What Happens if I Don’t Have Third Party Damage Cover in Car Insurance?

18 Jul, 2021

Third-party car insurance is the minimum cover required by UAE law, is affordable, covers the bare minimum, and provides injury cover. What happens, however, when not insured with a third-party insurance plan?

A third party insurance cover is a form of car protection that primarily covers damages and losses done to a third party’s property or the other person involved, and not necessarily the policy holder’s.

A third party car insurance cover is the minimum requirement mandatory as per regulations of the UAE and is the minimum coverage required for your car. As such, it covers damage done to the other party’s vehicle yet damages to the policyholder’s vehicle will not be covered. So you can provide car cover for other parties involved in an accident and not your damages.


What exactly does a third-party car insurance plan cover?


Third-party car insurance cover

Covers in the event(s)


Property Damage

Covers damage to only third party vehicle

Injury Cover

Covers to injuries to the third party


Why should you get a third party insurance cover?

Given that a third party car insurance cover is mostly single-fold, why should you opt for one compared to other car coverage plans in the market?

  • It is the more affordable option

Compared to other car insurance coverages, a third party car insurance cover is most affordable and usually budget-friendly, especially for those that cannot afford higher coverage and premiums.

  • It covers injuries for both parties involved, should the need arise

In case of an accident, injuries sustained to either party will be covered in third party car insurance. Although property damages or losses will only be covered for the third or other party involved, cover for injuries will be inclusive of both the policyholder and third party.                                                            

  • It is safe for you (your pocket) and others on the highway

In the unfortunate event of an accident, if you are unable to pay for all the damages done to properties from your pocket, the third-party insurance coverage will aid in assistance to cover for the third party involved. This way, the third party should not have to suffer the loss of property damage, nor you from bearing such expenses.

  • Sense of security

Third-party car cover also provides a sense of security for those on the highway, as this prevents them from the losses of property damage and money in an accident they did not cause. It works as a guarantee for owners of cars in an accident that brought damages to their property.

  • It is the minimum coverage required by law

Since third-party car insurance is the minimum car coverage available, it is made the basic coverage required by law in the UAE. So it is convenient for owners of cars to cover with the bare minimum within premium ranges they can afford.


Consequences of not having a third party car insurance cover

Since third party insurance can be affordable, convenient, functional and is the minimum cover required, the owner of a vehicle can be penalized by law if found without the possession of one. The said owner will also be held liable in the case of the following:                                                                                                       

  • Firstly, not being insured with a third party or minimum insurance cover, will result in a fine of up to AED 500, penalization of 4 black points according to the Dubai black point system and confiscation of your car for a week. The fine could be a financial strain and the confiscation of your car may be an inconvenient setback.
  • Secondly, if you caused an accident driving an uninsured vehicle, you will be asked to pay for all the damages done. This includes both third-party property damage as well as your own. If insuring with third party car insurance may seem expensive, the overwhelming costs of all property damages in the event of an accident may surely outweigh the premium you pay for the insurance.
  • Thirdly, causing an accident that injures pedestrians can result in a penalty. This could prove a strain on your pocket, and in the unfortunate case of a death, you will be asked to pay blood money to the victim’s family worth AED 200,000 or an amount the court sees fit.


In the UAE, traffic violations are treated as a serious offence and violations committed without valid car insurance is even more so. As such, third-party insurance cover is widely known for its affordability and is the minimum car insurance cover required by UAE law. This is because it acts as a protection and guarantee in the unexpected event of an accident, and ensures that no party is inconvenienced.

It is therefore recommended to ensure car protection with at least the minimum cover possible, for safety and protection for you and others on the highway.

To find the right car insurance policy that fulfils your requirements, please get in touch us today


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