With many of us being a little more cost-conscious these days, it can be tempting to cut back on our car insurance coverage. But is that wise?

If you own a vehicle, then you’ve got a lot to consider. Did you blow all your budget on the car? Could you afford to undertake any repairs yourself in the event of an accident? What’s your attitude towards risk? This blog explores these questions in more detail to help you decide what cover could be right for you.


So, you’ve heard about it but aren’t exactly sure what third-party car insurance is? Here are some simple facts:

  • It’s mandatory: under UAE Federal Law it is the minimum level of cover you must have if you own a vehicle and want to drive it.
  • It is the lowest form of cover available in the market.
  • A wide range of Insurers offer it here.
  • It’s affordable.
  • Its pricing is monitored by the insurance regulator in Dubai so the cost is always considered fair on the consumer based on the cover provided.
  • It covers your legal liability towards others in respect of damage to their vehicle or their property caused by your driving, as well as any bodily injury or death caused by you whilst driving your vehicle.

Now that you understand more about it, you may be thinking whether it’s the right cover for you. Put simply, third party car insurance is a good option if:

  • You’re on a budget.
  • Your car is of relatively low value.
  • Your car is relatively cheap to repair.
  • You can easily cover the costs of repairs yourself.
  • You’re looking to build up No Claims Discount or Bonus by driving carefully
  • You’re a new or relatively inexperienced driver.
  • It’s your first time to buy car insurance in the UAE.


The other type of cover available in Dubai, and across the UAE in general, is comprehensive car insurance. So, what exactly is it? Here are some simple facts:

  • It’s the highest level of cover available in the market.
  • A wide range of Insurers offer it here.
  • It’s more affordable than many realise.
  • It gives peace of mind in that it protects you, your vehicle and your liability to others.
  • It provides a wide range of covers as standard, with the option to add a range of others to suit you and your needs.

If comprehensive car insurance is something you’re considering but not sure about, it’s a good option if:

  • You have a vehicle that you could not afford to pay to repair in the event of an incident involving you alone or a third-party.
  • Your vehicle is essential to you and your life, so you’d need a replacement or hire car in the event yours was off the road following an accident.
  • You have a vehicle of a relatively high value.
  • You have an auto-loan or other finance on your vehicle currently with an outstanding balance.
  • You have a decent level of No Claims Discount/Bonus that can be offset against the base premium quoted.
  • You’re an experienced driver who wants to protect their No Claims Discount/Bonus (this is not possible with third party car insurance policies).

Insurance is a matter of choice and whilst there are only two types of cover available, thankfully there is a wide range of both 3rd party car insurance and comprehensive car insurance in Dubai, allowing you to select an Insurer, policy and price that’s right for you.

About Author

Rachel Al Mughairi

About Author

With over 34 years in the international insurance industry in a variety of senior management roles, and as holder of the Diploma in Insurance from the Chartered Insurance Institute, Rachel surely knows her insurance! With experience in London, continental Europe and the Middle East, Rachel is here to share her knowledge and help you understand more about insurance products in this easy-to-understand series of videos and blogs.