The Popularity Of Rent-A-Car Feature In Car Insurance27 Jun, 2021
Convenient, time-saving and pocket-friendly, rent-a-cars are services meant to serve in our times of need. Why are they otherwise prevalent in the UAE?
Accidents on roads are unpredictable. The repairs of vehicles as a result of accidents take time. This is the reason why many people in the UAE prefer to add the Rent-a-car / Hire Car benefit option to avoid the hassle of public transportation and to save time and cost until the repair work is complete. The procedure is much simpler and cheaper when compared to paying for the normal rates of the rent a car company.
For faulty claims, the rental fees for the Hire car will only be covered if the optional cover has been added to the policy at the time of policy issuance. In this case, contact your own insurance agent to file a claim and manage the auto rental process. All rental coverage comes with daily and claims limits, so we recommend initiating your car repairs or replacement as early as possible.
If the other driver is at fault, get the other driver's contact and insurance information and contact the insurance company directly to obtain the Hire car company. As per the new Law in UAE, the other party’s insurance is liable to provide the Hire car benefit in this case and Ideally, will accept liability and provide a rental car promptly.
However, delays often occur. If you need your rental immediately, you may need to front the rental costs yourself or rent through your own insurance company, then seek reimbursement from the other driver's insurer later.
The Insurance companies require policyholders to have comprehensive coverage first in order to be eligible for the rental car option. If a driver's insurance company is going to cover the cost of their rental car, the car insurance company wants to make sure the driver is well-covered in the event of an accident.
Note that your car insurance company will only cover you for the daily rental rate as per the agreed period between the policyholders and the insurance company. Other expenses such as the cost of gas or security deposit for the car are generally your responsibility. Furthermore, it will not cover the cost of a rental while your vehicle is undergoing routine maintenance in the shop.
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