What is the difference between comprehensive insurance and third party insurance for vehicles?

Vehicle insurance is divided into two categories:

Third party insurance:

Third party insurance is the type of insurance required to legally drive a vehicle. It mainly covers the damage you may cause to third parties (people and property) in the event of an accident for which you are considered responsible. This includes injuries to other people, damage to vehicles, and damage to public or private property.

The main characteristics of third party insurance are:

Limited coverage:
It only covers damage caused to third parties and does not provide protection for your own vehicle.

Generally lower premium:
As coverage is limited, premiums are usually more affordable compared to comprehensive insurance.

It does not cover own damage: If you have an accident and your vehicle suffers damage, it will not be covered by this type of insurance. You would have to bear the repair costs yourself.

Comprehensive insurance (or comprehensive risk):
Comprehensive insurance offers broader and more complete coverage compared to third-party insurance. In addition to covering damages to third parties, it also includes protection for your own vehicle, whether due to accidents in which you are responsible or due to other factors such as theft, vandalism, fire, collision and more.

The main characteristics of comprehensive insurance are:

Complete coverage

Generally higher premium:
Due to the broader coverage, premiums tend to be higher compared to third party insurance.

The main difference between ALL RISK INSURANCE and THIRD PARTY INSURANCE lies in the extent of coverage. While third party insurance focuses on covering damage to third parties, comprehensive insurance offers more complete coverage by including both damage to third parties and damage to the insured vehicle.

The choice between these two types of insurance will depend on your needs, budget and desired level of protection.