Due to the popularity of car rental companies, people now rent cars more often. Be it a road trip, business trip, or day-to-day chores, people have started relying on car rental companies. These companies offer a diverse and varied range of vehicles to their clients. You can hire or book any vehicle for as long as you want. These cars come with insurance and security deposits. As you know that luxury car rentals provide insurance coverage on their automobiles and also ask for security deposits for mutual safety and to avoid permanent damages on both sides. Before renting a car you should be aware of these insurance and security deposit policies. Here in this article, you get to know everything about insurance policies and deposits or renting luxury cars.

What is a Security Deposit?

Most luxury car rental asks for security deposits before they let you rent a luxury car in Dubai. Security deposit is an amount that one has to pay before renting a vehicle, if the car will be brought back with safety and without any damage then the company will return the amount. If the vehicle gets into minor damage or if the car returned late then a certain amount will be deducted from the security deposit. The security deposit must be paid with the driver’s credit card and the card should not be expired and must have the required amount in it. The purpose of any car rental company to ask for a security deposit is:

• To ensure the safety of their vehicle
• To develop the understanding of mutual responsibility
• Protect themselves from the cost of any damage to the uninsured part of the car.

What is an Insurance policy on a car rental?

Car rental companies always emphasize selling car rental insurance when you are renting a car from them. It is for the benefit of the company and for the clients. Whenever you rent a car always give a thorough thought to the company’s insurance policies. Insurance can help you not to get any mishaps or troubles. By insuring a luxury car or vehicle you can drive the vehicle without getting worried but again don’t just sign up for anything, first have look at every option and then decide accordingly.

If you have your own insurance coverage then you don’t need to sign an agreement with a car rental company on insurance. Check out your insurance and if it is enough then there is no need to buy another. Always read terms and conditions, get a comprehensive understanding of their policies then do whatever you feel best at that time. All car rental companies offer basic insurance coverage on a rented car. If you get into an accident in which you are not at fault, you will be covered but an authentically detailed police report will be required.

Types of Insurances:

There are many types of insurances that companies provide. Some luxury car rental in Dubai only provide CWD car insurance and some provide liability coverage. It varies from company to company, some car rental companies in Dubai provide all kinds of insurances to their customers.

1. Liability Insurance

Liability insurance applies only when someone is hurt by your property or you damaged anyone’s property unintentionally. In this case, car rental companies offer coverage to their clients if the mishap happened accidentally.  If you have cost any damage to other people or their property with your rented car unintentionally then the car rental company is bound to cover you with insurance. If you already have liability insurance you don’t have to sign up for the insurance the luxury car rental is providing.

2. Collision Damage Waiver (CDW)

Collision damage waiver is not exactly insurance but in UAE many car rental companies offer CDW on any damage to the car. If the rented vehicle gets into an accident the company will pay some of the amounts, the driver will be responsible for the rest.

3. Loss Damage Waiver (LDW)

This is the kind of insurance that will only apply if your car gets stolen or lost. The insurance is for theft protection. The company will cover it if your rented vehicle gets lost or stolen during your rental period. Many car rental companies provide LDW and CDW insurance together. It is wise to buy the LDW insurance for rented cars.

4. Personal accident insurance

Personal accident insurance pays for the injuries that happened during a car crash. If you already have health insurance you don’t need to buy this insurance, you can simply decline the offer. However, this insurance covers ambulance and medical bills. If you don’t have health insurance then you definitely buy this one but make sure that it is adequate and covers most of the medical payments.

These certain important things you need to know about insurance and security deposit before renting a luxury vehicle in Dubai. These insurance policies are developed for the safety of customers. Before renting a car do give it a look for a better understanding and if its suits you, you should sign the agreement as it will be safe and secure in the longer run. Contact the nearest luxury car rental dubai and book a ride with suitable insurance coverage and a reasonable security deposit to enjoy your trips without any hassle.