What is Third-Party Liability (TPL) Car Rental Insurance?

Have you encountered the term "third-party liability insurance" while renting a car? Are you aware of how it benefits you? If you're seeking answers, you've come to the correct place. In this article, we'll navigate through its coverage, limitations, costs, and significance in Dubai's rental scene.

What is third-party insurance (TPL)?

Third-party insurance is a type of liability insurance that protects the second party (renter) against the claims of a third party for their physical or property damage. This insurance covers third-party vehicle damage, medical bills, lost wages, and so on. It's a renter's safety net against the damages she or he has caused to a third party.

TPL is an insurance policy that an automobile rental company purchases in bundles from insurance companies for their rentals. A renter doesn't need to purchase it separately from a different company.

What does third-party insurance mean for a Dubai rental car?

A basic third-party liability insurance policy is mandatory in the Emirates. This insurance policy is all you need to drive a rental in Dubai. All Dubai rental companies are required to include this policy in all their rental packages. Renters don't need to worry about their arrangements.

You get a pre-setup TPL with your rental car in Dubai. All rental packages already include the TPL's price. You need to pay extra for it, unlike other insurance-like agreements like CDW and LDW.

How much does third-party liability insurance cost?

You don't need to purchase the TPL separately, you don't have to worry about the cost. Your rental fee already covers the cost. This is applicable only in the Emirates. We don't speak for other countries' rental industries.

Who are the parties involved in third-party insurance?

The Dubai car rental industry operates a bit differently from the rest of the world. The insurance company and the rental agency are the first parties involved. In Dubai's rental scene, you can consider the rental company to be the first party. They offer you an insurance policy.

You, the renter, become the second party. Your liability insurance protects you against a third party's claim for your mistake. For example, when you hit a vehicle during your rental, the TPL pays for the vehicle's damage repairs and the injured person's hospital fees.

The vehicle and the person you caused damage to are now considered third parties. This liability insurance covers their claims. This is why we refer to it as "third-party liability insurance."

The agreement between the rental company and the actual insurance company is beyond the renter. It's not your business. Throughout your rental, you are insured. That is all that matters.

What does a TPL cover during your rental?

The TPL, as its name implies, covers everything pertaining to a third party involved in the accident. It protects you, the renter, from any financial risks that may arise for the party you've caused harm to. You will receive comprehensive financial protection, covering everything from hospital expenses and vehicle repairs to the injured party's wages.

What doesn't third-party liability insurance cover?

The third-party liability insurance policy handles only third-party-related issues. It doesn't cover your rental's damage, you and your passenger's medical bills, etc. Like all insurance policies, the TPL also comes with limitations.

Despite TPL being mandatory, the rental company may nullify your TPL coverage if you violate the rental terms and conditions. The TPL does not cover accidents caused by driving under the influence or using the car for illegal activities.

Do I need extra insurance when renting a car, besides the TPL?

As mentioned earlier, TPL is all you need to drive your rental in the Emirates. However, additional insurance or similar arrangements provide complete coverage if you get into an accident during your rental.

You can get a loss damage waiver (LDW) or a collision damage waiver (CDW) for your rental vehicle. They offer almost a complete waiver of your rental vehicle's repairs. Personal accident insurance (PAI) is suitable for you and your passenger's health benefits.

Supplemental liability insurance (SLI) or additional liability insurance (ALI) are add-on coverages that expand third-party liability insurance (TPL) coverage.

We recommend having comprehensive coverage during your rental. But it is up to you. You are free to make your own decision.

Bottomline

Third-party liability insurance is an integral aspect of Dubai car rental. Your rental packages include this insurance policy. It's in accordance with the UAE's local regulations; rental companies should provide you with this policy. It will safeguard you against financial risks related to damages you've caused to any third party, vehicle, people, or property. All our rental packages include this policy, so you don't have to purchase it separately.

FAQ:

Is TPL required?

Yes, third-party insurance (TPL) is mandatory for all vehicles in the UAE. It's the government's standard rule that everyone must follow. All of our rentals come with this first-hand insurance policy. It protects you from potential financial risks during your rental, providing peace of mind.

What is included in TPL?

TPL includes financial coverage for third-party vehicles, property damages, driver and passenger injuries, hospital fees, medicines, and even the injured's wages. However, the level of TPL dictates what it covers during your rental. Before signing the rental agreement, please consult with your rental company.

Does my rental in Dubai come with a TPL?

Yes, your rental in Dubai comes with pre-allotted third-party liability insurance (TPL). The UAE government mandates its compulsory inclusion in rental packages. It promotes financial coverage against unfortunate circumstances.