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The Difference Between Third Party and Comprehensive

The Difference Between Third Party and Comprehensive

Technically speaking, both Comprehensive and Third Party insurance aim to provide you with one main benefit – cover you against losses associated with your motor vehicle. But, there’s a lot of difference between the two, and exactly what type of losses you are protected against for each.

In a nutshell, a Third Party Insurance policy only protects you against losses and damage you are responsible for to a Third Party, whereas a Comprehensive Insurance policy will also cover you for damage to your vehicle.

It is extremely important  to choose the right kind of motor vehicle insurance so that you can stay covered in case of an accident. In this article, we’ll explain and compare both types of coverage to help you pick the right one.

Third Party Car Insurance

Third Party Insurance is considered the most basic motor insurance policy you can purchase. It is the lowest level of coverage that you can buy to ensure that you meet the legal requirements of the Motor Vehicles Insurance (Third-Party Risks) Act, which is the law that governs the operation of Motor Vehicles in Jamaica. This legislation makes car insurance mandatory in Jamaica, and also imposes a requirement to present valid proof of insurance to register or transfer a vehicle in your name.

The idea behind a Third Party insurance policy is to provide protection to everyone else on the road. That is to say that you, the policyholder, are covered against losses you cause that result in property damage or injury to other people while operating your motor vehicle.

Under a Third Party insurance policy you don’t have to make out of pocket payments to repay damage or injury caused to third parties if you are at fault in an accident. It is important to note, though, that the protection under the policy is not unlimited. Third Party policies will always have a maximum limit of coverage stated in the policy and if the losses you cause exceed that amount, you may be called on to pay up.

Comprehensive Car Insurance

Unfortunately, motor vehicle accidents are all too common in Jamaica, and while not all accidents may include personal injury or loss, they can certainly result in costly vehicle damage that can leave the vehicle owner severely out of pocket. Also, most people tend to have an overly confident view about their driving ability and they tend to forget that an accident is exactly that… an accident. It’s unintentional and usually resulting from a single, quick momentary lapse in judgement.

Comprehensive Car Insurance will cover you against both third party losses, as well as damage to your vehicle, whether you are wrong or right in an accident. Having a Comprehensive policy can be of great help as it significantly reduces your out of pocket costs to fix your vehicle if you are wrong in an accident or if the other party doesn’t have adequate insurance, or any insurance for that matter. Comprehensive policies will also provide you with coverage for your vehicle against Fire and Theft losses, which Third Party policies won’t.

Third Party Insurance vs. Comprehensive Insurance:

Understanding The Differences

Now that you’ve understood the basic concepts, let’s look at some of the main differences between the two coverage types:


Third Party Insurance

Comprehensive Insurance




Bodily Injury to Third Parties

Property Damage to Third Parties

Collision Damage


Fire Damage

Windscreen Damage







Meets minimum legal requirements

Protection against liability to Third Parties when I am wrong

Protection for damage to my vehicle

Cheap Premium







Increased limits of protection offered for third party limits

Protected No Claim Bonus

Courtesy Car/Alternative Transportation

Wrecker/Breakdown Coverage

Personal Accident Coverage


Where do you go from here?

Overall, we believe Comprehensive Car Insurance is a better option, as it offers complete coverage and peace of mind. It might cost a bit more, but it can help you save money in the long-run. Our Comprehensive policies cover accidental collision, fire, theft, overturning, external explosion, natural disasters, and self-ignition, whether it’s your fault or not. Plus, we have a host of add-ons and benefits to suit all types of clients

Click here to check out our full policy wording for all the nuts and bolts or, call us at 876-656-8000 to speak to one of our Underwriters today for more info.


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