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When it comes to insurance, it is very important to know what kind of insurance you are looking for and that depends on your needs and budget. There are two main policy types to choose from, third party or comprehensive cover. It should be noted that in the UAE, third party is mandatory for all drivers by law. However, what are the differences, benefits and drawbacks of each?

Third Party: This type of insurance covers any damages caused by you to another vehicle. This means that in the case of an accident caused by you, your insurance will cover damages to the other person’s vehicle. However, any damage caused to your own vehicle will not be covered and will have to be paid out of pocket. 

Comprehensive Cover: This type of insurance offers complete coverage regardless of whether you caused the accident or not. As such, this type of policy is more expensive.

Before taking a decision on which type of insurance you want, it is important to look at the overall frequency of accidents in the UAE. If you have lived in the country for a long time, you already know all too well that the roads are dangerous and accidents are common. Even with speeding cameras, many motorists, especially younger ones, enjoy speeding and this poses a potential threat to your vehicle and theirs. As such, the safest policy is comprehensive cover. Despite the extra cost, you can rest assured that your insurance plan will cover unforeseen costs, even if the accident was not your fault. This plan however, only applies to cars less than 7 years old. If it’s the case that your vehicle is older than that, you will be required to opt for third party insurance. 

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Like any insurance plan, you will have to consider what to include/exclude. 

  • 24/7 accident and recovery services?
  • Legal liability in the case of accidents?
  • Jumpstart or tow in case of breakdown?
  • Passenger coverage?
  • Personal injury coverage for the driver?
  • Geographical reach? (UAE or GCC region?)
  • Desert driving?

When it comes to repairing your car, there are two main plans to choose from:

Agency: Allows your car to be repaired at the authorized manufacturer’s workshop. (Normally available up to 5 years)

Non-agency: Allows you to take your vehicle to any authorized garages and do subsequent repairs there. 


Is there any excess that needs to be paid in case of a claim? Usually, policies that have larger excess payments have lower premiums and vice versa.

No-Claim Discounts:

If you haven’t made a claim with a previous insurer, you can provide a no-claim certificate to your new insurance provider and qualify for a discount. This shows that you are a safe driver and will likely result in lower costs for your insurance plan. 

Check your health insurance:

In the case of an accident, whilst motor insurance can cover damages to your vehicle, any long term injuries will fall upon your health insurance plan. As such, it is imperative that you check that your health insurance plan covers any injuries of that sort. Check out our health insurance plans here:

Compare Plans:

In order to find the best motor insurance plan, it is crucial to compare a variety of plans to save the most money and find the most applicable solution. You can check out our car insurance offers here!

Brian Habibi