Third-party car insurance coverage is a common choice among drivers in the UAE due to its simplicity and affordability. This type of car insurance provides basic protection, focusing on covering specific types of incidents. However, the coverage is limited when it comes to third-party insurance.
This guide will explore what is included in third-party car insurance coverage and what isn’t, helping you decide your insurance needs.
What is third-party car insurance coverage?
Third-party car insurance in the UAE covers damages or injuries you cause to other individuals or their property while driving. This insurance is required for all vehicles and ensures coverage for the other party’s costs if you are at fault in an accident. However, it does not cover damage to your car or any injuries you may sustain.
Key features of third-party car insurance coverage
- Mandatory requirement: Third-party car insurance is required by law for all vehicle owners in the UAE, regulated by the UAE Insurance Authority (now part of the Central Bank of the UAE).
- Affordable premiums: It is typically less expensive than comprehensive insurance due to its limited coverage.
- Basic coverage: This is the most basic insurance option available.
- Widely available: Offered by many insurers across the UAE.
- Regulated pricing: Prices are monitored by Dubai’s insurance regulator to ensure fairness based on the coverage provided.
- Legal liability: Covers damages to other property or vehicles and injuries or death caused by your driving.
What does third-party car insurance cover?
The following is what you get in the third-party car insurance coverage:
- Bodily injury: Provides coverage for medical costs, including treatment expenses, and compensates for any pain and suffering caused to others in an accident where you are at fault.
- Property damage: Includes paying for the repair or replacement of another person’s vehicle or property, including things like buildings or fences, when you are at fault in an accident. However, the limit to this cover varies per insurer.
- Car damage: Covers the repair or replacement costs if you cause damage to another person’s car in an accident where you are at fault. This means your insurance will pay for repairing or replacing the other person’s vehicle.
- Accidental death: Provides compensation to the family or dependents of an individual who dies as a result of an accident caused by your driving. This helps cover expenses such as funeral costs and lost income.
What does third-party car insurance not cover?
Since you get limited third-party car insurance coverage options, this is what is not covered:
- Damage to your own car: Does not cover any repair or replacement costs for your own car if it is damaged in an accident. You must purchase additional insurance, such as comprehensive or collision coverage.
- Personal injury to the driver: Excludes coverage for medical expenses or compensation for injuries sustained by you, the driver, in an accident. Separate personal accident coverage or a comprehensive policy is needed to cover your medical costs.
- Theft or vandalism: Does not protect against the theft of your vehicle or damage resulting from vandalism.
- Damage to personal belongings: Does not cover any personal belongings inside your vehicle, such as electronics, clothing, or other valuables, if they are stolen or damaged in an accident.
- Losses due to natural disasters: Does not cover damages that occurred because of natural disasters such as floods, earthquakes, or storms.
Coverage comparison: Third-party insurance vs comprehensive insurance
Choosing between comprehensive and third-party car insurance depends on various factors, such as the value of your vehicle, your budget, and the level of risk you are willing to take.
Here’s a comparison to help you decide:
| Features | Third-party insurance | Comprehensive insurance |
| Coverage for own vehicle | No | Yes |
| Coverage for third-party damages | Yes | Yes |
| Protection against theft | No | Yes |
| coverage for natural disasters | No | Yes (Many insurers) |
| Premium cost | Generally lower | Higher |
| Legal requirement | Yes (Mandatory) | No (Optional) |
Should you get third-party car insurance coverage?
Third-party car insurance could be a suitable option if:
- You’re looking for a cost-effective insurance plan.
- Your car is cheap to repair and maintain.
- Your vehicle has a lower market value.
- You prefer to pay for your own car repairs if necessary.
Final takeaway
Choosing the right type of insurance depends on balancing your budget with your coverage needs. Third-party car insurance coverage protects against liabilities to others but does not protect your own vehicle. Before deciding, it’s important to evaluate your circumstances and needs carefully, considering factors like the price and your car’s value.
Online comparison platforms like InsuranceMarket.ae can help you navigate these choices by offering expert advice and multiple insurance options tailored to your specific requirements.
Whether you need guidance on selecting the right coverage or finding the best prices, the experienced team of these platforms ensure you have the peace of mind and protection you need on the road.
Frequently Asked Questions (FAQs)
What’s better, comprehensive or third-party?
Choosing between comprehensive and third-party insurance depends on your needs and circumstances. Comprehensive insurance provides broader coverage, including for your own car, theft, and natural disasters. Third-party insurance is cheaper but only covers damages to others. Consider the value of your vehicle and your financial situation when deciding.
What does third-party insurance cover in the UAE?
In the UAE, third-party car insurance coverage includes damages to other people’s property and injuries rendered to others in an accident for which you are at fault. However, it does not cover damages to your own vehicle or injuries to yourself.
How do I know if my car insurance is comprehensive or third-party?
Check your policy document to determine whether your insurance is comprehensive or third-party. The document will specify the type of coverage. You can also contact your insurer for clarification.
Should I go for third-party insurance?
While third-party insurance is an option, it may not be the most suitable choice for those seeking broader protection. Comprehensive insurance provides more extensive coverage, protecting your vehicle and personal belongings from risks such as theft, fire, and accidents. Comprehensive insurance is generally recommended for better peace of mind and protection.
