No opinions about your first set of queries.
You might have got a misconception about 3rd party insurance coverage.
Car insurance involves 3 parties:
The owner/driver of the insured car/person (1st party),
The insurer (2nd party),
The other party involved in the accident, which can be a person or a vehicle (3rd party).
If you're the owner/insured of the car insurance, and you nominate another person to drive the car, that person is called the "authorised driver" and not "3rd party".
For some insurance policies, anyone you give permission to drive is considered an "authorised driver" and they will be covered by the policies.
For some other insurance policies, you must let the insurers know the names of the authorised drivers and only they are allowed to drive the car with insurance coverage.
There are 3 types of car insurance coverages available:
- Comprehensive,
- 3rd party, fire & theft,
- 3rd party only.
Comprehensive says it all, covers a lot of things, including own damage, loss of car due to fire hazard, theft of vehicle, and 3rd party liabilities (damage to 3rd party property and/or injuries inflicted during accident, etc.).
Premium is the highest of the 3 types.
3rd party, fire & theft only covers liabilities to 3rd party, fire hazard, and theft of vehicle. It does not cover expenses incurred for own damage.
Premium is lower than comprehensive cover.
3rd party only covers 3rd party liabilities. Nothing else.
Premium is very low for such coverage.
For most insurance companies, they will insist on comprehensive coverage if the car is less than 7 years old, and under hire purchase agreement (loan).