Third Party Car Insurance

This type of policy is usually cheaper than comprehensive insurance, which is why many drivers choose it for older or lower-value cars. Still, the cheapest option is not always the smartest one, so it is important to know what is covered, what is excluded, and when you may need extra coverage.

What Does Third Party Insurance Mean?

Quick Answer: What is Third Party Car Insurance in the UAE? Third party car insurance is the most basic motor insurance cover. It pays for damage or injury caused to someone else because of your insured vehicle. This can include damage to another car, damage to someone’s property, or bodily injury caused to a third party.

In car insurance, ‘third party’ simply means the other person affected by your car. It could be another driver, a passenger, a pedestrian, a shop owner, or anyone whose property gets damaged because of an accident involving your insured vehicle. Here is an easy way to understand it —

Party	Meaning
First party	You, the car owner or policyholder
Second party	The insurance company
Third party	The other person who suffers injury, death or property damage

So, third party insurance for a car is a policy that covers your legal liability towards that other person. For example, if your car hits another vehicle, your third party insurance can pay for the other vehicle’s repair. But it will not pay for your own car’s repair. This is why third party car insurance is often called a liability-only cover. It protects you against claims from others, not against losses to your own vehicle.

Is Third Party Car Insurance Mandatory in the UAE?

Yes, third party car insurance is mandatory in the UAE. You cannot legally drive or register a car without valid motor insurance in UAE. It is the minimum level of insurance required for vehicle owners.  You can choose a higher level of protection with comprehensive car insurance, but you cannot go below third party cover. So, if you are looking for a basic and budget-friendly policy, third party insurance is the starting point.

Third Party Car Insurance Premiums in the UAE

Third party motor insurance is usually the most affordable type of vehicle coverage in the UAE. On Policybazaar.ae, third party car insurance تأمين السيارات premiums start from AED 630 per year*, making it a practical option for those who want basic cover at a lower cost. You can compare third party car insurance plans on Policybazaar.ae and check quotes from multiple insurers in one place. This helps you choose a plan that fits your budget without missing important details like claim support, liability limits, and optional benefits.

*Premiums are indicative and may change as per insurer, vehicle details, driver profile, and chosen coverage

How Does Third Party Car Insurance Work? Simple Examples

Third party car insurance works when your insured car causes loss or damage to someone else. Your insurer handles the third-party claim as per the policy terms, limits, and exclusions.

Here are a few straightforward examples —

Example 1: You hit another car

You accidentally hit another car at a traffic signal:

1. The other car’s repair may be covered
2. Your own car’s repair will not be covered
3. You will need to pay for your own damage unless you have comprehensive insurance

Example 2: Your parked car damages another vehicle

Your parked car rolls back and hits another car:

1. The other car’s damage may be covered
2. Your own car’s damage will not be covered
3. The claim will depend on the police report and policy terms

Example 3: You damage someone’s property

You lose control and accidentally hit a shopfront, villa gate, wall, or roadside pole:

1. Third party insurance may cover the damage caused to that property
2. Your own car damage will not be covered
3. The insurer will check the accident report and claim documents before processing it

Example 4: A permitted driver causes an accident

Someone drives your car with your permission and causes an accident:

1. The third-party loss may be covered
2. The driver should have a valid UAE driving license for that vehicle category
3. If the driver is not legally allowed to drive, the insurer may reject the claim or recover the paid amount later

What is Covered Under Third Party Car Insurance UAE?

Third party car insurance mainly covers the loss or damage caused to another person due to your insured vehicle. The cover usually applies when your car causes injury, death, or property damage to a third party.

What is Covered in Third-Party Insurance	What it Means	Example
Third-party property damage	Damage caused to someone else’s car, building, shop, wall, fence, or other property	You hit another car at a traffic signal and damage its bumper
Third-party bodily injury	Physical injury caused to another person due to an accident involving your insured car	Your car injures a pedestrian or another driver
Third-party death liability	Compensation linked to death caused to a third party in an accident	A serious accident leads to loss of life
Damage caused while using the vehicle	Accidents that happen while the car is being driven, moved, parked, or used	Your parked car rolls and hits another vehicle
Liability of a permitted driver	Cover may apply when someone else drives your car with your permission, as long as they hold a valid license for that vehicle category	Your spouse drives your car and causes damage to another vehicle

What is Not Covered Under Third Party Car Insurance?

Third party motor insurance does not cover your own losses. It only covers the loss caused to another person or their property because of your insured vehicle.

Here are the common things not covered under a basic third party car insurance policy —

Not Covered in Third Party Insurance	What it Means
Damage to your own car	If your car is damaged in an accident caused by you, the repair cost is not covered
Theft of your car	If your car is stolen, third party insurance will not pay for it
Fire damage to your car	Damage due to fire is not covered unless you have a wider cover or add-on
Natural disaster damage	Damage due to flood, storm, rain, or other natural events is not covered under basic third party cover
Personal belongings	Items kept inside your car, such as laptop, phone, bag, or sunglasses, are not covered
Own windscreen or tyre damage	Damage to your own windscreen, tyres, or parts is not covered
Personal injury to driver	Injury to the driver is not usually covered unless a personal accident add-on is included
Passenger injury add-on	Passenger cover may need to be added separately, depending on the policy
Off-road damage	Damage while driving off-road is not covered unless the policy clearly includes it
Agency repair for your car	Since your own car damage is not covered, agency repair is not included

Example of 3rd Party Car Insurance — 

You hit another car in Sharjah. The other car’s door is damaged and your front bumper is also broken. Your third party insurance can help cover the other car’s repair, but you will have to pay for your own bumper repair.

Add-ons You Can Consider With Third Party Car Insurance

Basic third party car insurance gives limited protection. It covers your liability towards others, but it may not cover you, your passengers, or your car. This is why some insurers offer add-ons at an extra cost. You can check for these add-ons before buying —

1. Personal accident cover for driver — Helps cover injury or death of the driver, as per policy terms
2. Personal accident cover for passengers — Gives extra financial protection for passengers travelling in the insured car
3. Roadside assistance — Useful if your car breaks down, gets a flat tyre, has a battery issue, or needs towing
4. Oman extension — Helpful if you drive from the UAE to Oman and want cover across the border
5. Rent-a-car or courtesy car benefit — Some insurers may offer a temporary replacement car or cash benefit while the car is under repair
6. Natural disaster cover — Some plans may offer extra protection for flood, storm, or similar events

Quick Tip - Do not add every benefit without checking. Pick the ones that match how you drive. For example, if you drive daily or travel long distances, roadside assistance can be useful. If you often travel with family, personal accident cover for passengers may be worth checking.

Third Party Insurance vs Comprehensive Car Insurance

Both third party insurance and comprehensive insurance cover you on the road, but they work very differently. 

Feature	Third Party Car Insurance	Comprehensive Car Insurance
Basic purpose	Covers your liability towards others	Covers third-party liability and your own car damage
Legal requirement	Meets the minimum insurance requirement	Also meets the legal requirement
Damage to another car	Covered	Covered
Injury to a third party	Covered	Covered
Damage to your own car	Not covered	Covered, subject to policy terms
Theft of your car	Not covered	Usually covered
Fire damage to your car	Not covered	Usually covered
Natural disaster damage	Not covered under basic third party cover	May be covered, depending on the policy
Premium	Usually cheaper	Usually higher

Which One Should You Choose?

Choose third party insurance if your car is old or has a low market value, or you only want basic cover at a lower price. Choose comprehensive insurance if your car is new, expensive, financed, or costly to repair. It may cost more, but it gives better peace of mind because your own car is also protected.

Who Should Buy Third Party Car Insurance in the UAE?

Third party car insurance is a good choice for individuals who want basic cover at a lower cost. It works best when the car is not very expensive to repair or replace. You can consider third party insurance if:

1. Your car is old and has a low resale value
2. You want the minimum required motor insurance
3. You don’t drive the car very often
4. You are comfortable paying for your own car repairs
5. You want a budget-friendly policy for basic road protection

However, third party insurance may not be the right choice for every driver/car owner. It may not be suitable if:

1. Your car is new
2. Your car is expensive or luxury
3. Your repair costs are usually high
4. Your car is financed by a bank
5. You drive daily in busy areas
6. You want cover for theft, fire, flood, or own damage

Top Insurers Offering Third Party Car Insurance in the UAE

Some popular insurers you can compare include —

1. Sukoon Insurance
2. GIG Gulf
3. RAK Insurance
4. Orient Insurance
5. Al Wathba National Insurance
6. Dubai National Insurance & Reinsurance
7. Insurance House
8. Adamjee Insurance

Cheapest Third Party Car Insurance in the UAE: What Affects the Price?

Third party car insurance is usually cheaper than comprehensive insurance because it does not cover your own car damage. Still, the price can change from one driver to another. The cost may depend on —

1. Car make and model — Some cars cost more to insure because of higher repair costs, engine size, or claim history
2. Vehicle age — Older cars are often insured under third party cover, but premiums can still vary
3. Driver’s age — Young or new drivers may get higher quotes
4. Driving experience — More driving experience can sometimes help you get a better premium
5. Claims history — A clean record may help reduce the cost
6. Emirate of registration — The price may differ for cars registered in Dubai, Abu Dhabi, Sharjah, or other emirates
7. Add-ons selected — Extra covers like roadside assistance or personal accident cover can increase the final price

Should You Choose the Cheapest Third Party Car Insurance in Dubai? The cheapest third party car insurance in the UAE is not always the best option. Before buying, check — The third-party property damage limit Claim process Insurer’s service quality Exclusions Optional benefits Roadside assistance, if available A low premium is useful, but a smooth claim experience is more important when an accident actually happens.

Best Third Party Insurance for Car: How to Choose the Right Plan?

The best third party insurance for a car is not always the cheapest one. A good policy should give you the right liability cover, clear terms, and simple claim support. Before buying a plan, check —

1. Third-party property damage limit — See how much the insurer will pay if your car damages another vehicle or someone’s property
2. Bodily injury cover — Check how the policy handles injury or death caused to a third party
3. Claim process — A good insurer should have a clear and easy claim process
4. Garage network — Check if the insurer has a wide approved garage network
5. Roadside assistance — Some third party plans offer it as an add-on or benefit
6. Personal accident cover — You may be able to add cover for the driver and passengers
7. Policy exclusions — Read what is not covered before buying
8. Customer support — Choose an insurer that is easy to reach during emergencies
9. Premium vs benefits — Do not compare only the price; compare what you get for that price

Quick Tip! - If two plans have almost the same premium, choose the one with better claim support, higher liability limits, and useful add-ons. A cheap policy can save money today, but a weak claim process can create problems later.

Documents Required to Buy Third Party Car Insurance in the UAE

To buy third party car insurance in the UAE, you need to share basic personal, driving, and vehicle details. The exact list can change slightly from one insurer to another, but most insurers ask for the following —

• Emirates ID - Used to verify your identity and UAE residency details
• UAE driving license - Required to check whether you are legally allowed to drive the vehicle category you want to insure
• Vehicle registration card or Mulkiya - This has important vehicle details like registration number, chassis number, engine number, make, model, and year
• Previous insurance policy - Usually needed at the time of renewal or when switching from one insurer to another
• No-claims certificate - If you have not made claims in previous years, this may help you get a better premium
• Vehicle inspection report - This may be required if the policy has expired, the car is old, or the insurer asks for it before issuing cover
• Car purchase documents - For a newly bought used car, you may need a sale agreement, transfer documents, or other vehicle ownership proof

Documents Required for Car Insurance in UAE

How to Claim Third Party Insurance After an Accident?

If you meet with an accident in the UAE, do not leave the spot without reporting it. Even a small accident usually needs an official accident report before the insurance claim can move ahead. Here’s what you should do —

1. Move to a safe place, if possible - If the car can be moved and there is no serious injury, shift it away from traffic.
2. Check if anyone is injured - If there is injury, call emergency services immediately.
3. Report the accident - Contact the police or use the approved accident reporting service in that emirate. You will need an official accident report for the claim.
4. Inform the insurer - Call your insurance company or submit the claim online, depending on the insurer’s process.
5. Share the required documents - Usually, you may need the accident report, driving licence, Emirates ID, vehicle registration card, and insurance policy copy.
6. Follow the claim instructions - The insurer will guide you on the next step. If you are the third party affected in the accident, the at-fault driver’s insurer may handle your claim.
7. Wait for the claim assessment - The insurer may inspect the vehicle, check the police report, review liability, and then process the repair or compensation.

Quick Tip - Don’t repair the vehicle before the insurance process starts, unless the insurer or authority tells you to. Repairs done without approval may create problems during claim settlement.

Third Party Claim Rights in the UAE: What Can the Injured Party Do?

If another driver damages your car or property, you become the third party in the claim. This means you can raise a claim against the at-fault driver’s insurance company. Here’s what you can usually do —

• Collect the accident report: The police report or approved accident report will mention who was at fault. This is the most important document for the claim.
• Contact the at-fault driver’s insurer: Once you have the report, you can approach the insurance company of the driver who caused the accident.
• Submit your documents: You may need your Emirates ID, driving license, vehicle registration card, accident report, and photos of the damage.
• Get the vehicle inspected: The insurer may ask you to visit an approved garage or assessment centre.
• Wait for repair approval or compensation: The insurer will review the documents and check the damage. It’ll then process the claim as per policy terms.
• Ask for updates: Keep your motor insurance claim number safe and follow up with the insurer if there is a delay.

Replacement Car or Loss of Benefit in Third Party Claims

In some third party claims, the injured person may get a replacement car or a cash amount for the period their car is under repair. This is usually called loss of benefit or substitute vehicle allowance. This benefit is not for the driver who caused the accident. It is mainly for the third party whose car was damaged because of someone else’s mistake. Here’s how it may work —

1. If your car is damaged by another driver: You can file a third party claim with the at-fault driver’s insurer
2. If your car needs repairs: The insurer may arrange a replacement car or pay a daily allowance, depending on the policy terms
3. If your car is not usable: This benefit can help you manage your daily travel while your car is being repaired
4. If the insurer offers cash instead of a car: The amount and number of days will depend on the policy wording and claim approval
5. If the repair takes longer: The approved benefit may still have a maximum limit, so check the policy terms

Simple Example - Your car is hit by another driver in Abu Dhabi and the accident report shows that the other driver is at fault. Your car needs 7 days of repairs. In this case, the at-fault driver’s insurer may provide a replacement car or a cash allowance for the approved repair period, subject to the policy terms.

How Do Depreciation and New Parts Work in Third Party Claims?

In a third party claim, the insurer’s job is to bring the damaged vehicle back to its pre-accident condition. This can be done through repair, replacement of damaged parts, cash settlement, or total loss settlement, depending on the case. But there is one important point many car owners miss: depreciation.

Depreciation may apply when the injured third party asks for new parts instead of the damaged used parts. In that case, the injured third party may have to bear the depreciation percentage as per the policy schedule.

How Does it Usually Work?

1. If the vehicle is less than one year old, damaged parts are generally replaced with new original parts without depreciation deduction for the injured third party.
2. If the vehicle is older than one year, the insurer may repair it at a suitable repair shop based on the car’s type and year of manufacture.
3. The damaged parts may be replaced with parts of the same standard.
4. If the injured third party specifically asks for brand-new parts, depreciation may apply.
5. Some safety-related parts may need to be replaced with new ones without depreciation deduction. This depends on the policy schedule.

Sources

1. Central Bank of the UAE / Unified Motor Vehicle Insurance Policy Against Third Party Liability
2. Policy wordings of major insurers: Sukoon, Al Wathba, RAK Insurance, Dubai National Insurance, Insurance House, Adamjee, and more
3. Official insurer pages where needed

Top UAE Third Party Car Insurance
GiG Gulf 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
Liva Third Party Car Insurance	Abu Dhabi National Takaful Third Party Insurance
Watania Takaful Third Party Car Insurance	Al Sagr Third Party Car Insurance
Oriental Third Party Car Insurance	Salama Third Party Car Insurance
New India Assurance Third Party Car Insurance	Alliance Third Party Car Insurance
RAK Third Party Car Insurance	Orient Third Party Car Insurance
Tokio Marine Third Party Car Insurance	Adamjee Third Party Car Insurance
AFNIC Third Party Car Insurance	DIC Third Party Car Insurance
Insurance House Third Party Car Insurance

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