Types of Car Insurance in Sharjah

Car insurance

Wondering whether you should opt for Third Party Liability (TPL) or comprehensive insurance coverage? You have to consider multiple factors such as the extent of coverage and premium while making this decision. This handy guide by ServiceMarket will help you find the most suitable car insurance in Sharjah.

Third Party Liability (TPL) insurance coverage

It is mandatory to have at least TPL insurance coverage in the UAE, and it’s the cheapest and most basic car insurance policy. This type of insurance only covers the damage done to the other car and passengers, but it doesn’t cover damage or loss to your own vehicle. The benefit of going for this type of insurance is that you will pay the lowest premiums but the downside is that you will have to pay for your own repairs in case the accident was caused by you.

Comprehensive insurance coverage

Comprehensive car insurance is not mandatory by law in the UAE. But if you’re getting a car loan, it is highly likely that the bank will insist that you should have comprehensive car insurance coverage. This type of insurance also covers loss due to theft or fire and its coverage extents to both your and the third party’s vehicle. Comprehensive insurance is more expensive than TPL insurance but it’s the recommended type of insurance since it even covers your car when the accident was caused by you.


Depending on your needs, driving habits and lifestyle, you can extend your car insurance coverage by signing up for add-ons. The common ones include off-road coverage, roadside assistance, dealership repair, and GCC coverage. These services will cost you extra but you don’t want to in any situations where you aren’t covered. .


Your premium is determined by the make and model of you vehicle, your age, the type of insurance you sign up for, as well as the add-ons you include in your policy. For example, TLP insurance coverage would cost you around AED 1,138 for a 2017 Nissan Sunny 1.5L Sedan, whereas if you opt for comprehensive insurance coverage you’d have to pay around AED 2,426. Keep in mind that comparison shopping can help you save a lot of money and select the most suitable car insurance policy. You can easily compare insurance quotes on ServiceMarket.