Third Party Car Insurance

• Third party insurance covers damage or injuries that the insured causes to a third party. It offers both property damage and bodily injury liability. The insured must be found at fault for third party claims to be honored. Third party insurance does not cover the cost of damage to the insured party's vehicle or injuries.
  
  

Comprehensive Insurance

• Comprehensive insurance covers the cost of damage to the insured vehicle that is caused by something other than an accident or collision. Examples of coverage would be fire, theft, flood or animal damage. It does not cover damage costs to third party vehicles. Comprehensive insurance normally has a deductible associated with it.
  
  

State Requirements

• In the majority of states, third party liability insurance is mandatory. Proof of insurance is generally required to register a vehicle. Comprehensive coverage, on the other hand, is not a required coverage and is often not recommended on older, low-value vehicles.