Understanding the Inclusions and Exclusions of Third-Party Car Insurance

By knowing the inclusions and exclusions, however, you can avoid unexpected costs and make better insurance decisions. Whether you’re a new driver or renewing your policy, get a clear overview of what third-party car insurance actually covers in the UAE, and where it falls short, so you’re never caught off guard in the event of an accident or emergency.

Key Features of Third Party Car Insurance

3rd party car insurance in the UAE offers basic financial protection by covering damages or injuries that you cause to other people or their property while driving. This type of insurance, legally required for all vehicle owners, ensures that if you are at fault in an accident, the other party’s expenses are covered. However, it does not pay for repairs to your vehicle or your medical bills. 

Find below the key features of third party motor insurance —

• Mandatory by Law – Required for all vehicles in the UAE and regulated by the Central Bank of the UAE
• Lower Premiums – More affordable than comprehensive insurance due to its limited scope
• Basic Protection – Provides the minimum legal coverage needed to drive
• Widely Accessible – Offered by most insurance providers across the country
• Controlled Pricing – Premiums are regulated to maintain fairness and transparency
• Covers Legal Liability –  Includes damage to other vehicles or property, and injury or death of third-party individuals in an accident

What Does Third-Party Car Insurance Cover?

Third-party motor insurance in the UAE covers the following —

• Damage to Property – If your vehicle damages another car, a building, or other property, the insurance pays for the repair or replacement costs
• Injuries to Others – If someone is hurt because of an accident you caused, this insurance covers their medical bills, legal claims, and compensation (if needed)
• Legal Expenses – If the injured party takes legal action, your insurance may help pay for your legal defence costs

What is Not Covered under Third-Party Car Insurance?

While 3rd party car insurance in the UAE offers basic protection, it has several limitations, especially when dealing with natural disasters like heavy rain, floods, or hail. 

Let’s discuss the major limitations in more detail —

• Damage to Your Vehicle – Third-party insurance won’t pay for repairs if your car is damaged by natural events such as flooding, falling trees, or hailstorms. For this, you’ll need comprehensive motor insurance.
• Losses from Natural Disasters – Any damage to your vehicle caused by storms, floods, or similar events is not covered.
• Theft or Vandalism – If your vehicle is stolen or vandalised during or after a natural disaster, third-party insurance doesn’t cover it. For this, too, you will need comprehensive insurance.

What Should You Choose Between Comprehensive and Third-Party Car Insurance?

In the UAE, choosing between third-party and comprehensive car insurance depends on your needs and the value of your vehicle. Comprehensive insurance offers broader protection, covering damages to your own car from natural disasters like rain or floods, as well as theft, vandalism, and personal accident coverage. It also often includes extra benefits like roadside assistance and rental car support, especially useful during unpredictable weather. 

On the other hand, third-party insurance is a more budget-friendly option. However, since it only covers damages or injuries that you cause to others, it is more suitable if 

• Your vehicle has a low market value
• Your car is inexpensive to repair
• You're comfortable paying for your own damages\

On the whole, while third-party plans are cheaper, comprehensive insurance offers greater peace of mind and financial protection.

Frequently Asked Questions

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