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How to choose between 1st party and 3rd party car insurance

Updated: Jan 3

Need more information on 1st party or 3rd party insurance for your car?


Well, here’s a quick and easy break down on what those terms mean when choosing your next car insurance!😊👉


1st Party:

1st party car insurance, or often referred to as comprehensive coverage, is your shield against various risks. It covers damages to your vehicle, regardless of who's at fault. If your car faces damage 1st party insurance typically foots the bill for repairs, minimizing your out-of-pocket expenses.


3rd Party:

3rd party car insurance On the other hand, provides coverage for damages caused to someone else's vehicle or property. If you're at fault in an accident, this insurance covers the costs incurred by the other party. However, it doesn't protect your vehicle. Fire and theft is another type of 3rd Party.


Examples of Coverage:


1-If a car is damaged after hitting a streetlight

car hit streetlight car insurance









  • 1st Party- YES can claim under own damage & NCD is effected

  • 3rd Party- Not claimable


2-If a car is damaged after hitting a wall during parking










  • 1st Party- YES can claim under Own Damage & NCD is effected

  • 3rd Party- Not claimable


3- If a car windscreen is damaged by a fallen tree

tree fallen on car newspaper article







Image credit: Malay Mail


  • 1st Party- YES can claim & NCD is not effected if got add-on for windscreen. Without add-on NCD is effected.

  • 3rd Party- Not claimable

4- If a car is stolen

car stolen image









  • 1st Party- YES can claim & NCD is effected

  • 3rd Party- Not claimable

5- If you accidently hit another car

simpson character reverse and hit several cars










  • 1st Party- YES you can claim & other party can claim from you also. NCD is effected

  • 3rd Party- Other party can claim from you


6- If another car hit your car and its not your fault

a girl saying my bad after an accident









  • 1st Party & 3rd Party-YES you can claim from them

  • Your NCD not effected



Here's a diagram for better understanding👇

Accident Types

1st Party/ Comprehensive

3rd Party Fire & Theft

3rd Party

Your car is damaged by your own fault (Own Damage)

Wear and tear

Damage by falling objects

Fire, explosion, lightning

Windscreen or windows damaged

Thefts, burglary, house breakings

Towing

For more info you may read further on our policy wording



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