Third-party insurance covers have an advantage in that the policyholder usually gets relieved from the legal burden when an accident happens. The insurer typically takes care of all the related burdens, granting them sufficient time to recover from the stress related to the event.
However, unlike most other insurance covers, LIFT insurance has unique limitations that give other policies the upper hand over it.
Here are the limits of LIFT insurance.
1. Policyholders usually feel like they are paying for a policy they will never use.
Were it not that the policy is a mandatory requirement, most people would choose to stay without the insurance cover rather than pay premiums for something they are sure will directly benefit a third party than them. However, it is a requirement vehicle owners cannot escape.
2. Policyholders are usually left with the burden of repairing or replacing their car following an accident.
The car may get poorly damaged or written off when an accident occurs. When this happens, the insurer will still cover the damages to the third party and leave the policyholder taking care of the injuries and damages to their car.
On the contrary, other insurance policies such as the comprehensive policy would have covered both the policyholder and the other parties.
3. Does not cover the car against theft.
A third-party liability policy does not cover instances of theft, vandalism, and other damages that can happen to the policyholder’s car. When the car gets stolen, the responsibility of finding or buying a new one remains on the owner even when the policy is still in place. Unlike other insurance policies, the insurance company cannot help in such an instance.
4. There are no available Add-ons
Unlike other insurance policies, third-party insurance coverage does not provide other add-ons to the policyholder. Therefore, the policyholder cannot customize the insurance policy according to their requirements or preferences.
A good example is where other policies offer a provision for policyholders to be in a position to opt for Engine Protection Cover for the Engine, Passenger cover to cover for the passengers when they are traveling on the car. LIFT Insurance does not offer such add-ons. Such provisions are only available with standalone own-damage car insurance plans and comprehensive policies.
Typically, it is common knowledge that having a third-party liability policy is mandatory. LIFT (Third Party Insurance) Insurance is vital in many ways but has numerous limitations outlined above. It is an excellent option to run to when someone is in urgent need because of its ease of accessibility and availability. However, this does not mean that car owners cannot opt for other insurance policies that meet their needs.
When finding a policy, the most vital thing is getting the policy with a reliable insurance broker since not all brokers are reliable. There are numerous who develop complications when in an accident to avoid paying the insured.