Which insurance is best for car hire in Dubai ?
When you rent a car to move around in Dubai, you should be sure that insurance covers you completely. Here is a guide to find the best car insurance for your needs and how to avoid duplication of coverage.
It is mandatory that you get complete protection if you are driving in Dubai. You will be on the wrong side of the law for not having full protection and cover. Individuals are at risk of having to pay for the repairs of another vehicle in the event of an accident.
Evaluate what is best for you
Figure out your policy and what extent of cover you need ahead of time makes process of obtaining it easier. Here are the steps to follow:
- Evaluate your credit card benefits and policies like medical, liability and auto to find out if you are covered for vehicle rental.
- Do your research regarding the types of policies to understand if you require more coverage.
- Shop around and compare rates at different rental websites.
You can also opt for any missing covers directly from the rental desk if you choose to hire on location. Rental companies that are charging you for repairs, can also charge you for loss of use to their vehicle, diminishing value, towing, and administrative fee for claims. A comprehensive policy can guard you against excessive charges so make sure you get full coverage.
Checklist for auto rental policy
Below is our checklist of some essential features that a good rental vehicle insurance policy must include.
- Windscreen, windows, mirrors, tires, engine and body damage
- Cover for loss or damage to personal belongings
- Personal accident cover
- Rescue and breakdown cover
- Loss or theft of keys
Benefits of auto insurance in Dubai
Authorities making it mandatory for every vehicle on the road to have vehicle insurance, is beneficial in these ways:
- Your insurance covers repair or replacement of your car.
- If your vehicle will get in an accident with another car, the insurance also covers repairs of other vehicle.
- Company also takes care of any legal matters arising against you as a result of the accident.
- You have the privilege of visiting any repair shops registered with your company.
- Get a bonus if you do not claim any service on your protection for a whole year.
- Dubai residents and expats, get courtesy cars if their cars get into an accident.
Who can get auto insurance in Dubai?
Those who are eligible to get car insurance in Dubai are UAE residents – those who are UAE resident’s visa and have the UAE driving license.
There is no overestimating the importance of rental car insurance, both minimizing financial risk and the peace of mind it affords. But the kind of coverage you need depends on a lot of factors. Any overspending in this area stems only from a lack of knowledge.
Clearly, you are looking to get the best deal for car hire without compromising your financial well-being. But if you find yourself falling victim to hard selling at rental desks, it is essential that you educate yourself in the science of obtaining car rental insurance.
Types of basic car insurance in Dubai
There are two basic types of insurance in Dubai:
Third party liability insurance – if involved in an accident with another vehicle, this type of insurance covers the other car and its passengers, but not your own auto. This is cheapest insurance and mandatory by authorities. But the downside of this plan is that you will spend more on repairing your damaged car, than what the higher insurance would have cost you.
Comprehensive cover – this type covers both cars and their passengers in a car accident. It also takes care of other accidents with car like theft, fire, damage. The comprehensive insurance is more expensive and has many more benefits.
Four types of comprehensive covers
In the UAE, law requires rental companies to provide coverage inclusive of the rental price. There are 4 optional rental cover available:
Collision Damage Waiver (CDW) – These are technical ‘waivers’ and not covers. They provide relief to the renters of their financial responsibility if the rental car is stolen or gets into an accident.
Liability Cover – It provides higher supplemental liability limits for adequate protection.
Personal Accident Cover – This covers against medical and ambulance costs in case of a crash and provides death benefits.
Personal Effects Cover – It provides protection against theft of personal belongings from rental car up to limit.
How much does it cost in Dubai ?
Car insurance is low cost and affordable since it is compulsory. There are comprehensive plans that are more expensive than others. There are extra benefits that they offer depending on type of car. All the plans are for a 12-month period, after which you may renew your plan. Insuring a car in Dubai costs between AED 300 and AED 600 per month depending on car or plan type.
What is price of premium?
Premium is simply amount of money that you pay to fund your car insurance account with your company. Not every subscriber pays same rates, as premium is either high or low depending on certain factors.
Premium is high when:
- There is ‘off-road coverage’
- Car owner or driver is inexperienced, or younger than 25 years old
- It is an expensive vehicle
- It has break down and GCC coverage
Premium is low when:
- The vehicle is new and has very good safety features
Some car rentals in Dubai include cost in their insurance for people who want to go off-road. Those who are younger than 21 years old, and have not actively driven in a while, get a higher premium.
How to get vehicle insurance ?
Before you start to engage with an insurance company, check out various companies, their plans, and the options they offer. This will prevent from signing up for a plan which is not beneficial.
To register for auto insurance in Dubai, you will need to present:
- Your passport data page
- UAE resident visa
- Your UAE driving license
- Car registration papers or the proforma invoice
If wish to change provider, just make sure that you obtain ‘no claims’ certificate from current provider . You can get the benefits with any other company that you sign up with next.
What to look out before signing up ?
- Track record and reviews (online and offline)
- The benefits they offer on the plans
- Their prices – if it suits your budget
- Policy – how many people a plan covers
- Their support services
Auto insurance in Dubai is pretty much straightforward but can be slightly expensive. Many people in Dubai drive high-end vehicles these days and premium for them would be higher than regular cars. It would be good to compare a couple of companies for policies and prices.
Finally, third party plan is cheaper but does not cover everyone. The comprehensive plan may save you more so you may want to consider getting full coverage.