Some of the most frequent questions our readers ask us to address are those related to rental or hire car insurance types, and how a person should consider them. While it may seem a bit confusing at first, arranging insurance for a rental car is much simpler than you first thought. And we’re always here to help!
Types of Rental Car Insurance
If you have recently approached a rental car company, you were probably offered different types of insurance suitable for a rental car. These covers are there to minimise the risk rental car companies are exposed to and hold customers accountable for their own accidents while the vehicle is in their custody. Below are the most common types of covers for rental car insurance:
Collision Damage Waiver (CDW)
This cover protects you from having to pay for any collision damage to the rental car while it is in your custody. Under the terms of this cover, the rental car company will waive their right to make you pay the costs of fixing the damages as long as you pay the excess of the claim stated within the contract.
This is the most common and recommended rental car insurance coverage. If you want to learn more about it and whether it’s advisable to buy one, check our previous blog: Is purchasing collision damage waiver insurance advisable?
Personal Accident Insurance
This cover protects you and other passengers travelling with you in the rental vehicle against any medical costs resulting from an accident you might find yourself in.
Although this seems like a cover worth buying in theory, you need to consider whether you already have decent medical insurance coverage that would eliminate the need for this cover. Additionally, if you’re a visitor to the UAE and renting a car abroad, your travel insurance might provide coverage. Be sure always to check the “small print” of any document to ensure you are fully covered. While it might not seem worth spending a few more dirhams on insurance, it may be necessary to save you thousands.
Personal Effects Coverage
This might be compulsory for specific types of business in some emirates: Dubai’s Federal Law, for example, mandates companies to purchase such insurance to cover their liability towards any damage or injuries sustained by/to their employees as a result of a work-related incident and to provide them with compensation and/or salary payment accordingly.
Professional Indemnity Insurance
This cover protects your personal belongings in case they are stolen from or damaged in the rental car and up to a specified limit. And as mentioned above, it’s worth checking if you are protected against such incidents by your travel insurance or your home insurance: especially since many home insurance policies can cover your most valuable belongings worldwide! To learn more, check out our previous blog: What Are the Main Coverages Under a Home Insurance Policy?
Our Verdict: Should You Purchase Insurance for a Rental or Hire Car?
In general, however, we believe it’s advisable to be protected against various risks when driving a rental or hired car. However, before spending a few hundred dirhams on covers you may already have, we recommend consulting an insurance expert to obtain an evaluation, taking into account the various insurance policies you have and your specific needs. And we know just the place!
At InsuranceMarket.ae, our team of expert insurance advisors are willing to go above and beyond to make sure you have the best cover for your needs,z and you get the best value for your money. Give them a try today!
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