Third-Party Car Insurance in the UAE: Complete 2026 Guide to Cheap & Legal Coverage

February 7, 2026

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7 February 2026| Dubai, UAE [Posted at 12:29 pm]

Third Party Car Insurance in the UAE remains the most widely purchased motor insurance option for good reason. It’s affordable, legally required, and ideal for drivers who want basic protection without paying premium prices. However, with rising vehicle repair costs, unpredictable weather, and increasing accident claims, understanding exactly what this policy covers (and what it doesn’t) has never been more important.

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What Is Third-Party Car Insurance in the UAE?

Overview: Third party car insurance is the minimum legal motor insurance required to drive on UAE roads.

Before getting into the fine print, it’s important to understand the basic purpose of this policy. Third party car insurance in the UAE protects you only if you cause damage or injury to others. It does not cover your own vehicle, injuries, or losses.

Why It’s Mandatory in the UAE

The UAE follows strict motor insurance laws to protect road users and property owners.

Third party insurance ensures:

Victims receive compensation
Drivers meet legal requirements
Financial disputes are minimised after accidents

Driving without valid car insurance in the UAE can result in:

Heavy fines
Vehicle impoundment
Black points on your license

What’s Covered Under Third-Party Car Insurance in the UAE?

Overview: While limited, third party coverage focuses on protecting others from financial loss caused by you.

Here’s what your policy typically includes.

Repairs to another vehicle
Damage to buildings, fences, or road infrastructure
Replacement costs if the property is beyond repair

Bodily Injury to Third Parties

Accidents can, unfortunately, lead to injuries. Your policy also covers:

Medical treatment costs
Hospital bills
Compensation awarded by the UAE courts
Disability or death compensation (as per UAE law)

This coverage prevents you from paying large repair bills out of pocket.

Legal Costs and Liability Claims

If a third party files a legal case against you, insurance support becomes critical.

Most policies include:

Legal defence expenses
Court fees
Lawyer costs (as per policy terms)

This ensures you’re not financially overwhelmed during legal proceedings.

What’s NOT Covered Under Third Party Car Insurance?

Overview: This is where many UAE drivers get caught off guard, especially during extreme weather or unexpected events.

Before buying cheap third party car insurance in the UAE, understand these exclusions clearly.

Damage to Your Own Vehicle

Your car is not protected under any circumstances.

This includes:

Accident damage
Scratches or dents
Total loss of your vehicle

You must pay all repair costs.

Natural Disaster Damage

Weather-related incidents are becoming more common in the UAE. Third party insurance does not cover:

Flood damage from heavy rain
Hailstorm dents
Falling trees or debris
Storm-related accidents affecting your car

This is one of the biggest limitations of third party car insurance in the UAE.

Personal Injuries to You or Passengers

If you or your passengers are injured:

Medical bills are not covered
Hospitalisation costs are excluded
Recovery expenses are your responsibility

Only comprehensive car insurance in the UAE offers personal accident coverage.

Theft or Vandalism

Your vehicle is unprotected against criminal acts.

Third party insurance does not cover:

Car theft
Break-ins
Deliberate damage
Fire caused by vandalism

Third Party vs Comprehensive Car Insurance in the UAE

Overview: Choosing between the two depends on your car’s value, risk tolerance, and driving habits.

Feature	Third Party Insurance	Comprehensive Insurance
Average Premium	AED 1,200	AED 3,500
Own Vehicle Damage	Not Covered	Covered
Natural Disasters	Not Covered	Covered
Theft & Fire	Not Covered	Covered
Personal Accident Cover	Not Covered	Included

Cheap Third Party Car Insurance in the UAE: What Does It Cost in 2026?

Overview: Affordability is the main reason drivers choose third party insurance.

Let’s break down typical pricing.

Average Premium Costs

In 2025–2026, the average cost is AED 1,000 to AED 1,300 per year.

Prices vary depending on:

Car age and engine size
Driving history
Insurance provider
No-claim discount eligibility

This makes third party insurance the cheapest legal option in the UAE.

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When Third Party Car Insurance Makes Sense

Overview: Despite its limitations, third party car insurance in the UAE is ideal for certain drivers.

Here’s the list of people who should choose Third Party Car Insurance in the UAE:

Older or low-value vehicles
Drivers on tight budgets
Cars nearing resale or scrap value
Minimal daily driving

If repairing your car costs less than a comprehensive premium, third party insurance is a logical choice.

Common Third Party Insurance Claim Scenarios

Overview: Real-life examples help clarify how claims actually work.

Scenario 1: Rear-End Collision

If you hit another car:

Their repair costs are covered
Their medical bills are covered
Your car repairs are not covered

Scenario 2: Parking Lot Scratch

You accidentally scratch another vehicle:

Their repainting cost is covered
Your scratch repair is your responsibility

Scenario 3: Heavy Rain Flood Damage

Your car floods during rainfall:

No claim allowed
Repairs paid entirely by you

This is a frequent UAE claim rejection scenario.

How to Choose the Right Third-Party Car Insurance in the UAE

Overview: Not all cheap policies are equal.

Step 1: Check Legal Compliance

Before buying:

Ensure GCC-approved coverage
Verify the UAE minimum liability limits
Confirm RTA and police acceptance

Step 2: Compare Multiple Quotes

Always compare at least three insurers.

Look for:

No-claim discounts
Higher deductibles for lower premiums
Good claim settlement reputation

Step 3: Read Coverage Terms Carefully

Before finalising:

Check liability limits
Confirm legal cost coverage
Understand claim exclusions

A clear policy saves time, money, and stress later.

FAQs: Third Party Car Insurance in the UAE

1. Is third party car insurance mandatory in the UAE?

Yes. It is the minimum legal requirement to drive in the UAE.

2. Does third party insurance cover flood damage?

No. Natural disasters are not covered.

3. Can I get cheap third party car insurance in the UAE?

Yes. Prices typically start around AED 1,000 per year, depending on vehicle and driver profile.

4. Does it cover passengers in my car?

No. Passenger injuries are excluded.

5. Is third party insurance enough for new cars?

Generally no. New or expensive cars should have comprehensive insurance.

Final Verdict

Third party car insurance in the UAE is affordable, legal, and suitable for basic protection, but it comes with serious limitations. If you drive an older car and want the cheapest legal option, it works well. However, if you value financial security, weather protection, and full peace of mind, upgrading to comprehensive car insurance in the UAE is a smarter long-term decision.