Read this blog to make an informed decision on buying; or not buying; rental car insurance!

Some of the most frequent questions our readers ask us to address are those related to rental or hire car insurance types and how should a person consider. While it may seem a bit confusing at first, arranging insurance for a rental car is much simpler than 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 minimize the risk rental car companies are exposed to and hold customers accountable for their own accidents while the car is within their custody. Below are the most common types of covers for rental car insurance:

Collision Damage Waiver (CDW)
This cover is there to protect you from paying for any collision damages that happen to the rental car when 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 cover, and if you want to know more about it and whether or not it’s recommended 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.

Though theoretically, this seems like a cover worth buying, you need to consider if you already have decent medical insurance coverage that would eliminate the need for this cover, and maybe if you’re a visitor to the UAE and thus renting a car abroad, your travel insurance might have you covered. Be sure to always check the “small print” of any document to ensure you are fully covered: whilst it might not seem worth spending a few more dirhams on insurance, it might 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 get 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 know more about this, it is worth checking our previous blog: What Are The Main Coverages Under A Home Insurance Policy?

Our Verdict: Should you purchase insurance for a rental/hire car?

In general, however, our view is that it’s definitely advisable to be protected for many different risks when driving a rental or hire car. However, before spending a few hundred dirhams on covers you might already have, we recommend talking to an insurance expert to get their expert evaluation after considering the different insurance policies you have and your needs. And we know just the place!

At our team of expert insurance advisors are willing to go above and beyond to make sure you have the best cover for your needs and you got the best value for your money. Give them a try today!
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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.