If you own a car and drive it in the UAE, having a valid car insurance policy is not only a good idea—it's the law. However, everyone doesn't need a fully comprehensive policy. That's where third party car insurance in the UAE fits into the picture. It's the cheapest legal option and frequently best for individuals driving older cars or watching their finances.

In this guide, we clarify what third party insurance is, what it will cover, what is required by law in the UAE, how much you can expect to pay, and who gives the best value in 2025.

What Is Third Party Car Insurance?

Third party vehicle insurance is the minimum required to drive a vehicle in the UAE. It covers you in case of financial loss if you cause damage to someone else's car, property, or person in the event of an accident. However, it pays out nothing if you damage your car or injure yourself.

This type of insurance is typically suitable for:

Individuals with old or cheap cars

Individuals with limited budgets

Occasional drivers

Used vehicles for regular short trips

By covering only third-party risks, the policy remains economical and meets legal road criteria.

Is Third Party Car Insurance Mandatory in the UAE? Yes, third party motor insurance is mandatory to register or renew any motor vehicle in any of the UAE emirates, i.e., Dubai, Abu Dhabi, and Sharjah.

The UAE Road Traffic Law mandates third party insurance on all vehicles. This guarantees that, in case of an accident, the hurt party is compensated for their loss. Driving without proper insurance is a serious offense and your car cannot be registered otherwise.

What Does Third Party Insurance Cover?

Third party insurance usually covers the following:

Damage to another person's property or vehicle because of you

Third-party death or injury in an accident you are responsible for

Accidental legal aftermath

What it doesn't cover are:

Damage to your car

Damage to yourself or your passengers Vehicle theft or loss through fire Acts of nature, off-road driving, or acts of vandalism

If you want additional cover—personal accident, breakdown, or fire and theft—you'll need to purchase add-ons or take out a comprehensive policy.

Third Party and Comprehensive Car Insurance

The biggest difference is that the third party insurance covers other people only, while comprehensive insurance covers you in addition to other people involved in an accident. Comprehensive policies give added cover on your own vehicle, including accidental damage, theft, acts of nature, and personal accident cover.

However, comprehensive insurance is typically more expensive. Vehicle owners with old vehicles, or individuals who simply want to cover their bases at a lower cost, third party cover is typically sufficient.

Cost of Third Party Car Insurance in the UAE

The cost of third party cover in the UAE may vary depending on different factors such as:

The engine size and make of your vehicle

Your driving record and age

The emirate in which your car is registered

Your car's usage (personal or commercial)

For 2025, the following are UAE average third party insurance prices:

Small cars and hatchbacks: AED 600 to 900

4x4s and SUVs: AED 900 to 1,300

Commercial: AED 1,000 and above

Premiums are higher for new or young drivers, luxury vehicles, and those who have made accident claims before.

To get the best price, it is better to compare multiple prices online on trustable websites like Shory.

Best Third Party Car Insurance Companies in the UAE (2025) While choosing third party insurance, caution should be exercised in using a reliable and licensed insurer. Here are some of the best insurers in the UAE offering competitive third party plans:

Shory

A popular online site for instant comparison of third party insurance quotes from approved insurers. Renowned for hassle-free online experience and rapid issue of policy.

Salama Islamic Arab Insurance Offers Shariah-compliant third party insurance with competitive prices. Excellent customer service and image in the UAE market.

Orient Insurance

Part of the Al-Futtaim Group, Orient provides standard and comprehensive third party policies. Offers broad access to garages and good claims settlement.

Adamjee Insurance

Known for offering low-budget third party insurance most appropriate for older vehicles or fleet management.

Al Sagr National Insurance

Offer affordable and legally binding third party policies. Known for protecting fundamental liabilities and offering quick online services.

Make sure you read through the terms of every policy. Some providers offer additional add-ons like personal accident cover or 24/7 roadside assistance at a very small extra price.

Can You Upgrade Third Party Insurance Later?

Yes, most UAE insurers allow you to switch to comprehensive cover from third party after a while into your policy. If the value of your car increases, or if you use your vehicle more regularly, you may want broader cover.

Check with your provider for upgrade policies. Some will upgrade for a pro-rated fee or a new vehicle check. It's also time to negotiate the new prices or look out for bundle packages.

How to Buy Third Party Car Insurance Online in the UAE It's simple, fast, and most likely cheaper than visiting offices. Here's how it's done:

Visit a good comparison website like Shory.com

Input your Emirates ID, vehicle information, and driving history

Compare quotes from certified insurers

Choose a third party plan that matches your budget

Pay online securely

Receive your electronic policy instantly

All the insurance providers listed on Shory and other websites are certified by the Central Bank of the UAE. Always obtain a valid policy that is ideal for your registration needs.

Who Should Purchase Third Party Insurance?

Third party insurance is ideal for:

Drivers of older or worn-out vehicles

Those who drive short distances or occasionally

Thrifty car owners

Those wanting to meet the minimum requirement by law

In the event that your vehicle is over five years of age or worthless on the used market, third party insurance may be the most affordable option.

Conclusion

Third party car insurance in the UAE is not just mandatory by law—it's a good financial choice for the majority of drivers. It allows you to drive legally and protects others against your possible liability.

While the full policy offers greater cover, the third party policies are very affordable and work well for most drivers. Assuming you drive carefully and maintain your vehicle in good shape, a third party cover is all you may need.

Be sure to browse around, compare prices, and read the small print before deciding. With services such as Shory, it is simpler than ever before to get the best third party insurance in the UAE.