ensures that your vehicle remains protected, regardless of who was at fault in the incident.
What is Covered Under First-Party Car Insurance?
A first-party car insurance policy offers broad protection for your own vehicle. Here is what is typically included:
| Coverage Type | Description |
| Accidental Damage | Covers repairs if your car is damaged in an accident or collision. |
| Fire and Explosions | Protects against loss due to fire, explosion or lightning |
| Natural Disasters | Offers compensation for damage caused by floods, earthquakes or storms |
| Theft | Covers the complete loss of your car if it is stolen |
| Vandalism or Riots | Provides coverage for damage due to riots, strikes or malicious acts |
| Personal Accident Cover | Offers financial protection to the owner-driver in case of accidental injury or death |
For instance, if a falling tree damages your car during a storm, your insurer will cover the repair expenses as part of the first-party claim.
What is Not Covered?
While first-party car insurance is extensive, certain exclusions apply. Insurers do not cover:
| Exclusion | Details |
| Driving without a valid licence | Claims are rejected if the driver lacks a valid licence. |
| Driving under alcohol or drugs influence | Any damage occurring under such conditions is not covered. |
| Wear and tear | Normal depreciation and ageing of parts are excluded. |
| Mechanical or electrical breakdown | Repairs due to internal failures aren’t covered. |
| Misuse of the vehicle | Using a private car for commercial purposes can void coverage. |
Being aware of these exclusions ensures that you maintain your policy correctly and avoid claim rejections.
Why Should You Consider First-Party Coverage?
If you own a new or high-value car, first-party car insurance is a must. It provides complete financial protection for your vehicle, not just for liabilities towards others.
Compared to third-party insurance, this coverage shields your car from unpredictable damage, which can otherwise lead to expensive repairs.
In addition, you can easily buy car insurance online, customise your plan with add-ons like zero depreciation, roadside assistance or engine protection and renew it without paperwork. It is a convenient and cost-effective way to ensure your car is protected at all times.
Choose a Comprehensive Plan from TATA AIG
When choosing the right protection, TATA AIG’s car insurance plans offer a strong combination of first-party car insurance and third-party coverage.
With features like cashless repairs across a wide network of garages, seamless online claim filing and quick policy issuance, TATA AIG makes it easy to safeguard your vehicle from all angles.
Protect your car with a comprehensive plan from a trusted insurer and drive with confidence knowing you are covered against every unexpected event.
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