Third Party Car Insurance in the UAE – All You Need to Know
These days, it is quite easy to own a car. With a lot of financing options and so many brands to select from, owning a car has never been easier. However, by now, many of you would have come to realize it is the other expenses which make owning a vehicle quite tricky and expensive. For example, the volatile fuel prices are one expense. Paying for your insurance is another.
Together, these costs can balloon up to a lot. It can offset your budget. On top of it all, if you miss a payment on your insurance, it can affect your credit score. Apart from this, you will have to pay the overdue payment charges as well. Now, imagine that you get into an accident. Unfortunately, the fault is your own.
Apart from getting your car repaired, you will be required to pay for the repairs to the other person’s vehicle. These are all expenses which every person dread. But accidents are a part of life. No matter how carefully you drive, accidents can happen. However, what you can do is manage the risk and transfer it to another party.
What PitStopArabia means is to get car insurance which covers not only your damages but also the damages to the third party. Keep reading this article to know more about it in detail. But before we do that, there is a need to inform you about the types of insurance policies.
Types of Car Insurance Policies
Instead of getting into unnecessary detail, there are two types of insurance policies.
Comprehensive Insurance Policy
It is a policy which covers damages to your car, personal injuries, and vehicle theft. Apart from it, it also covers damage to the other vehicle(s), property, and person(s) involved in the mishap.
Third-Party Insurance Policy
In this policy, all loss to the third party is covered. The loss includes death, injury, damage to the vehicle or property. However, in this type of policy, any damage to yourself or your vehicle is not covered.
Which Type of Policy Do You Need?
At times, people get quite confused while selecting the insurance type. There is no doubt that it is quite confusing and also requires a lot of consideration as it involves quite a lot of money. Many people prefer a comprehensive policy. It is more expensive than third-party insurance. However, in the long run, it does prove to be cheaper.
Third-party is not preferred by many as it does not cover the damages to your vehicle and yourself. In case of a mishap, there is no doubt that your car will sustain damage and you might get injured yourself.
Final Thoughts
This concludes today's article. We hope that you now understand the different types of car insurance. We recommend visiting different car insurance providers to get the best possible rates. Also, it is better to look at your finances before selecting a package. It will help you avoid financial crunch and a dent in your credit score.