Owing to the rapid growth, insurance companies in the UAE provide comprehensive and bespoke insurance plans according to customers’ needs. Today, individuals are not only able to secure their life but also their belongings. After health and life insurances, car insurances in UAE are one of the most popular protection plans. Vehicle/car insurance is a contract between the vehicle owner and the insurer wherein the insurance company secures the vehicle against loss or damage due to accidents. It also provides cover for the driver and passengers in case of life loss or disability during accidents.
Buying a new car in the UAE also brings the responsibility of following the transport regulations and laws in the UAE. As a vehicle owner, the first and foremost compulsion for you is to get insurance for your car. And the most basic insurance or specifically compulsory plan is third-party motor insurance.
Those not well versed with car insurance may find the first and third party car insurance confusing. Let’s find out various parties involved in car insurance in UAE and how car insurance work for them.
Unlike life and health insurance, where two members are involved, car insurance involves three parties. The details of various involved parties in car insurance in UAE are as follows -
Before getting your new vehicle out on the road, you need to have compulsory insurance ready. And prior to that, you need to know the various car insurance in the UAE to choose the best insurance for your car as per your needs. The Road Transport Authority of UAE has made it mandatory for all vehicles to have third party insurance in UAE. Details of different car insurances are given below.
It is also known as first-party motor insurance. Comprehensive car insurance secures the owner and the insured vehicle from losses due to accidents even if the vehicle is not on road. As the name suggests, comprehensive car insurance provides complete protection to your vehicle from unforeseen events such as fire and allied perils, theft, vandalism, etc. The insurer is liable to pay for the losses incurred during accidents. Apart from that, comprehensive insurance also provides personal accidents cover to the first party. If the driver or the passenger suffers from a total or partial disability, death, etc., the insurance company pays for the losses.
Comprehensive car insurance also comes with a variety of additional riders. Vehicle owners can avail of added protections by paying a higher premium. A few additional riders available for the car owners are engine protection, roadside assistance, repair expenses, etc.
Third-party car insurance protects uninsured individuals who are affected by an accident due to the insured vehicle. The third party can also file a claim settlement directly with the insurance company. The second party or the insurer is liable to pay for the third party losses such as injury, death or property damage, etc. by the insured vehicle.
For example - You hit another car while driving on a foggy road. In such a case, you are responsible to pay for the losses incurred to the victim. However, with third-party car insurance, your insurer will compensate for the third party damages/losses when they file a claim settlement.
As per the UAE Road Transport Authority, third-party car insurance in UAE is mandatory for all running vehicles.
Major differences between the first-party and third-party insurances are tabulated below -
First-Party Car Insurance
Third-Party Car Insurance
First-party insurance provides comprehensive protection to your vehicle. Whether your car is on the road or parked, your insurance provider would compensate for the losses/damages.
Major Inclusions of First-Party Car Insurance in the UAE
Major Exclusions of First-Party Insurance in the UAE
Every car owner needs to buy third-party car insurance in UAE before hitting the road. The third-party car insurance consists of the following inclusions and exclusions.
Major Inclusions of Third-Party Car Insurance in the UAE
Major Exclusions of Third-Party Car Insurance in UAE
As third-party car insurance is mandatory by the UAE transport law, you don’t have an option not to choose it. If you want comprehensive protection for yourself, your passengers and the vehicle, you should opt for first-party car insurance. In addition to that, the first-party car insurance also comes up with numerous add-ons and customisations, making it a better choice for your complete protection on the road.
Driving on the road can be very unpredictable. Individuals need to have car insurance for their own security. They may consider their insurance requirement while buying the best car insurance in uae as per their needs. To have basic coverage, they can opt for third-party car insurance. If they wish to avail of complete protection for their vehicle and passengers, they should buy a comprehensive insurance plan in the UAE.