Can You Insure A Lease Car In Dubai
For many, the UAE is a place they have come to call home, but it is not their birthplace or country of origin. It is somewhere chosen to build a new life, and as many have been drawn here for job opportunities, it is unlikely to be forever. With that in mind, renting, whether it's accommodation, household contents or a vehicle, is popular and common because when it's time to leave, such things can be left behind.
Transport is a top priority for those who want to travel: especially in Dubai, where life is truly 24/7/365. For many people, leasing a vehicle is preferable to buying one, and with the many options available, consumers are spoiled for choice with a range of vehicles to register. But what about insurance? Can you cover a vehicle that is not yours? Read on to find out how to insure a leased car in Dubai.
There is no hard and fast answer
While a leased vehicle can be fast, there is no hard and fast answer when it comes to insuring it. It's all about the terms of your contract with the company you rent the vehicle from. Some companies are required to insure the vehicle: with strict provisions on the type of cover you must have. Others keep things convenient for the customer by including the insurance in the lease contract itself: the monthly payment includes the relevant insurance premium, so you don't have to worry about having to pay multiple monthly payments.
Check with the leasing company before signing the contract
Trying to cover the vehicle yourself can be time consuming and expensive, so if the leasing company offers insurance as part of your contract, it might be worth considering, provided the other terms and conditions stack up.
For example, all vehicles leased to LeasePlan Emirates clients are insured. Both the insurance coverage itself and the relevant conditions are specified both in the paper contract and on their website in the "My company car" section. You can expect this from some of their competitors as well, so if you're considering a particular company, you can check out their website as a good source of references.
If you need to insure the vehicle yourself
If you are dealing with a leasing company that does not provide insurance as part of the contract/deal, you will need to take out insurance yourself. For this purpose, it is recommended to contact a reputable insurance broker. Trying to go it alone and find a suitable cover on your own can lead you in the wrong direction and you may end up in a dead end! An insurance broker knows which insurance companies to contact for coverage and will keep you on track. Generally speaking, you'll need decent comprehensive car insurance that covers both your own damage and third party liability (the latter being the minimum cover mandated by law in the UAE).
What are the vehicle insurance requirements for rental vehicles?
Insuring a leased car is somewhat different from insuring a car that is yours. Despite not being the owner of the vehicle, you are required to take out appropriate vehicle insurance covering certain risks. When you own a car, you have the choice of which policy suits your needs and budget, and you can even choose the minimum coverage available. However, a leased car will generally require comprehensive insurance to meet both legal requirements and the leasing company's own arrangements.
Your lease may also include some insurance to protect your landlord. It is common for leasing companies to purchase what is known as "gap insurance" for leased cars. This is special insurance that covers the difference in costs between what you owe on the vehicle under the lease agreement and what your insurance company offers to pay in the event of a total loss. Including gap insurance in your lease agreement helps protect the leasing company from any financial losses caused by repairing or replacing the vehicle.
How much does car insurance cost to rent a car in Dubai?
The cost of car insurance depends on a number of factors, namely your driving history, experience and age, along with the characteristics of the vehicle (value, performance, make & model, intended use). Regardless of whether you own or rent a car, the criteria and considerations are the same.
The difference lies in the nature and level of coverage. Leasing companies generally require comprehensive policies with higher limits and additional coverage such as collision damage waivers or increased excess. So depending on what exactly is required, you may find that the cost of insuring a leased car in Dubai is significantly higher than the cost of insuring the one you own.
Your lease may also include some insurance to protect your landlord. It is common for leasing companies to purchase what is known as "gap insurance" for leased cars. This is special insurance that covers the difference in costs between what you owe on the vehicle under the lease agreement and what your insurance company offers to pay in the event of a total loss. Including gap insurance in your lease agreement helps protect the leasing company from any financial losses caused by repairing or replacing the vehicle.
