Replacement Vehicle Insurance Cover

Third-party vs. Comprehensive vehicle insurance cover

As we’ve learned on this blog, vehicle insurance can be a comprehensive or third-party liability. While third-party insurance is mandatory by law, comprehensive insurance is most advisable by insurance experts. Comprehensive insurance safeguards the vehicle from various risk factors such as fire or theft.

A perk of comprehensive insurance

One of the perks of comprehensive insurance is a replacement car cover.

Replacement Car Cover Add-On

Under this cover, the insurance company provides a car replacement for the insuree during an incident. It is one of the popular add-ons when owners purchase auto insurance. The insurance company provides a replacement car and gives ease to the customer by keeping them on the road through this time.

Advantages of Replacement Vehicle Insurance Cover

• The insurer delivers and collects the replacement car to and from the insuree anytime and anywhere in the UAE;
• It is possible to continue coverage in other GCC countries through additional premium;
• The replacement car comes with a full gas tank and is available to the owner for numerous days till repairs or restoration are complete;
• This insurance coverage may allow additional drivers.

Uses of Replacement Car Cover

Car Theft

Till recovery of a stolen car, the insurance company provides a replacement car to the owner so that they have no transportation issues.

Total Loss

The total loss of a vehicle can happen as a result of damage due to major accidents or natural disasters. If the insurance company deems the vehicle a total loss and ineligible for repair, they will provide a replacement vehicle for a fixed period of days, depending on the insurance policy.

Vehicle Repossession

If the vehicle is under repossession due to nonpayment of loans, the insurance company might provide a replacement vehicle, if there is no fraud.

Limitations of Replacement Vehicle Insurance Cover

The replacement car cover is provisional subject to the terms, and conditions contained in the insurance policy.

Expenses

Once the insurance company provides a fueled vehicle through an agency, they are not responsible for the imposition of additional fees or fines by the agency, after the fact.

Expiration

Depending on the insurance policy, the replacement vehicle will be available for a period of 10 days or more. After the period expires, the insurance company is no longer responsible for the rent/hire fee.

Claim Deadline

A claim application for a replacement vehicle must be within a fixed period. Claims filed after the deadline are not entertained.

FAQ’s

What is the best type of cover for car insurance?

Comprehensive Car Insurance

It is the best insurance you can have. It covers you, your car and any others involved in an accident. It not only includes all the cover of a third-party fire and theft policy, but also protects you as a driver and might pay out for damage to your car.

How much is the car insurance in Abu Dhabi?

The average premium rate in Abu Dhabi is around 2.35% of the car’s value.

How do I purchase car insurance?

There are three ways to purchase car insurance: 

• Buying it online
• contacting a company representative
• working with an independent insurance broker

Buy Comprehensive Insurance

For free quote comparisons and affordable insurance policies, visit the link below, fill out the details underneath, or call now at 800 POLICY for immediate assistance.

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