Replacement Cover Car Insurance

If your car is involved in an accident and needs repairs, being without a vehicle can be inconvenient. Car replacement cover helps solve this problem by providing a temporary vehicle while your insured car is being repaired. This benefit is usually offered as an optional add-on with comprehensive car insurance in the UAE. Drivers who rely on their vehicles for daily travel often add this replacement car extension to ensure they remain mobile during the repair period.

What is Car Replacement Cover in UAE Car Insurance?

Car replacement cover is an optional add-on in motor insurance. It provides a temporary vehicle if your insured car cannot be used after an accident. Instead of arranging a rental car yourself, the insurer may provide a replacement vehicle for a limited period while your car is being repaired.

This benefit is usually available with comprehensive car insurance policies and must be selected at the time of purchasing the policy. The replacement vehicle is usually given only if the accident is covered under the policy and the repair requires more than a short period of time.

In the UAE, this cover is also known as replacement car insurance, vehicle replacement cover, or a replacement car extension in motor insurance policies.

How Does Replacement Car Insurance Work in the UAE?

The process of getting a replacement car usually begins after an accident claim is registered with the insurance company. Once the accident is reported and the vehicle is sent to an approved repair workshop, the insurer reviews the claim and confirms whether the car replacement cover applies.

If the repair is expected to take longer than a specified period, the insurer may arrange a replacement vehicle through a partnered rental company. The temporary car is delivered within a short time after approval and can be used until the insured vehicle is repaired or the maximum coverage period ends.

The replacement vehicle is provided only if the accident is covered under the motor insurance policy and the terms of the replacement car extension are met.

Types of Replacement Vehicle Coverage

Insurance providers in the UAE may offer different forms of replacement vehicle coverage under motor insurance policies. These options are usually available as add-ons to comprehensive car insurance —

1. Courtesy Car Cover: This type of car replacement cover provides a temporary vehicle while the insured car is being repaired after an accident. The replacement car is arranged by the insurer or a partnered rental company for a limited number of days.
2. Rent-a-Car Cover: With this option, the insurer may arrange a rental vehicle or reimburse the cost of hiring a car during the repair period. The coverage period and rental limits depend on the insurer and policy terms.
3. New Vehicle Replacement Insurance: Some motor insurance policies offer new vehicle replacement insurance. This applies in case of total loss within a specific period after purchase. Instead of paying the depreciated value, the insurer may replace the vehicle with a new one of similar make and model, subject to policy conditions.

Car Insurance Addons
Zero Depreciation Car Insurance	No Claim Bonus Car Insurance
Roadside Assistance	Multi Car Insurance
Return to Invoice Car Insurance	Personal Accident Cover Car Insurance
Car Key Replacement Cover	Engine Protection Cover
Anti-Lock Braking Systems	Pay as You Drive Car Insurance
Passenger Cover With Car Insurance	Agency Repair
IDV - Insured Declared Value	Airbag Protection Cover

Duration of Replacement Car Coverage in the UAE

The duration of car replacement cover depends on the insurer and the terms in your motor insurance policy. In most cases, a replacement car is provided only for the period during which the insured vehicle is under repair.

Many insurers in the UAE offer replacement vehicles for a limited period, commonly ranging from about 7 to 15 days, depending on the policy and repair time. The coverage ends once the repair is completed or when the maximum number of days allowed under the replacement car extension is reached.

If repairs take longer than the allowed duration, the policyholder may have to pay for the additional rental period.

Cost of Replacement Car Insurance in the UAE

The cost of adding car replacement cover to a motor insurance policy in the UAE depends on the insurer and the type of vehicle insured. This benefit is usually offered as an optional add-on with comprehensive car insurance and requires an additional premium.

The price of the replacement car extension may depend on factors such as the vehicle’s value, model, and the maximum number of days the replacement vehicle will be provided. Some insurers may also adjust the cost based on the policy coverage and the rental car category offered.

Since pricing differs across insurance providers, it is advisable to compare policies carefully before adding replacement car insurance.

Eligibility Criteria for Replacement Car Insurance in the UAE

To get a replacement car under your vehicle insurance policy, you need to meet certain conditions. These requirements may vary between insurers, but generally follow similar guidelines across UAE insurance policies.

• The policy must include car replacement cover or a replacement car extension
• The accident must be covered under the motor insurance policy
• The insured vehicle must be sent to an approved repair workshop
• The repair should require more than a short period of time
• The driver must hold a valid UAE driving licence

Once these conditions are met and the claim is approved, the insurer may arrange a replacement vehicle for the duration allowed under the policy.

Documents Required to Get a Replacement Vehicle

To arrange a replacement car after an accident, the insurer or rental provider may ask for certain documents to verify the claim and driver details. These documents help confirm eligibility for the replacement car insurance benefit —

Commonly required documents include — 

1. Police accident report
2. Valid UAE driving licence
3. Emirates ID
4. Car insurance policy details or claim number
5. Credit card for rental security deposit

These documents are usually required before the rental company releases the replacement vehicle. The driver may also be held responsible for fuel, traffic fines, and toll charges during the rental period.

Situations When Replacement Car Cover May Not Apply

There are certain situations where car replacement cover may not be available, even if the motor insurance policy includes this extension. Insurance companies usually provide a replacement vehicle only when the claim meets the policy conditions.

• The damage is caused by an event not covered under the insurance policy
• The vehicle is undergoing routine servicing or maintenance
• The car becomes unusable due to a mechanical breakdown rather than an accident
• The replacement car extension was not added to the vehicle insurance policy
• The claim has not been approved by the insurer

FAQs on Replacement Cover Car Insurance in the UAE