Third Party vs Comprehensive Car Insurance Cover in Dubai

Posted by Rohan David on April 24th, 2019

Third Party vs Comprehensive Car Insurance Cover in Dubai

Motor insurance is obligatory in Dubai and elsewhere. It is binding on all vehicles, large and small, which intend to hit the road. You cannot ignore it just because your car is 10 years old. At least a third party cover is required to take your car onto the streets of Dubai.

A car insurance policy in Dubai can be divided into two broad categories: Third party insurance policy and Comprehensive insurance policy

A third party insurance policy is a type of insurance policy where the insurance protection is only given to a third person or property. This could be anybody or anything that gets affected in the event of an accident caused by your car. Whereas a comprehensive car insurance policy is package where your vehicle and the third party involved get the insurance protection.

Here are the most important differences between a third party insurance cover and a comprehensive insurance cover.

 

Third party

Comprehensive

Importance as per RTA

Mandatory

Optional

Coverage

Protection only for a third party

Protection for both third party and your car

Type of policy

Basic

No

Premium (cover for vandalism, natural calamities, etc. included)

Availability of discounts

No discounts available

Yes, based on competitive pricing you get discounts. Also No Claim Bonus, when not claimed for a specified term

Benefits

No benefits to the owner or co-passenger in the event of an accident. You have to pay from your pocket for car repairs

Yes. In case of an accident, your car repair and hospital bills will be compensated. Also any loss to the third party will be paid by the insurer

Add-ons

Limited add-on like coverage for fire and theft, depends of the insurer

Numerous, such as breakdown cover, Nil depreciation, etc.

Of course, price varies with both. A comprehensive insurance policy has a higher premium as the cost of third party is also added to it.

Choosing a car insurance needs a second thought. You might think that paying for a comprehensive cover is a foolish investment but considering the cost of repair, it is always wise to get a comprehensive cover. However, for a car which is over 8 or 9 years old choosing a third party is not a bad idea.

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Rohan David

About the Author

Rohan David
Joined: April 24th, 2019
Articles Posted: 1