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What is Car Hire Insurance? Is it Really Needed?

Car hire insurance just like conventional insurance packages provides protection and safety to the rental car before you take it out on streets. The price of rental car includes the basic charges plus car hire insurance cost. Car rental insurance is important as it will protect you from paying for the damages related to repair or accident. There are three main components of car hire insurance that must be included. If the benefits are to be evaluated, car hire insurance will reduce financial risks and give you mental relaxation so that you can enjoy your drive.

Car Hire Insurance

Collision Damage Wavier

In this part of insurance, you are safe from payments if the car’s body gets damaged in any accident on road. The basic amount of money that is paid upfront will cover for majority repair costs, however in some scenario you might have to pay the extra amount that is called the ‘excess’. Collision damage waiver will only be useful if you strictly adhere to the terms and conditions set out at the time of rental agreement like duly following the speed limit.

Theft Protection

Theft protection as the name suggests will save your money in car theft accidents or in circumstances where damages were incurred in attempt to steal the car. Similarly you might only be legally bound to pay the over and above cost. However, if the negligence has occurred from your part, for example if you forgot the keys inside the car, or forgot to lock the door making it easier for the burglar to break-in, theft protection cannot help you.

Third-Party Liability

Third-party liability covers for the damages you caused to a third person’s car or an individual. This is unique in a sense that this protection does not include the rental car itself. There is an estimated budget for third person liability, which means damages worth a pre-decided amount can only be paid for. Different car rental companies have their specific conditions for this branch of car hire insurance, so research the terms and conditions thoroughly.

Cheap Car Hire Dubai

How to Purchase

Cheap car hire Dubai companies might not include hire insurance in their package. However, you can work it out yourself as it is simple. You can easily use your credit card to purchase it, and in some cases where credit card already covers for the insurance cost, you can hire car at a lesser price. Thus it is beneficial that you research the benefits that your credit card provides or what your desired hire car insurance policy covers. Additional benefits that are not included in the basic package can be purchased directly from rental companies’ front desk.


The most obvious benefit of car rental car is that it will save your money. The payment for damages without insurance cover might have high deductibles. Deductibles are the amount of money that will be required to pay for the damage or loss incurred under your use. If you are visiting Dubai for a business engagement it is likely that the rental car provided by the office does not cover for insurance. In these situations, visit the rental company and use credit card to cover for the insurance.