Blog

We often find people asking questions regarding rental or hiring car insurance types and how one should consider it. Although this might be confusing, trying to arrange insurance for the rental car is much simpler. That’s why we are here to help!

Rental Car Insurance Types

Nowadays, when you approach a rental car insurance provider, they might offer you various car insurance types based on your rental car.  These covers serve the purpose of minimizing the risk related to rental car companies.  The risks can be the rental car company’s exposure, holding customers accountable for their accidents while the car is in custody. Here are a few common types of rental car insurance coverage:

Personal Effects Coverage:

This type of coverage is considered compulsory for specific business types in some emirates: Dubai’s Federal Law, for example, prevents companies from purchasing any such insurance to cover for their liability related to any damage or injuries suffered by their employees. It can be because of a work-related incident or providing compensation or salary payment, respectively.

Collision Damage Waiver(CDW):

This is the type of coverage provided during any collision damage that might occur to the rented car in your custody. In terms of this cover, as long as you pay the surplus of the claim specified in the deal, the rental car provider will forfeit its right to let you pay the cost of repairing the losses.

Professional Indemnity Insurance:

Professional Indemnity Insurance coverage is served as a protection for personal belongings that might get damaged or stolen from your rental car during a specific set of events. And therefore, it’s needed to confirm with your travel or home insurance provider if they protect such insurance.

Personal Accident Insurance:

This protection prevents you and any travelers traveling with you in the rental car from all medical bills that may result from an accident in which you may find yourself. While this appears to be a cover worth buying technically, you need to remember whether you already have an excellent medical insurance policy that will remove this coverage’s need. Even if you are a UAE tourist and rent a car abroad, you might have your travel insurance protected.

So should you purchase insurance for a rental/hire car? 

Generally, our advice would be to check for rental car policies that cover coverage protection for various kinds of risks. Although, before you proceed towards spending a few hundred dirhams on your insurance, we recommend you talk to an expert insurance policy provider. They can guide you with their expert evaluation after considering different insurance policies and your needs. Our team of specialist insurance consultants at Policy House can go above and beyond to ensure that you have the right protection for your needs and that you have the best value for your dollar. Today, give them a chance!