Car insurance is mandatory for driving in the UAE, whether it is your vehicle or a rented vehicle. For purchased vehicles, different types of insurance plans are available in the market. However, for a rented vehicle, temporary car insurance is a recommended option. Temporary insurance is provided for a short term, allowing drivers to manoeuvre around the city legally.
Let’s take a closer look at temporary or short-term car insurance in detail.
Temporary Car Insurance
Temporary auto insurance offers coverage for a limited period, as per the requirement. The period is flexible and its validity can be for an hour, week or months, but less than 12 months. That said, the flexible period offered by short-term insurance secures drivers from financial debt in case of an accident.
What is Covered by Temporary Car Insurance
Mentioned below is the list of things that are covered by the temporary car insurance.
- Vehicle Damage: All the damages caused to the vehicle in case of an accident, including repair bills.
- Medical Bills: Medical bills of the policyholder.
- Third-Party Liability: Insurance will cover damages caused to the other vehicle, property or person caused in an accident.
- Theft and Fire Damage: In case a car is stolen or damaged due to fire, the insurer will offer coverage.
- Roadside Assistance: A few insurance providers also offer roadside assistance to the policyholders.
What is Not Covered by Temporary Car Insurance
Now that you are aware of what is covered by a temporary car insurance plan, let’s take a look at things that are not covered by the insurance.
- Electrical Damages: Electrical car part damages, for instance, a malfunctioning car computer, will not be covered by the temporary insurance.
- Vehicle Rollover: Damages caused due to the vehicle rollover are not covered by temporary insurance.
- Uncontrolled Damages: Cars affected due to uncontrolled situations like war are excluded from the coverage.
- Intentional Damages: On-purpose damages, or damages caused when using a car for professional sports, are not included in the coverage.
- Driving Under Influence: If the drivers are found guilty of being influenced, the damages will be excluded from coverage. Moreover, the drivers will also be subjected to traffic fines in Dubai or the Emirate they are driving in.
Types of Temporary Car Insurance
Following are the different types of temporary car insurance offered to the drivers.
Non-Owner Car Insurance
As evident from the name, the non-owner car insurance plan is offered to drivers who are driving a car that is not directly under their ownership. This insurance plan is usually required when a car is leased or loaned to purchase from a bank.
Non-owner insurance offers all the basic coverages; however, it is lower in contrast to comprehensive car insurance plans.
Rental Car Insurance
A rental car insurance plan is essential when driving a rented vehicle in the UAE. It offers coverage in case of rental car accidents; however, liability is not covered by the insurance.
Please remember that policies of coverage vary from insurance provider to provider. Therefore, it is recommended to discuss the policy with your car insurance provider prior to opting for a temporary rental car insurance plan.
Gap Car Insurance
Gap car insurance is ideal for loans to purchase vehicles. Gap insurance covers the difference between the selling value and the actual loan amount. That said, in most cases, the loan amount is usually higher. Simply, if your car’s market value is lower than the amount of the loan, the gap insurance will also be included.
Pros of Temporary Car Insurance
Mentioned below are some benefits of buying a temporary car insurance plan in the UAE.
Convenient Premium Plan
Unlike comprehensive or third-party liability insurance plans, the premium of temporary insurance is relatively lower. Moreover, there are no annual premiums; the drivers are only obligated to pay the premium for a limited period, reducing the overall cost.
Comprehensive Coverage
Although the premium of temporary insurance is lower, the coverage offered is significant. Car owners can leverage comprehensive coverage for a limited time, securing them from financial debts.
Highly Flexible
Temporary insurance is highly flexible in terms of time and budget. It allows vehicle owners only to get the coverage till it is required.
Easily Available
A number of car insurance companies in the UAE offer temporary insurance, making it easily available for vehicle owners. Moreover, owners can also opt for the plan online.
Ideal for Travellers
Tourists and frequent travellers can opt for temporary car insurance as it is provided for a limited time. It secures their vehicle during the trip, safeguarding them financially.
FAQs
When a temporary car insurance plan is required?
A temporary car insurance plan is required when learning to drive or driving a borrowed, rented or leased vehicle.
Can I add multiple cars to my temporary car insurance plan?
Yes, few insurers allow policyholders to add multiple vehicles in a single temporary insurance plan.
How much will a temporary car insurance will cost?
The cost of temporary car insurance depends on multiple factors, including car model, type of insurance, age and driving record.
What is a car insurance deductible?
A car insurance deductible is the amount of money a policyholder agrees to pay before their insurance company begins to cover the costs of a claim. It is typically a fixed amount specified in the insurance policy.
This was all about a temporary car insurance plan and its benefits. A temporary car insurance plan is required when driving a rented or borrowed vehicle. Though the temporary insurance covers the financial debts, driving a rented or borrowed vehicle also involves multiple other risks. That said, it is recommended to buy your vehicle rather than drive borrowed vehicles. Browse through these used cars for sale in the UAE and choose from an array of cars as per your budget.
Besides, if you are unaware of the market, read through our annual non-luxury pre-owned car market report 2023 to have a complete overview of the UAE’s car market.
Stay tuned to dubizzle’s auto blog for more information on long-term car insurance.
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