Liability Car Insurance in the UAE is a legal requirement that protects drivers from covering third-party injury, property damage, or traffic fines following an accident. With over 70% of UAE drivers prioritizing cost-effective coverage, this policy ensures compliance with RTA regulations while shielding your finances. This guide breaks down its coverage and costs, explaining why skipping it risks hefty penalties in a region where even minor collisions can lead to significant expenses. Whether you’re a new driver or just renewing your plan, this guide is your roadmap to making smarter insurance decisions.
What is Liability Car Insurance in the UAE?
Liability Car Insurance is a policy that covers expenses if you’re responsible for an accident, paying for third-party injuries, vehicle damage, or property loss you cause.
In the UAE, it works as a financial safety net: when an accident occurs, your insurer compensates affected parties for repairs, medical bills, or legal fees, as long as you follow RTA guidelines (like filing a police report first).
This coverage is legally required for all drivers and is mandatory in all emirates in the UAE; skipping it risks fines up to 500 AED, black points, or vehicle confiscation. Unlike full coverage car insurance in the UAE (which protects your car from accidents, theft, or natural disasters), liability insurance only covers costs you owe to others.
Types of Car Insurance in the UAE
In the UAE, drivers typically choose between two central Car Insurance policies, which are popular: Third-Party Liability Insurance and Comprehensive Insurance. There are different types of car insurance in UAE, which are explained in other articles. Here we try to compare third-party and comprehensive. Understanding their differences ensures you pick the right protection for your needs and budget.
Third-Party Liability Car Insurance in UAE
- Covers: Damage to others’ vehicles/property, injuries to third parties, and legal liabilities under UAE law.
- Doesn’t Cover: Repairs to your car after an accident, personal injuries, theft, or natural disasters like earthquakes, drowning, floods, etc.
This is the minimum legal requirement for all drivers, mandated by the RTA (Roads and Transport Authority).
Comprehensive Car Insurance in UAE
- Covers: All third-party liabilities plus damage to your own vehicle (accidents, fire, vandalism, theft).
- Extras: Comprehensive car insurance may include perks like 24/7 roadside assistance, agency repairs, and coverage for floods or sandstorms.
Third-Party vs. Comprehensive: Quick Comparison
| Factor | Third-Party | Comprehensive |
| Coverage | Others’ damages only | Others’ + your own damages |
| Cost | Affordable (AED 800–1,500/year) | Higher (AED 2,000–5,000+/year) |
| Ideal For | Older cars, tight budgets | New cars, financed vehicles, luxury models |
What Does Liability Insurance Typically Cover in the UAE?
Liability Car Insurance in UAE protects you from financial fallout if you’re at fault in an accident. Here’s what it covers and where it draws the line:
- Damage to Third-Party Vehicles or Property: Repairs for cars (not your own), buildings, or infrastructure (e.g., lampposts, barriers) damaged in an accident you cause.
- Injury or Death of Third Parties: Medical bills, hospitalization, or compensation for affected drivers, passengers, or pedestrians.
- Legal Expenses: Court fees, lawyer costs, or fines if the accident leads to a lawsuit under UAE traffic laws.
Limits & Exceptions:
- Coverage caps vary by policy (e.g., 2M AED for injuries, 500k AED for property damage).
- Excludes intentional damage, DUIs, or driving without a valid UAE license.
- Does not cover your car repairs, personal injuries, or natural disasters like floods or in a worst-case scenario, if you pass away, there will be no compensation for your family.
Note: To be more secure, try bundling life insurance with your car insurance. Read more about Comprehensive vs Third Party Insurance.
Top Insurance Companies Offering Liability Car Insurance in the UAE
Choosing the right insurer ensures seamless claims and reliable support. Here are the UAE’s top providers for Liability Car Insurance:
Salama Insurance
A market leader known for affordable premiums and fast claims processing, it is also popular for its RTA-approved policies and 24/7 customer support, ideal for budget-conscious drivers seeking car insurance in UAE.
Orient Insurance
One of the UAE’s oldest insurers, offering flexible liability plans with optional add-ons like roadside assistance. Trusted for its transparent terms and extensive network of repair centers.
AXA (Now GIG Gulf)
Renowned for digital-first services, GIG Gulf (formerly AXA) lets you manage policies via its app, file claims online, and access perks like agency repairs. Ideal for tech-savvy drivers.
Adamjee
A go-to for high-risk drivers or those with a history of claims, Adamjee offers tailored liability policies with competitive rates. Their strength lies in specialized underwriting for challenging cases, ensuring even drivers with spotty records stay road-legal with liability car insurance.
Tokio Marine
Known for lightning-fast claims and multilingual customer support, Tokio Marine prioritizes hassle-free experiences. Their liability plans include perks like free towing services and upfront accident compensation, ideal for expats seeking reliability.
Union Insurance
Perfect for cross-border drivers, Union’s liability coverage extends across GCC countries. They also offer add-ons like personal accident cover for passengers, blending affordability with regional flexibility.
RSA Insurance
Expertise in modified or classic cars, covering custom parts and vintage models, is often excluded elsewhere, with comprehensive coverage car insurance in the UAE.
Oman Insurance
Top choice for commercial vehicles, with fleet liability plans and bulk discounts for businesses. Discover the Top Car Insurance Companies in Dubai.
How Much Does Liability Car Insurance Cost in the UAE?
Liability Car Insurance in UAE typically costs between AED 800 to AED 2,500 annually, depending on your profile and vehicle. While cheaper than comprehensive plans, your final premium hinges on these factors:
1. Driver’s Age & History
Drivers under 25 or with past accidents/tickets pay up to 30% more.
Clean records and older drivers (30+) often secure the lowest rates.
2. Car Type & Value
Luxury cars (e.g., Range Rover) or high-performance models cost more to insure.
Older, low-value sedans (e.g., Toyota Yaris) attract minimal premiums.
3. Insurance Company
Budget insurers like Salama offer rates as low as AED 800.
Premium providers (e.g., Tokio Marine) may charge up to AED 2,500 for enhanced liability caps. Read more What Factors Affect the Cost of Car Insurance in the UAE?
Why Third-Party Is Cheaper Than Comprehensive?
Liability Insurance only covers damage you cause to others, making it 60–70% cheaper than comprehensive policies (which also protect your own car). For example, insuring a Ford Mustang might cost AED 1,200 for third-party vs. AED 3,500+ for full coverage.
How to Choose the Right Liability Insurance Policy
Not all Liability Car Insurance policies are created equal. To secure the best value and protection in the UAE, follow these steps:
- Check RTA Compliance: Ensure the insurer is approved by the UAE’s Road Transport Authority (RTA) to avoid legal hiccups.
- Compare Reviews: Look for providers like Salama or Orient Insurance praised for fast claims and transparency.
- Assess Financial Stability: Opt for insurers with high claim settlement ratios (e.g., Tokio Marine, GIG Gulf).
Next step: Know What to Look for in a Policy
- Coverage Limits: UAE liability policies often cap payouts (e.g., AED 2M for injuries, AED 500K for property). Choose higher limits if you drive luxury cars or in busy areas like Dubai Marina.
- Claim Process: Prioritize insurers with 24/7 support, digital claim filing, and direct repair network access.
- Customer Service: Multilingual hotlines and app-based management (e.g., AXA/GIG Gulf) save time for expats.
Final Step: Know what you’re signing!
Learn these phrases before finalising your policy.
- Exclusions: Most policies void coverage for DUIs, off-road accidents, or unlicensed driving.
- Excess Fees: You may pay AED 500–1,000 out of pocket per claim, depending on the insurer.
- Renewal Terms: Watch for hidden auto-renewal clauses or price hikes after claims.
Pro Tip: Use comparison sites to weigh costs and coverage side-by-side. Read more about How Does Car Insurance Work.
Drive Legally and Smart with Liability Car Insurance
In a country where Ferraris share lanes with Ford F-150s, Liability Car Insurance isn’t just a legal formality; it’s your financial seatbelt on the UAE’s high-speed roads. Skipping it risks fines, impounded vehicles, and crippling out-of-pocket costs for accidents you cause.
But don’t stop there: revisit your policy yearly to adjust coverage limits, account for life changes (like a new car or address), and hunt for better deals. Insurers like Salama or GIG Gulf often update terms, and loyalty doesn’t always pay.
And remember, before committing, compare providers rigorously. Use online aggregator platforms to weigh costs, claim turnaround times, and customer reviews. Buckle up, compare wisely, and hit the road protected.
Frequently Answered Questions
What is liability insurance in UAE?
Liability Car Insurance covers costs if you’re at fault in an accident, such as repairing others’ vehicles, medical bills for injuries, and legal fees. It’s mandatory for all UAE drivers.
What are the two types of car insurance in the UAE?
Third-Party Liability Insurance (covers others’ damages) and Comprehensive Insurance (covers others + your own vehicle).
How much is car insurance in UAE?
Third-party: AED 800–2,500/year; Comprehensive: AED 2,000–7,000+/year. Costs vary by driver age, car model, and the company of car insurance in UAE.
Which car insurance is best in the UAE?
GIG Gulf (AXA), Salama, and Orient Insurance top the list for affordability, digital services, and fast claims. Compare based on your needs.
Is car insurance mandatory in UAE?
Yes. At least Third-Party Liability Insurance is legally required. Driving without it risks fines, black points, or vehicle impoundment.
Which car company is best in UAE?
Toyota and Nissan dominate for reliability and resale value, while luxury brands like Mercedes-Benz and BMW lead in premium segments. For off-road performance, Ford (F-150) and Chevrolet (Tahoe) are UAE favorites. The “best” depends on your needs.
