Difference between Comprehensive Insurance & Third-Party Insurance

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The quest to find the best car insurance coverage for you can be a bit lengthy and may require some thorough research but in the end, it is all worth it. Several factors plays very important role when you are choosing your car insurance and one of them includes choosing the type of insurance cover. Insurance companies in UAE offer two basic kinds of vehicle insurances – comprehensive car insurance and third-party insurance. Both these insurance types have their individual benefits but they also have several differences. As an aware customer, it is important that you have a basic understanding of both.

What is Comprehensive Car Insurance?

A comprehensive car insurance plan is meant to provide full coverage to both the insured and the third party in case of an accident. From damages incurred by the vehicles to medical bills of the third party and the insured, almost everything is covered by a comprehensive car insurance policy, hence the name. On top of accidental insurance cover, comprehensive car insurance  also covers theft, complete loss of the vehicle, fire, natural disasters, vandalism, civil disturbances like riots, and some add-on services like engine cover, accessories cover, zero depreciation, etc.

Although car insurance and vehicle insurance is mandated by law in the UAE, it does not make comprehensive can insurance a compulsion, However, being the most thorough insurance available out there, comprehensive insurance is often recommended and preferred by most vehicle owners out there.

 

Comprehensive Car Insurance Let’s Understand with an Example

To understand the coverage umbrella of a comprehensive car insurance plan better, let us see an example. Say you have parked your car out in a street. A tornado happens to hit overnight and the raging rains happen to destroy the car in the process. Even when it is nobody’s fault that the car has been destroyed and requires extensive repairs to be of use again, the insurance company will cover the full cost of the damaged car, minus the deductible to be paid by the insured.

Another example can be an accident. You were driving and your car collided with another and damages are incurred by both the vehicles. Even if you happen to be at fault for the accident, your insurance company will cover all costs of damage repairs and medical bills for both you and the third party if they make a claim.

Benefits of Comprehensive Car Insurance

  • Undoubtedly, comprehensive car insurance is the highest and the best level of insurance that you can get for your vehicles.
  • It will cover not only your personal medical damages and damages incurred by the vehicle but also any third-party damage claims.
  • Along with that, lawsuits and legal fees against you are also covered here.
  • All-natural and man-made disasters are also fully covered under comprehensive insurance.
  • The IDV or the Insured Declared Value of your car can be chosen freely by you in the case of comprehensive car insurance. It is the amount that the insurance company will pay in case of loss or complete damage to the car. Although, higher the IDV, higher the premium.

Buy Car Insurance & Avoid Fine

Top UAE Comprehensive Car Insurance
Axa Comprehensive Car Insurance New India Assurance Comprehensive Car Insuranc
ADNIC Comprehensive Car Insurance RAK Comprehensive Car Insurance
Sukoon Comprehensive Car Insurance Tokio Marine Comprehensive Car Insurance
RSA Comprehensive Car Insurance Adamjee Comprehensive Car Insurance
Noor Takaful Comprehensive Car Insurance AFNIC Comprehensive Car Insurance
Oriental Comprehensive Car Insurance Al Wathba Comprehensive Car Insurance
Salama Comprehensive Car Insurance Union Comprehensive Car Insurance

Comprehensive Car Insurance Policy Coverage in UAE

  • Inclusion

  • Exclusion

  • Damages incurred to you in an accident (vehicles + personal)
  • Damages incurred to a third party (vehicles + personal + property)
  • Natural Calamities like floods, tornados, landslides, earthquakes, etc.
  • Man-made disasters like riots, strikes, terrorism, fire, vandalism, etc.
  • Theft of the car.
  • Third-party claims or liability – includes the lawsuits and legal fees.
  • Mechanical expenses to upkeep the wear and tear of the vehicles.
  • Engine protector cover.
  • Roadside assistance for jump starts, tire changes, etc. in case of roadside emergencies.
  • Extended Accident Cover that will include passengers, and paid drivers as well.
  • Tire protection cover.
  • Consumable cover.
  • No Claim Bonus Protection cover.
  • Damages incurred when using the vehicle for illegal activities.
  • Damages incurred when using the vehicle after its due usage limit.
  • Damages incurred during the war, nuclear accidents, etc.
  • Accidents caused when driving under influence of drugs or alcohol.
  • The invalid license of the driver or under-age drive.
  • Damages caused by the owner, wilfully.
  • Damages caused due to negligence or improper upkeep of vehicles.

Third Party Car Insurance

Third-party car insurance will offer full coverage in the event of liability to a third party for the damages caused by your vehicle due to your fault. It is mandatory to have at least third-party car insurance in the UAE for all cars. Third-party liability insurance would cover any damages incurred by the vehicles of the third party as well as their own medical bills in case they have sustained injuries. One thing to note here is that your own car is not covered for damage under this type of insurance plan and neither are your own injuries.

Let’s Try to Understand What Third Party Insurance Cover in a Better Way

Let us see an example to get a better understanding of third-party coverage. You are driving on a highway and happen to meet an accident while overtaking. Your car as well as the car you collided with have suffered damages along. You and the other driver are also injured. You being at fault, your insurance company will cover for the damages caused to the third-party vehicle and injuries caused to the third-party itself. However, the damages caused to your vehicle will not be covered and neither will your own medical bill.

Another example here can be natural disasters, theft, and fire. If your car happens to be damaged during a natural disaster or a man-made disaster like riots, terrorism attacks, etc. or gets stolen, the insurance company will not cover for the loss of your car or the damages.

Benefits of Third-Party Insurance

  • Security from Legal Liabilities is the biggest pro of third-party car insurance. Even when at fault, it is not necessary that the insured person causes the accident knowingly. Having to pay hefty legal claims from third-party can be a huge burden. This type of insurance cover will save you that trouble.
  • Third-party car insurance plans are cost-effective protection against damages. Since the cover umbrella is smaller, the premiums and deductibles are also lesser.
  • Third-party insurance is a great fall-back option when your car is not brand new anymore and you can afford to pay the self-repair charges yourself.

Compare Car Insurance Plans

Top UAE Third Party Car Insurance
Axa Third Party Car Insurance Al Wathba Third Party Car Insurance
ADNIC Third Party Car Insurance Union Third Party Car Insurance
Sukoon Third Party Car Insurance Qatar Third Party Car Insurance
RSA Third Party Car Insurance AFNIC Third Party Car Insurance
Noor Takaful Third Party Car Insurance Al Sagr Third Party Car Insurance
Oriental Third Party Car Insurance Adamjee Third Party Car Insurance
New India Assurance Third Party Car Insurance Alliance Third Party Car Insurance
RAK Third Party Car Insurance Aman Third Party Car Insurance
Tokio Marine Third Party Car Insurance  

Third Party Car Insurance Coverage in UAE

  • Inclusion

  • Exclusion

  • Damages incurred by third-party vehicle
  • Medical bills of injuries sustained by the third-party driver
  • Legal claims made by the third party
  • Any damage incurred by the car of the insured during accidents and by natural or man-made disasters
  • Theft or complete loss of the vehicle of the insured
  • Loss of car accessories of the insured
  • Medical bills of the insured due to the accident
  • Passengers or paid drivers for the car of the insured

FAQ's

Q1. Why is buying comprehensive car insurance a smarter choice?

Ans. A comprehensive cover will give your vehicle all-round protection against all unforeseen accidents and calamities. The add-on services can even help in claiming the original value of the vehicle at the time of total loss or theft of the car. In short, a comprehensive plan is fool-proof protection for your vehicle against all damages and liabilities that come your way.

Q2. Can I switch from a third-party policy to a comprehensive policy on renewal?

Ans. Yes, you can easily switch to comprehensive car insurance from a third-party insurance plan upon renewal. The process is pretty much the same as buying a new policy from your provider too. Just locate the application form on the website of the provider and fill up the necessary details to start the process.

Q3. Why is comprehensive car insurance more expensive than third-party policy?

Ans. Simply because of the benefits that it offers. Comprehensive insurance covers your vehicle in event of damages caused by almost any means including accidents (insured and third party both), theft, loss, man-made disasters, etc. Since the risk is higher for the insurer in the case of comprehensive cover, it is more expensive than the third party which covers only out of all the factors that comprehensive plans cover.

Q4. What are the best add-on covers for a comprehensive car insurance policy?

Ans. Following add-ons can be considered when buying a comprehensive car insurance cover:

  • No Depreciation Cover: Covers the cost of depreciation and helps in getting a higher claim amount in case of total loss or damage.

  • Engine Protection Cover: Protects loss or damages incurred by the engine.

  • Roadside Assistance Cover: Comes in handy for 24x7 roadside assistance and services in case of emergency

  • Return to Invoice Cover: Helps in obtaining the invoice value of the car in event of total loss or damage.

  • No Claim Bonus Cover: keeps you eligible for no claim bonus even if you apply for a claim

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