Why is Replacement Car Cover a Popular Add-on for Drivers in the UAE?

It is important to practice car insurance UAE compare before buying one. There are two types of auto insurance policies- third party liability and comprehensive.

Third-party liability cover is the compulsory and minimum car insurance, which you must possess to be able to drive your car on the roads of the Emirates. It is economical and only covers third-party liability.

When you go for a comprehensive plan, the car, the owner of the car, as well as the third-party get covered efficiently. In a comprehensive insurance policy, there are many types of add-on covers also available using which your car insurance can be enhanced further. One of the additional covers is ‘replacement car cover’.

Now, let us see what exactly the replacement car cover is.

It is the most famous car insurance add-on in the UAE. According to the recent statistics, it is amongst the most sold add-ons. Some of the other popular additional covers are breakdown cover and accident protection cover. Although a comprehensive policy offers the benefit of replacement vehicle; however, this benefit is available only for those individuals are not at fault in the accident.

Hence, this is why most of the car insurance plans are sold along with this additional cover because the insurance company gives out the compensation no matter whose mistake the accident is. If you buy a replacement vehicle cover, the insurance provider will offer you the option of car replacement no matter you are at fault or not 

Benefits of this Add-on

The replacement of car add-on functions as an extended courtesy car insurance product. The main benefit of this add-on is that is covers that risk, which is not covered in your comprehensive car insurance plan.

In case your vehicle is stolen, the insurance provider will offer a replacement for the vehicle. Hence, in this way, this insurance add-on will keep you on the road. You can purchase this additional cover online after comparing different quotes from multiple insurers.

Listed below are some of the benefits of this insurance cover.

• This add-on covers the geographical boundaries of the UAE.
• The benefit is offered to the customers on a 24x7 basis.
• You can purchase the GCC cover by making payment of an additional insurance premium.
• If the vehicle could not be restored or repaired post an accident, the cover gets applied for a maximum of 14 days.
• The car gets delivered at a convenient location 

Exclusions of Replacement Car Cover

Here are some of the exclusions mentioned under this car insurance add-on.

1. Exceeding the Deadline of the Claim

The insurance provider will stipulate a deadline prior to which you must claim the replacement car cover. If you claim this add-on post the deadline, the insurance provider might not entertain the claim. Usually, the deadline is five days after the vehicle insured is declared to be a total loss by the responsible authority. 

2. Hire Fees after the Cover Expires

This additional cover on car insurance remains applicable for a duration of 14-21 days. In case you hire your car after the days as mentioned in the insurance plan, you must pay these charges from your own pocket. 

3. Hire-Related Costs

The insurance provider is not liable for making payment on the fuel charges. In case there is an additional charge or fines levied by the hiring agency, your insurance provider will not be responsible for such payments. 

When should you buy this Additional Cover? 

When your car is stolen

Any person can buy this additional cover who is at the risk of losing their vehicle due to different reasons. When you lose your car because of theft or accident, you may lose your mode of conveyance too. The insurance provider will help you in this situation and offer you a replacement car such that you can travel without any kind of issue. 

When your car goes through Vandalism

If your car has to bear vandalism, there will be a huge loss. In some of the cases, it may also be categorized as “total loss”. The insurance provider will offer the car replacement so that there will be a huge relief for the insured. 

When your car is written off

Your vehicle may be written off because of many different reasons. In case you fail to pay the car loan, the lender will have the rights to auction your vehicle after receiving the notice from the court. 

Your Convenience

The access to the replacement car cover add-on offers convenience to the owner of the car in many ways. 

The facility of Pick-up & Drop

The insurance provider offers you a facility of dropping the car at a location of your choice as mentioned. In the same way, it also picks your vehicle from the location you have opted for. 

Cushion Period for Figuring Out the Replacement Vehicle

The insurance provider offers you enough time for finding the most appropriate replacement car, which can fulfill your requirements. You can select a new or a used car on the basis of your budget. 

Additional Drivers Covered

Some of the insurance providers also extend this cover to 2 additional drivers under this car insurance add-on. 

Fuel to the Ride

The car hired comes with sufficient fuel for riding different locations so that official, as well as personal tasks of the customers, can be accomplished efficiently. 

Note: It is recommended that you check the facility while you subscribe to the add-on. The terms and conditions of different features that are offered under this cover may be different for different insurers. 

The Final Thoughts!

For making the most out of your car insurance plan, you must be aware of all the terms & conditions related to it. While purchasing a new policy, you should check what your insurance needs are. You should buy the most suitable insurance plan for covering different kinds of risk factors effectively and replacement car cover is rightly amongst one of them.