In the UAE, all car hire companies must provide basic insurance on all the vehicles. While hiring a car, it is essential to check the insurance policy mentioned in the rental contract to be sure it has extensive coverage. The complex terms and various jargon used in these insurance agreements may often be confusing and difficult to understand. Here is a brief on the basic insurance types:
Collision Damage Waiver (CDW)
As the names suggest, the CDW covers the expenses incurred in the repair works due to an accident. However, the coverage scope may differ according to the renting company, car category, and contract conditions. Some CDW insurances provide complete financial aid for all the repair works needed due to the accident.
Loss Damage Waiver (LDW)
LDW can save you from any unexpected expenses due to theft or damage to the vehicle. It involves a combination of CDW and Theft Protection expense coverage. This will help you save any expenses for car replacement or any repairs required for the vehicle due to vandalism, collision, fire, acts of nature, among others. The amount of waiver differs depending on the insuring company’s policy or the scope of service that you have opted for.
Supplemental Liability Insurance (SLI)
SLI may be referred to by various names such as Liability Protection, Third Party Insurance, among others, by different car hire companies. This service basically covers expenses involved in any damage to someone’s vehicle, property, or the medical expenses required due to any mishap with your insured vehicle.
Personal Accident Insurance (PAI)
Similar to any travel insurance, PAI insures a specific amount to the renter’s next of kin in case of accidental death. It also involves any medical expenses or ambulance costs that the renter or the passengers with him/her may need in case of an accident while traveling in the rented vehicle.
PEC – Personal Effects Coverage
Also known as Baggage cover, PEC assures to cover any loss of possession and valuables left in the insured vehicle. Here the expenses will only be covered for the renter, his/her direct family members, or passengers.
Apart from these prominent insurance types, your rented car insurance may also include Roadside assistance and RSP that ensures quick support in various situations such as loss or non-functional car keys, flat tire, sudden breakdown, running out on fuel, among others. While renting a car, make sure you get detailed information on the insurance package included in the agreement, all the exceptions, conditions and add on any services that you think you may need in the future.