Why is Third-Party Car Insurance Beneficial?

Getting car insurance in the UAE is mandatory and every car owner should have their vehicles insured. While getting car insurance it is important to note the different types of car insurance provided in the market and get the right one. The two different types of car insurance are; Comprehensive Car Insurance & Third-Party Car Insurance. 

Comprehensive Car Insurance - A comprehensive insurance is something that provides financial coverage that happened to your vehicle or passengers during an accident, theft, fire, etc. 

Third-Party Car Insurance - While third-party car insurance provides financial coverage for the damages caused by your vehicle to the third-party vehicle. And according to the RTA UAE, it is mandatory for every vehicle owner to have third-party coverage car insurance. 

Working of Third-Party Car Insurance

Third-Party Car Insurance provides financial security in the case of any damages caused to other vehicles on the road by your vehicle. It covers factors like damages done to the vehicle, any injuries for the passengers in the vehicle, hospital charges, temporary or permanent disabilities, or even death during the mishap. The third-party insurer will come to your rescue with financial assistance. 

What is covered in Third-Party Car Insurance?

While buying third-party car insurance, you must check what would be covered in the insurance policy. As the insurance policy does not cover everything, it would be shocking to find it out at the time of need. Here are some basic factors that third-party insurance policies cover. 

• Damages to the third party - If there are any damages caused to the third-party passengers, driver in the vehicle, financial coverage is provided. The insurance provider will provide compensation for hospital bills on any injuries, temporary or permanent disabilities. 
• Damages to the third-party vehicle - If there are damages caused to the third-party vehicle by your insured vehicle, the repair costs are reimbursed by the insurer. 
• Personal accident cover - Some of the insurance providers offer a personal accident cover for the policyholder. 

Apart from this, the specifications on the reimbursement depend upon the insurance provider. The policyholder must provide legal and valid proof of the accident and damages caused to get the reimbursement. 

Benefits of Third-Party Car Insurance

Though third-party car insurance can secure someone else financially, there are certain advantages for the car insurance holder as well. 

• Abide by the Law - Third-party car insurance will let you abide by the law set by the government officials that it is compulsory to have third-party coverage if you are driving a vehicle in the UAE. 
• Simple & Easy - The purchase of third-party car insurance is simpler and easy than comprehensive car insurance. You can simply pick a plan and complete the purchase. 
• Peace of mind - Having third-party car insurance gives you peace of mind as you’ll be financially secured in the case of any mishappenings. You don’t have to spend anything from your pocket or break your savings to cover the damages financially.  

Exclusions of Third-Party Car Insurance

Though the working of third-party car insurance is simple, there are certain factors that are not covered in the third-party cover, like, 

• Damages caused to your own vehicle 
• If the driver of the vehicle is driving in the influence of substances 
• If the driver does not possess a valid driving licence in the UAE 
• If the proof of the accident is not satisfied 
• If the driver was driving against the speed limit 
• Intentional damages caused to the third-party vehicle 

Takeaway

Some of the insurance providers in the UAE offer third-party coverage on the comprehensive car insurance policy which makes it simple for the insurance buyer and need not get two separate covers. It is necessary to go through the policy once and understand the coverage options before buying the policy as it is mandatory to have third-party coverage in the UAE and driving the vehicle with only comprehensive car insurance without third-party coverage is illegal and fine of AED 500, 4 black points on the licence and the vehicle will be seized for 7 days.