r gFor many, the UAE is a place they’ve come to call home, but it’s not their birthplace or country of origin. It’s somewhere chosen to build a new life, and since many have been drawn here due to work opportunities, it’s unlikely that it’s forever. With that in mind, renting, whether it’s accommodation, home contents, or a vehicle, is both popular and commonplace, as when it’s time to leave, such items can be left behind.
Transportation is a top priority for those looking to get around, especially in Dubai, where life really is 24/7/365. Leasing a vehicle as opposed to buying one is a preference for many, and with numerous options available, consumers are spoiled for choice in the range of cars to lease. But what about insurance? Can you cover a vehicle that isn’t yours? Read on to find out how a leased car in Dubai can be insured.
There’s no hard and fast answer.
Whilst the lease vehicle might be fast, there’s no hard and fast answer when it comes to insuring it. It’s all about the terms and conditions of your agreement with the company you are leasing the vehicle from. Some companies make it your responsibility to ensure the car is covered, with strict stipulations on the type of coverage that must be in place. Others keep things convenient for the customer by including insurance in the lease agreement itself; the monthly repayment consists of the relevant insurance premium, so you don’t have to worry about making multiple monthly payments.
Check With The Lease Company Before You Enter Into An Agreement
Trying to cover the vehicle yourself could be time-consuming and costly, so if the lease company offers insurance as part of your agreement, it could be well worth considering, provided the rest of the terms and conditions are favourable.
For example, all vehicles leased to clients by LeasePlan Emirates are insured. They detail both the insurance coverage itself and the corresponding terms and conditions, both in the paper agreement and on their website under the “My Company Car” section. You can expect to see this from some of their competitor, too, so if you are considering a particular company, you can check their websites as a good source of reference.
If You Need To Insure The Vehicle Yourself
If you’re in talks with a lease company that doesn’t provide insurance as part of the agreement/deal, you’ll need to arrange insurance yourself. For this, it’s recommended to approach a reputable insurance broker. Trying to go it alone and find suitable cover yourself could lead you in the wrong direction, and you could hit a dead end! An insurance broker knows which insurance companies to approach for cover and will keep you /.’;???on the right track. Generally speaking, you’ll need a d
.ecent Comprehensive car insurance policy that covers own damage as well as Third-Party Liability (the latter being the minimum coverage mandated under law in the UAE).
What Are The Car Insurance Requirements For Leased Vehicles?
Car insurance for a leased car is somewhat different from insurance for a car that’s yours. Despite not being the owner of the vehicle, you’re obligated to buy a suitable car insurance policy covering it for certain risks. When you’re a car owner, you have the choice of which policy meets your needs and fits your budget, and you could even elect to take out the minimum cover available. A leased car, however, will generally be required to be covered by a comprehensive insurance policy to meet both legal requirements as well as the lease company’s own stipulations.
Your lease agreement may also include some insurance that protects your lessor. It is commonplace for lease companies to purchase what’s known as “gap insurance” for leased cars. This is a specialist insurance policy that covers the cost difference between what you owe on the vehicle under the lease agreement and what your insurance company is willing to pay in the event of a total loss claim. The inclusion of gap insurance in a lease agreement helps protect the lease company from financial losses incurred in the event of vehicle repair or replacement.
How much is car insurance for a leased car in Dubai?
The price of car insurance is dependent on several factors, including your driving history, experience, and age, as well as the vehicle’s attributes (value, performance, make & model, and intended usage). Irrespective of whether you own the car or you’re leasing it, the criteria and considerations are the same.
The difference comes in the nature and level of coverage. Lease companies generally require comprehensive policies with higher limits and additional coverages, such as collision damage waiver or increased excesses. So, dependent on what exactly is needed, you may find the cost of car insurance for a leased car in Dubai is significantly higher than the cost of insuring one that you own.
Your lease agreement may also include some insurance that protects your lessor. It is commonplace for lease companies to purchase what’s known as “gap insurance” for leased cars. This is a specialist insurance policy that covers the cost difference between what you owe on the vehicle under the lease agreement and what your insurance company is willing to pay in the event of a total loss claim. The inclusion of gap insurance in a lease agreement helps protect the lease company from financial losses incurred in the event of vehicle repair or replacement.
