Traffic accident in the UAE? How to get back on the road with a replacement car

Dubai: Getting into a car accident is stressful enough, but being left without a vehicle while yours is under repair can turn an inconvenience into a major disruption. This is where replacement cars come to the rescue.

These temporary vehicles are provided as part of private motor insurance policies, but your eligibility for one depends on several factors.

From the criteria you need to meet and the necessary documentation to the duration you can use the replacement car and who covers the cost, here is a breakdown of everything you need to know about securing a replacement vehicle after an accident.

What is a replacement car?

“A replacement car, also referred to as a temporary rental car or courtesy car is provided under private motor insurance policies, but only if this benefit was included at the time of purchase. Typically, it is available in the event of an accident involving the insured vehicle. The duration for which a replacement car is offered depends on the insurance provider, usually ranging from seven to 15 days,” Madiha Asif, business analyst and personal lines manager at Nexus Insurance Brokers, told Gulf News.

When can I get a replacement car?

Asif clarified that your eligibility for a replacement car depends on your insurance policy and whether the accident is classified as ‘own fault’ or ‘non-fault.’

“For ‘own fault’ accidents, after registering the claim with the insurance company, the insured can request a replacement car, which is usually delivered to the specified location within 24 to 48 hours,” she said.

Required documents include:

• A valid UAE driving licence.

• A valid Emirates ID.

• A credit card for pre-authorisation to secure a deposit covering toll charges and potential traffic fines.

In the case of a non-fault accident, the at-fault party’s insurance company approves the replacement car.

“Approval is granted after the insured vehicle is sent to the workshop and repair estimates are approved by the third-party insurer,” Asif added.

Are replacement cars available with all types of insurance?

The replacement car benefit is an optional add-on available only with comprehensive car insurance policies.

“However, in a non-fault accident, even drivers with third-party insurance are entitled to a loss of benefit allowance (substitute vehicle) from the at-fault party’s insurer. This is typically provided for up to 15 days,” Asif explained.

When does my insurance not cover a replacement car?

“A replacement car is only provided if the policyholder opted for the ‘rent-a-car cover’ at the time of purchase. Without this add-on, the insurer is not obliged to provide a replacement vehicle,” Hitesh Motwani, Chief Marketing Officer (CMO) of insurancemarket.ae, said.

Motwani also noted that coverage might not apply in specific scenarios, such as:

• Damage caused by situations not covered under the policy, such as intentional harm or driving under the influence.

• Repairs required due to regular wear and tear, rather than an insured event like an accident.

How long can you use a replacement car? Know your policy limits

“The duration for which you can keep a replacement car generally ranges from seven to 10 days, depending on the terms of your insurance policy,” Motwani said. He added that this period could vary depending on whether the policy offers coverage on a per-accident or per-policy-year basis:

Per accident basis:

If your policy allows 10 days of replacement car cover per accident, you can use a replacement car for up to 10 days after each insured accident requiring repairs. This option is ideal for drivers seeking coverage for multiple accidents within a policy year.

Per policy year basis:

If your policy limits replacement car cover to 10 days per year, you can use a replacement car for a total of 10 days, regardless of the number of accidents. For example, if you use a replacement car for seven days after one accident, you will have only three days left for the rest of the policy year.

Understanding whether your policy operates on a per-accident or per-policy-year basis is essential for managing expectations and planning for vehicle downtime.

What happens if the other driver is at fault?

Asif explained that in a non-fault accident, the at-fault party’s insurance company is responsible for providing a replacement car.

“If you are not at fault, the other party's insurer covers the cost of a replacement car while your vehicle is being repaired, even if your own policy does not include a courtesy car benefit. It’s your right to ensure you are not inconvenienced by someone else’s mistake,” Toshita Chauhan, business head for health and motor insurance at Policy Bazaar UAE, added.

Can you pick your replacement car?

If you are at fault in an accident, you are generally limited to the replacement car options available through your insurer.

“However, if you are not at fault, the situation is more flexible. Most insurance companies follow a common practice of approving a budget typically Dh70 to 100 per day for up to 10 days for a replacement car. In such cases, you can rent a car of your choice within the approved budget, and the cost will be reimbursed once you submit the invoice to the insurer. This ensures you are not inconvenienced while your vehicle is being repaired,” Chauhan said.

Will your policy cover the rental cost?

Chauhan explained that if you are at fault, rental costs are only covered if your policy specifically includes the car hire benefit.

“If you are not at fault, the other party’s insurance often reimburses you, even if your own policy does not include car hire benefits,” she said.