What is Third-Party Car Insurance and Why is it Important in the UAE?

third party car insurance- motor insurance- auto insurance- Gargash Insurance 09 Feb, 2023

Discover the importance of third-party car insurance in the UAE. Learn about coverage, benefits, and why it's a crucial aspect of responsible vehicle ownership.

Benefits of Third Party Car Insurance

Third Party Car insurance is mandatory in UAE. It is the most basic and cost-effective car insurance policies. Driving a car on roads of UAE without a car insurance or with an expired car insurance is illegal.  

The increasing rate of road accidents is a major concern in UAE. Most accidents are events of mishaps caused due to reckless driving behaviour and disregard for road rules. Therefore, it is essential to have third-party car insurance. Third-party insurance provides coverage against accidental damage caused to a third-party vehicle, person or property by your vehicle. However, third-party insurance doesn’t offer coverage against any damage incurred by your car.


Quick Read Section

  • Third-party insurance provides cover against any accidental damage to the vehicle caused by a third party.
  • Third-party insurance can be categorised into liability coverage and property damage cover.
  • It covers any physical injury or loss of life to a third party.
  • Third-party insurance covers damage incurred by a third-party property caused by the policyholder.


Let’s discuss in depth what third-party insurance covers and how it can help you in case of accidental emergencies.


Why Should You Get a Third-Party Insurance Cover?

There are significant benefits to purchasing third-party car insurance. The premium for third-party insurance is lower when compared to comprehensive insurance. The premium rates may vary depending on the car model, vehicle variant, and driver’s age.

Below are the advantages you can avail of from third-party car insurance coverage.

  • It secures you against any liability resulting from damage to a third party person, vehicle or property in the event of an accident.
  • It insures you against unexpected financial burdens in case of accidents.
  • It can be availed at low premium rates.
  • It is mandatory in the UAE for car owners to have third-party insurance.
  • It offers comprehensive financial assistance and legal cover in case of third-party damage or loss.


What are the Add-Ons Offered by a Third-Party Insurance?

Generally, a third-party car insurance policy doesn’t offer many options for add-ons. However, depending on the company you choose as your third-party car insurance provider, you may come across options that allow you to acquire add-ons with the basic third-party insurance cover.

Some add-ons in a third-party insurance cover may include:

  • Personal accident coverage for drivers.
  • Personal accidental coverage for passengers.


What are the Inclusions in a Third-Party Car Insurance?

A third-party insurance policy essentially covers damages incurred to the third party due to an accident caused by an insured vehicle. These include injuries to drivers/passengers, property damage, and loss of life.


What are the Exclusions in a Third-Party Car Insurance?

There are several criteria that third-party car insurance doesn’t include. Here’s a list of exclusions in a third-party cover.

  • Replacement of a vehicle
  • Accidental/own damages incurred to the policyholder’s vehicle
  • Contractual liability
  • Damage incurred due to war-like events or nuclear risks
  • Accidental loss of life or injury incurred to the owner or the insured
  • No damage cover in case of driving without a licence
  • Injury or damage caused due to malicious intentions
  • Damage caused due to driving under psychotropic drugs or alcohol influence


Due to UAE law mandate and the increasing number of accidents on the road, every car owner should have third-party car insurance. Third-party liability insurance is the minimum and the most basic car insurance mandatory by law. It is the best fit for individuals who can’t afford to invest a sizeable amount in car insurance. In the event of an accident, third-party insurance covers damage caused to the third-party vehicle. It also offers cover against physical injuries to the third party involved in the case of an accident.

Buying car insurance with the help of a car insurance broker will help you choose the best premiums, renewability period, and claim settlements. Car insurance brokers assist you in designing insurance plans that suit your needs through their extensive research. Purchasing car insurance through a broker can also get you better premiums and will save you time.


Contact us today for all your car insurance needs.


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