How Much Does Third-Party Motor Insurance Cost in Pakistan (2026 Guide)

February 23, 2026

When it comes to protecting your vehicle in Pakistan, third-party motor insurance is a legal requirement for all car and bike owners. But many people wonder, “How much will it cost?” or “What factors affect third-party insurance premiums?” In this guide, we’ll break down the latest 2026 rates, explain the cost factors, and clarify the difference between third-party and comprehensive insurance. Whether you drive a car, a bike, or own a commercial vehicle, this article will give you a clear picture of what to expect—and why choosing the right insurer matters.

What Is Third-Party Motor Insurance?

Third-party motor insurance is a type of policy that covers damages or injuries caused to other people or their property in the event of an accident. Unlike comprehensive insurance, it does not cover damages to your own vehicle. Despite this limitation, it is mandatory under Pakistani law, and skipping it can lead to fines, license suspension, or legal issues in case of an accident.

The main benefit of third-party insurance is affordability. It provides a safety net for liabilities while keeping your premium relatively low.

Factors That Affect Third-Party Insurance Cost in Pakistan

The cost of third-party insurance in Pakistan is not fixed. Several variables influence how much you pay:

1. Engine Size

Engine size is one of the biggest determinants of cost. Vehicles with larger engines are often associated with higher risk due to their power and potential to cause more damage.

Cars under 1000cc generally have the lowest third-party premiums.
Cars between 1000cc – 1800cc see moderate rates.
Cars above 1800cc are considered high-risk, resulting in higher premiums.

Motorcycles follow a similar pattern. Bikes with engines above 150cc usually incur higher premiums than smaller 70–125cc bikes.

2. Vehicle Type

Your vehicle type directly impacts your premium:

Private cars – Premiums vary by engine size, model, and city.
Motorcycles – Rates are lower than cars but still depend on engine capacity.
Commercial vehicles – Trucks, buses, and vans usually have higher premiums because they carry goods or passengers, increasing liability.

3. City Risk Factor

The city where your vehicle is registered also matters. Urban areas like Karachi, Lahore, and Islamabad are considered higher-risk due to traffic density and accident rates. Rural cities often enjoy slightly lower premiums.

Third-Party Insurance Rates in Pakistan (2026)

Below is an overview of approximate third-party motor insurance costs in Pakistan for 2026. Keep in mind that these rates are subject to minor adjustments by different insurers:

Vehicle Type	Engine Size / Category	Approx. Annual Premium (PKR)
Private Car	≤1000cc	1,500 – 3,000
Private Car	1000cc – 1800cc	3,000 – 5,000
Private Car	>1800cc	5,000 – 8,000
Motorbike	≤125cc	500 – 1,000
Motorbike	126cc – 150cc	1,000 – 1,500
Commercial Vehicle	Small (van/pickup)	5,000 – 8,000
Commercial Vehicle	Large (bus/truck)	8,000 – 15,000

These costs are base premiums. Additional factors such as previous claims, no-claim bonus, or insurer policies may slightly adjust your final premium.

Difference Between Third-Party and Comprehensive Insurance

Understanding the difference between third-party insurance and comprehensive insurance is essential before purchasing a policy:

Feature	Third-Party Insurance	Comprehensive Insurance
Covers damage to your vehicle	❌ No	✅ Yes
Covers damage to others	✅ Yes	✅ Yes
Premium cost	Low	High
Legal requirement	Mandatory	Optional

Many vehicle owners are tempted to choose cheaper third-party insurance, assuming it offers weaker protection. In reality, a properly structured third-party policy covers all legal liabilities effectively, making it a safe, affordable choice.

Why Cheaper Doesn’t Mean Weaker Protection

A common misconception is that low-cost third-party insurance compromises your safety or legal protection. The truth is that all third-party policies approved by the Securities and Exchange Commission of Pakistan (SECP) meet the minimum legal liability requirements.

What varies between insurers is usually:

Claim settlement speed
Customer service quality
Optional add-ons (like personal accident coverage)

By choosing a reputable company like United Insurance, you can enjoy competitive premiums without compromising your legal coverage or claim support.

Bike, Car & Commercial Vehicle Cost Comparison

Bikes – Third-party premiums are the most affordable, especially for engines under 125cc.
Cars – Premiums increase with engine size, city risk, and car model.
Commercial Vehicles – Due to higher liability, these vehicles attract higher premiums.

By understanding these differences, you can make an informed decision when budgeting for your vehicle insurance.

FAQs About Third-Party Motor Insurance Costs in Pakistan

1. How much is third-party insurance for a small car in Pakistan?
For cars under 1000cc, third-party premiums usually range between PKR 1,500 – 3,000 per year depending on the city.

2. Does engine size affect bike insurance cost?
Yes. Bikes with larger engines (above 150cc) generally have higher premiums than smaller 70–125cc bikes.

3. Are commercial vehicle premiums higher than private cars?
Absolutely. Commercial vehicles carry higher liability risks, resulting in premiums ranging from PKR 5,000 – 15,000 annually depending on size and usage.

4. Is third-party insurance enough for legal compliance?
Yes. Third-party insurance meets the minimum legal requirement in Pakistan. However, if you want coverage for your own vehicle damages, a comprehensive policy is recommended.

5. Can I get a cheaper premium if I have no previous claims?
Yes. Many insurers, including United Insurance, offer a no-claim bonus, which can reduce your premium significantly if you maintain a clean accident record.

6. Why is insurance cheaper in rural areas?
Urban areas have higher traffic density, accident rates, and theft risk, which increases the insurance premium. Rural areas usually have lower risk, reducing the cost.

How to Save on Third-Party Motor Insurance

Compare multiple insurers before purchasing.
Opt for vehicles with smaller engine sizes if feasible.
Maintain a clean driving record to benefit from no-claim bonuses.
Choose a reputable insurer that balances cost and claim support.

At United Insurance, we provide competitive third-party premiums while ensuring fast claim settlement and excellent customer support.

Get Your Third-Party Insurance Today

Protect yourself, your vehicle, and others on the road with affordable third-party motor insurance from United Insurance. Our experts make it easy to get a quote instantly, compare options, and choose a policy that fits your budget and legal requirements.

Call us today or visit our website to secure your vehicle with Pakistan’s trusted insurance provider. Don’t wait until an accident happens—get your third-party motor insurance now!