Benefits of Third-Party Car Insurance in the UAE
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Often dismissed as the ugly step-sister of the motor insurance world, third-party car insurance gets a bad rep. Third-party liability insurance is the most basic form of insurance in the UAE. It protects you against any negligence you might conduct on the road and also provides for damages done to the vehicle of the other party involved in a collision. It also covers the physical injuries to the other party.
Sure, it doesn’t provide full coverage; but it has its benefits that can’t be denied. Lets not dilly dally and dive straight into what makes third-party car insurance such a great policy to buy.
Cheap Car Insurance Option
Third-party car insurance is notoriously cheap. Even buyers who don’t like third-party car insurance admit that it is comparatively the cheapest option available. In cities like Dubai, Abu Dhabi, and Ras Al-Khaimah the standard of living is high. These are costly cities. People want to save as much as they can wherever they can. So why not with motor insurance?
For residents with a tight budget, this is a better insurance option than the comprehensive version.
Right Side of the Law
Car insurance is mandatory in the UAE. You can’t drive without insurance. If you do you can face some heavy fines. Not to mention it’s downright embarrassing. You might be the best driver in the world but in the UAE you have to have an insurance policy to drive your car out of the garage. So if all you need to do is fulfill an obligation than why not with third-party car insurance? It is a myth that you need to buy comprehensive insurance to make the cut. You can buy the minimum policy and that is good enough in the eyes of the law.
Learners and Teenagers Best Friend
Is your teenager feeling adventurous? Are they keen on getting another skill under their belt? There’s nothing like sitting behind a steering wheel to feel like an accomplished adult. But most insurance providers won’t want to insure a vehicle they know will be driven by an inexperienced teenager. It will definitely hike your current insurance premium if you add your teenager to your policy.
It makes more sense to invest in an old second-hand car and get them third-party car insurance of their own. The premium will be negligible and it might just teach them some responsibility as well! That’s what we call a win-win.
Minimum Mileage and Set Routines
For residents who have a set routine, they know which road is congested at which hour and which side streets to take to avoid rash drivers. No, we’re not saying they are completely immune to risk, but they are more experienced on the roads they travel. They know what to look out for. These routine cars require less risk and are the best candidates for third-party car insurance. When the risk is so little it makes no sense to invest in an insurance policy that will cost you an arm and a leg.
The same principle applies to mileage. Cars that don’t have to travel much during the day incur less risk. If a house car is only used for groceries and the children’s school run it won’t be deemed worthy of comprehensive insurance.
Oldies Love Third-Party Car Insurance
As with teenagers, people over 65 get a raw deal in insurance premium calculation. Teenagers are considered inexperienced, hence a risk. But people over 65 have a lot of experience. Motor insurance companies weigh their experience against their health concerns and failing eyes and deem the later heavier.
So what can one do? The best way to offset the increased premium is to opt for third-party car insurance. You can lower the premium by taking the less expensive insurance policy. This way the Golden Oldies can still ride around with their independence unhampered and their retirement plans still heavy with funds for fun activities.
The majority of the UAE’s population is ex-pats. An immigrant workforce is temporary. Though many residents would want to believe life in the UAE is forever, it is temporary. Many use this opportunity as a stepping stone to better themselves. But most use it as an opportunity to save as much as they can. For these temporary residents, third-party car insurance is the solution. It allows them to fulfill their obligation towards buying car insurance but not paying too much either.
Third-party car insurance is a great insurance policy. It just needs to be understood, and not dismissed out of hand. We hope our blog was informative and helped change your mind. For more on third-party car insurance visit buyanyinsurance.ae
Originally published Jul 20, 2020 03:22:15 AM, updated May 31, 2021