Insurance for Rarely used Vehicle

insurance for rarely used vehicle

So, you need an insurance policy for a rarely used vehicle. You have a car which you rarely drive or you have a bike or scooty that you rarely ride. You want to go for that occasional use vehicle insurance.

First thing first. Lets discuss what is comprehensive insurance and third party insurance. Comprehensive vehicle insurance policy offers overall protection against damages to the insured’s two wheeler or four wheeler as a result of incidents unrelated to a collision or an accident. Comprehensive typically covers damage from fire, vandalism or falling objects, e.g. a tree. But a third party liability vehicle  insurance offers cover against any legal liability to a third party caused by the insured.

Now, any losses arising due to damages or injury caused by the policy holder to a third party or third party’s property, are covered under the 3rd party car / bike insurance policy. As per the Indian Motor Vehicles Act, a third party liability cover is a must and a basic requirement under a vehicle’s insurance policy. You should carry the insurance policy papers while riving your car or riding your bike.

Let’s discuss the terminology here :

First party: The insured person or policy holder
Second party: The insurance company
Third party: The person who claims for the damages caused by the policy holder, i.e. the 1st party.

These images show a tentative price comparison between comprehensive and third party insurance policy pricing :

comprehensive scooty bike insurance comparison
two wheeler third party insurance comparison

When an insured person with a third party insurance policy is held legally liable for injuries or damage done to a third party, then policy issuing insurance company indemnifies the policy holder.


Now if you want to save some bucks while going for insurance for rarely used vehicle you can go for third party car / bike / scooty / motor vehicle insurance only.

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