What is the difference between Comprehensive and Third Party Insurance?
Car insured is a legal requirement in the UAE, and insurance companies provide two types of insurance coverage, comprehensive insurance and third party insurance.
Comprehensive insurance covers both you and anyone else who might have been involved in an accident where you were at fault. This includes accidents without a third party, such as reversing into a pole and damaging the car.
However comprehensive insurance policies can vary, and lower priced options may have restrictions or clauses. Additional options on a comprehensive policy can include the use of a hire-car while your car is being repaired, or including coverage when travelling outside of the UAE. If you intend to take your vehicle off-road, be sure that this is specified in your policy, as some insurers will use this as an excuse to nullify a claim. Policies will also be voided if an accident is caused while under the influence of drugs or alcohol. This is in an addition to any legal repercussions you may face.
Third Party Insurance
Third party insurance is the minimum legal requirement in the UAE, it’s a more limited insurance option, and as a result more affordable.
In the case of an accident, third party insurance only covers the other person (third party) involved. If you were at fault, your medical and vehicle expenses will be not covered.
You would have to cover your own expenses out of pocket. Third party insurance policies can be supplemented with a fire and theft protection. That way if your vehicle is stolen, or is accidentally burnt, your insurance company will cover you for that property loss.
Third party insurance is fairly affordable and easy to obtain for most people. Comprehensive insurance becomes a lot more expensive, and some companies won’t cover vehicles over a certain age, or drivers that are very young. Finding a policy that suits you usually comes down to a matter of how much you’re willing to pay.