Got into a car accident in UAE? Here’s your guide to replacement cars and insurance coverage
Know the eligibility criteria, required documentation, and insurance policy considerations
DUBAI: Getting into a car accident is a stressful and often overwhelming experience, especially when it leaves you without a vehicle.
Thankfully, if you’re insured, a replacement car can help you get back on the road while your car is being repaired.
Understanding the ins and outs of replacement cars, from eligibility to insurance coverage, can make the process smoother.
What is a replacement car?
A replacement car is a temporary vehicle provided under private motor insurance policies, but it only applies if the ‘rent-a-car’ option was added at the time of purchase. These cars are typically offered following accidents where the insured vehicle is damaged. The duration of the rental is contingent on the policy provider and usually spans from seven to 15 days. The length of time you can use this temporary car depends on the insurer’s terms.
Eligibility for a replacement car
To access a replacement vehicle, several factors must align. Whether the accident is deemed 'own fault' or 'non-fault' plays a crucial role. If you're at fault, you will need to register a claim with your insurer, after which a replacement car is typically delivered within 24 to 48 hours.
Required documentation
When claiming a replacement car, be prepared with the following documents:
- A valid UAE driving licence
- A valid Emirates ID
- A credit card for security purposes, covering potential fines and toll charges
In the case of a non-fault accident, the insurer of the at-fault driver must approve the provision of a replacement vehicle. Approval is typically granted once the repairs and estimates have been reviewed by a third-party insurer.
Is a replacement car available for all types of insurance?
The availability of a replacement car depends on the type of insurance you hold. This benefit is usually an add-on option in comprehensive car insurance policies. In non-fault accidents, even if you have third-party insurance, the at-fault party’s insurer is responsible for providing a replacement car for up to 15 days.
When does my insurance not cover a replacement car?
Hitesh Motwani, Chief Marketing Officer at insurancemarket.ae, clarifies that if you haven’t opted for the rent-a-car coverage at the time of policy purchase, your insurer is not obligated to offer a replacement vehicle. Moreover, certain circumstances, such as accidents caused by reckless driving or wear and tear, may also invalidate replacement car coverage.
Policy duration and limits
The duration for which you can use a replacement car is typically between seven to 10 days, depending on your policy. However, policies vary. Some insurers may provide the car on a per-accident basis, meaning each accident can qualify for up to 10 days of coverage. Others may provide a per-policy-year basis, where the total duration is capped annually.
What happens if the other driver is at fault?
In non-fault accidents, it is the responsibility of the at-fault driver’s insurance company to provide a replacement vehicle. This ensures that you are not left without a car due to someone else’s mistake. Toshita Chauhan, business head at Policy Bazaar UAE, advises that even if your policy does not include car hire benefits, the insurer of the responsible party is required to cover your replacement car costs.
Can you choose your replacement car?
If you are at fault, the options available to you are generally dictated by your insurer’s guidelines. However, in non-fault cases, most insurance companies allow some flexibility. Typically, insurers approve a daily budget of Dh70 to Dh100 for up to 10 days. Within this budget, you can choose the rental car of your preference, and your insurer will reimburse the cost once you submit the invoice.
Will your policy cover the rental cost?
If you’re at fault, rental costs will only be covered if your insurance policy specifically includes a car hire benefit. In cases where you're not at fault, the other driver’s insurance is usually responsible for covering the costs, even if your own policy does not offer rental coverage.