Comprehensive vs Third-Party Insurance

First-party insurance (also known as comprehensive) offers full protection for both you and third parties. This includes accidents, fire, and theft. If you're involved in an accident or your car is stolen, you can file a claim with your insurance company. Even if the accident is your fault and another vehicle is involved, the third party can still claim through your policy. On the other hand, third-party insurance only protects third parties — meaning other people, not you. For example, if you accidentally hit another car on the highway, your insurance company will cover the compensation for the other party. However, any damage to your own vehicle will not be covered and must be borne by you.