Third Party Commercial Vehicle Insurance Price in UAE

When using vehicles for work purposes, third-party commercial vehicle insurance is a legal requirement in the UAE. Before buying this policy, however, it’s important to understand the third party commercial vehicle insurance price and what affects it. To help you make the right decision, we’ve highlighted the key factors that influence the cost. Keep on reading to learn more!

What is Third Party Commercial Vehicle Insurance? 

Third-party commercial motor insurance is the basic requirement to drive your vehicle on the UAE roads. It financially covers the liabilities that your business may incur if your vehicle damages third-party property, individual, or vehicles.

However, it’s worth mentioning that this type of insurance doesn’t cover the cost of repairing your own vehicle after an accident. For this reason, it is best suited for old, low-value, or high-usage commercial vehicles where affordability is the priority.

What Affects Third Party Commercial Vehicle Insurance Price in the UAE?

Several factors influence the commercial vehicle third-party insurance premiums — understanding these helps you plan your business budget efficiently. Here are the key factors that you need to consider while choosing TP commercial motor insurance —

Type of the Vehicle

Different types of vehicles affect the insurance premium differently. Here’s how —

• Light commercial vehicles, like vans and pickups, usually have lower premiums
• Heavy vehicles, trucks, and passenger-carrying vehicles generally attract higher third-party commercial vehicle insurance rates due to their higher liability exposure

The vehicle’s size, weight, and seating capacity also directly impact the premium.

Vehicle Usage

How you use a vehicle for your business significantly affects the cost of commercial motor insurance. For instance, heavy vehicles used for construction, logistics, or transportation generally cost higher premiums. This is because they face greater accident risks and can cause higher financial losses.

Driver Profile

Insurers assess the drivers’ profiles and accident histories to determine the level of risk. If the registered drivers are inexperienced or have a record of frequent accidents, the premium is likely to be higher. In many cases, their age also affects the overall third-party commercial vehicle insurance cost.

Claim History

Commercial auto insurance companies often reward a claim-free record with lower premiums or renewal discounts. However, a history of multiple claims can significantly increase the prices. For this reason, it’s advisable to file claims only for major damages and avoid raising them for minor issues whenever possible.

Geographical Location

Commercial vehicle third party insurance rates may vary as per the Emirate where your vehicle operates. For instance, you may find different prices in Dubai and Sharjah. Traffic density, accident frequency, commercial activity, and the number of claims reported in an area all influence premiums. If you operate a business in a location with heavier traffic or higher claim records, you may face high premiums.

How to Save on Third Party Commercial Vehicle Insurance Premium with Policybazaar.ae?

Policybazaar.ae helps you find the best price for third party commercial vehicle insurance online in the UAE. Here’s how this platform helps in getting the right coverage within your budget:

✔ Leading Insurers

We are associated with the UAE’s most reputable insurance companies. This way, you get trustworthy options at the right price for total peace of mind.

✔ Compare Multiple Quotes

You can find multiple insurers with different premium options in one place. This feature allows you to compare them seamlessly and secure the ideal coverage at the best rate.

✔ Expert’s Assistance

Seeing a variety of options to choose from, you might get confused. This is where our experts will guide you. You can get expert assistance in choosing the right plan as per your business needs.

✔ No Hidden Surprises

We’re committed to delivering fully transparent business insurance solutions. What you see is exactly what you pay — no hidden charges, no surprises. You can count on us for honest pricing and clear, reliable service.

Summing Up

Third party commercial vehicle insurance price in UAE varies among different insurers, as the premium is determined by various factors. Some of the key factors include vehicle type, usage, driver history, and location. While 3rd party coverage is the most affordable mandatory option, it's crucial to get it from the right provider.

With Policybazaar.ae, you can compare the best plans from multiple insurers and their premiums, choose the best plan, and get affordable commercial vehicle third party insurance premiums without hassle.

Frequently Asked Questions