Car Insurance
Car Insurance

What is Third Party Insurance?

There are many factors to consider while purchasing Car Insurance.

The coverage you get for what you pay is the most important. Buzzwords like ‘third party’ are often misunderstood. So, let’s clear up the confusion and talk about what third party insurance really is.

Comprehensive insurance policy

First let’s understand what comprehensive coverage is, because third party is a component of this. Comprehensive means complete protection for your vehicle during accidents or other mishaps. It provides coverage for the damages to your car, other vehicles involved, theft and injuries to yourself.

Third party insurance

Third-party liability covers you against death or bodily injury to any third party/person and damages to third party property arising out of the use of your motor vehicle. More importantly, this policy does not cover any damage or loss to your own vehicle. Third party is the minimum mandatory cover in Dubai, and it doesn’t provide coverage to your vehicle if it is damaged or stolen.

Implications of third party only

An accident which causes injury or damage can create financial implications, although comprehensive is often more expensive, better coverage can save you money in the long run.  

So, comprehensive or third party, Car Insurance is crucial for your vehicle. Car insurance provides the adequate financial aid in the event of an unforeseen accident. It’s better to be safe than sorry.