Let us assist you in figuring out if your insurance policy covers a replacement car, and whether you should include this cover on your next car insurance policy

This is a common question so let us assure you, you are not the first person to wonder about this. We’d like to tell you there is no black or white here:  simply a policy that we need to dig deeper into: but don’t worry, with these hints and tips you’ll be on the road to making the right decision for you!

So you thought about renting a car for a road trip on the long weekend but the website asked if you want to add insurance for your rental car for an extra amount. Confused with the question, you think back about the comprehensive car insurance you bought for your own vehicle and wonder if (and secretly pray!) it covers your rental car. Well, let’s try and help you figure that out.

The Common Situation

When it comes to car insurance, most comprehensive policies don’t cover you for a rental car, and the ones that do, only protect you against Third Party Liability, meaning you probably need to think about the different kinds of rental car insurance you can get. UAE legislation mandates all Rental Cars to have a basic Third Party Liability insurance and include its cost in the daily rental rate. So with the legal requirements taken care of, you might still want to protect yourself against any nasty surprises like a big damage invoice for any “own fault” incidents whilst the vehicle is being rented to you.

Additional covers you should consider

With that in mind, you can still get an extra level of security by opting to take out one of the different types of comprehensive rental car insurance. We’ll highlight below what each one covers and what is essential for you to be on the safe side in case the unexpected happens.

Collision Damage Waiver (CDW)

This means that if any damage is caused to the car whilst under your hire, the rental car company will waive their rights of making you pay for the damages, but might still make you pay their excess on the claim.

Personal Accident Insurance

Covers you and the passengers in the rental car against any medical costs arising from an accident.

Personal Effects Coverage

Covers you if any of your personal belongings get stolen from the rental car up to a specified limit.

Deciding which cover to choose for your rental car might not be an easy decision, so take your time and do your research. You might want to consider asking some friends about their rental experiences and which plan they were grateful to have or wished they had purchased: or contact one of the friendly Advisors at InsuranceMarket.ae: we’d love to answer any questions you might have and wish you safe travels.

About Author

Rachel Al Mughairi

About Author

With over 34 years in the international insurance industry in a variety of senior management roles, and as holder of the Diploma in Insurance from the Chartered Insurance Institute, Rachel surely knows her insurance! With experience in London, continental Europe and the Middle East, Rachel is here to share her knowledge and help you understand more about insurance products in this easy-to-understand series of videos and blogs.