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Car Rental Insurance – Things You Should Know About

Written by Huma

Conflicted whether you want car rental insurance or not?

Yet, the right question is, do you really need a car hire?

No Doubt, the UAE is the main attraction for tourist visits and business exhibition, and when it comes to driving in this country, every experienced individual would recommend you get a car rental.

Visiting Dubai for the first time and still not familiar with the places and location can be a bit challenging.

This is where rent a car in Dubai comes into action. Cheap Car rentals have now become an alternative used generally by passengers.

As a result, many rent-a-car companies as part of their business portfolio facilitate their clients with already insured cars. They provide insurance on their behalf so in case of unfortunate incident companies bear the expense.

However, there is no exhortation that visitors should buy rental car insurance while taking long trips or holidaying in Dubai. That being said, we admit that they are quite beneficial both in terms of minimizing financial risk and the peace of mind it affords.

FAQS on Car Rental insurance

1) Is this type of insurance necessary?

Ans) Yes it is! Let’s think ahead little,
1. When you hire a car the company gives their property to you and expects the return of the car in one piece.
2. Accidents do happen even when you are not at fault and if you’ve rented a car that is not insured then the responsibility of damage falls on you.
3. So, it’s important never to book a car without insurance especially if you’re taking long trips and having it for a number of days.

2) Is this insurance the same as the cover offered by the Rental Company? 

Ans)This does create confusion when you have to opt-out of the policies for yourself particularly if differing terminology is used.
To make it simpler and easier to understand,
1. Rental car insurance will cover you for all charges that you are contractually liable to pay to the Rental Company if the vehicle is damaged or stolen.

3) How many types of car rental insurances are available?
Ans)

1. Collision Damage Waiver (CDW)– These are not insurance products but more likely waivers cover that is based on the concept of supporting the financial aid if the car is damaged or stolen under the renter’s supervision.


2. Liability Insurance – Also known as third party insurance that covers the costs of the other driver’s property and bodily injuries if you’re found at fault in an accident.


3. Personal Accident Insurance – This covers the renter and the passengers against medical and ambulance costs in case of a crash and also provides death benefits.


4. Personal Effects Cover – This type of insurance provides protection against loss or theft of valuable belongings from the rental car, up to a set insurance limit

So, if you are looking to evaluate your choices correctly and reasonably you’ve come to the right place.

BuyAnyInsurnace always makes sure it delivers authentic and informative content to our clients. So, let’s see what the perks are of car rental insurance:

1) Company Website

Technological advancements have made the transfer of information quick and easily accessible. In a matter of minutes, you can get a fairly good idea about the rented car, it’s details, and any insurance policies attached.

Looking at the company website you will get the basic information about the following:

  • Most international rent-a-car corporations in the UAE, take extra money for an insured car. So, select the car in which you are satisfied with both the price and the coverage after evaluating all the pros and cons associated with it

  • And there is another option; you can go for mandatory comprehensive insurance which is already included in the insurance charges.

2) Understand the process of rental insurance

Having advanced information about the rental insurance types and coverage services of rental insurance gives you an advantage. As a result, you’re liable to make wiser decisions. Furthermore, it will be hard for the company representative to fool you. Also, you can easily grasp the process of obtaining the rental insurance easier.

Following easy steps are involved.

  1. To know the degree of an already covered rental car, first, you should compare your credit card incentives and other insurance policies like medical, liability, car and homeowners.
  2. Incidentally, do your online or offline research on the categories defined by the car renter’s protection policies to understand if you require more coverage

3)Find and Compare Best Car Rental Companies

We do a lot of research before making a big purchase. Similarly, compare various car rental rates by visiting different websites. Seek those companies that provide you

  1. Affordable price in your desired location,
  2.  Free delivery
  3. Active customer support
  4. Comprehensive insurance coverage.

4) Full coverage Car Rental Insurance

When you hire a car you are not only paying the rent
but also the

  1. charge of wear and tear,
  2. diminished value
  3. towing and regulatory compensation associated with claims
  4. police reports

A full coverage insurance policy can guard you against these claims/charges so make sure you remain covered.

 5) Credit Card service for rental car insurance

There are serval credit card providers who are offering free Collison coverages for rental cars. Two things should be focused on:

  1. In the case of primary coverages, you are registered with the credit card firm for this rental insurance that will cover your Collison insurance and taking responsibility for full payment. Therefore you don’t need to call or sign any documents.
  2. But in case of secondary coverage, meaning your own auto insurance policy will pay out first.

6)“Must-Haves” in a Rental Car Insurance Policy

Below
is our checklist of some essential features that a good rental car insurance
policy must include.

  1. Windscreen, windows, mirrors, tires, engine and body damage cover
  2. Cover for loss or damage to personal belongings
  3. Personal accident cover
  4. Car rescue and breakdown cover
  5. Loss or theft of keys
  6. Cover for legal expenses

7) Rental car insurance Vs own auto insurance

Under many insurance options, you can now avail the best options to determine if you already have coverage within your auto insurance policy.

  1. Coverage
    from your own policy applies when you are using a rental car for personal,
    nonbusiness purposes.
  2. The
    rules may be different for business use of a rental car.
  3. Check
    with your insurer or employer for details about coverage when using a rental
    car for business.

8) Long-Term Car Rental  

The ideal choice for your long stays (expats) and a long drive is long term car rental. Where you can rent the car for a number of days.

If you are staying for months or a year then get a long-term car rental with insurance. As it makes more sense than normal weekly/monthly car rental insurance

Most of the car rental companies offer deals of car rental with good insurance packages to their clients who are having the car for a number of months/years. So, you can enjoy the perks with a reasonable amount

Therefore, renting a car has its own beneficial factors

  1. If you are an immigrant or expat then you don’t have to buy a car in a country where you are for a few months/years. Therefore, you can save your car from extra mileage and kilometer.
  2. Car hire also means that now only the insurer will be responsible for covering the expense of renting a car
  3. You rent a car at a fixed price, sometimes with an option to decide the duration of car rental for 5 days to 2-weeks.

Conclusion:

It’s human nature, everyone tries to look for an opportunity where they get a deal for car hire that doesn’t compromise their purchasing power. But lack of understanding almost always lets you down where you can get rental car insurance perks and incentives.

The more you are well informed the more you can make the right decisions. Clients have to see which hire-car insurance is best suited for their car and financial requirement and read all the terms and condition while discussing the specification and coverages of each type before renting the car.


Originally published Oct 15, 2019 10:53:26 AM, updated May 04, 2021

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