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Benefits of Third-Party Car Insurance in the UAE

Written by Sahar

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 benefits that can’t be denied. Let’s, not dilly dally and dive into what makes third-party car insurance a great policy to buy.

Benefits of Third-Party Car Insurance in the UAE

Cheap Car Insurance Option

Third-party car insurance is notoriously cheap. Even buyers who don’t like it admit that it is comparatively the cheapest option available. In cities like Dubai, Abu Dhabi, and Ras Al-Khaimah, living standards are high. These are expensive cities. People want to save as much as they can wherever they can. So why not with motor insurance?

This is a better insurance option for residents with a tight budget than the extended version.

Right Side of the Law

You might be wondering if third party car insurance mandatory in UAE? Yes, 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 globally, 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, why not with third-party car insurance?

It is a myth that you need to buy comprehensive insurance to cut. You can buy the minimum policy, which 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. If you add your teenager to your policy, it will hike your current insurance premium.

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 also teach them some responsibility! That’s what we call a win-win.

Minimum Mileage and Set Routines

Residents who have a set routine 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 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

People over 65 get a raw deal in insurance premium calculation, as with teenagers. 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 latter 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 retirement plans heavy with funds for fun activities.

Temporary Solution

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 pay 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

Frequently Asked Questions:

Is third party car insurance worth it?

The simple answer is Yes! Third party car insurance can save you from heavy fines!

What is the difference between first-party and third-party insurance?

The first party is the insured individual, that is you! Second-party is your insurance provider and the third party is the one who damages the car in an accident and has to pay for the insurance.

Can I get a claim for third-party insurance?

No! Third-party car insurance will not cover for the damage that is caused by yourself or the policyholder!

What is the cost for third party car insurance for 1500cc car?

Third-party car insurance in Dubai can cost you 1.25%- 3% of your car’s value!

What do I get from third party insurance?

Third-party insurance offers protection against damages to the third-party by the insured vehicle. It covers physical injuries, damages to the vehicle, damage to the property, and death. Third-party insurance does not provide any compensation, except the accident was caused due to drunken driving.

What is third-party car insurance in Dubai?

Third Party car Insurance is the basic Insurance requirement for all car owners in the UAE. Though they are affordable compared to Comprehensive Car Insurance and cover damages that your car has caused to a third party, it will not cover insurance for your car damages and personal damages.

Is third-party insurance enough for a car?

A third-party policy provides coverage only for third-party liabilities and nothing for damages sustained by the insured’s car and their personal damages; it is not considered an ideal car insurance cover.

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    Originally published Jul 20, 2020 03:22:15 AM, updated May 13, 2024

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