Third Party Car Insurance

Third party car insurance is the most basic motor insurance cover you can buy. It protects you financially if your car causes injury, death or property damage to someone else — but it does not cover damage to your own vehicle.

Third party insurance Premiums on Policybazaar.ae start from AED 630 per year*, making it one of the more affordable ways to stay covered. You can compare car insurance plans in UAE from multiple insurers in one place and check liability limits, claim support and optional benefits before choosing.

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?

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.

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.

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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