Could you get a replacement car after an accident?
If someone else caused the accident and you own a private vehicle, their Third Party policy gives you an allowance at the market rental rate, up to AED 300 a day for up to 15 days, or a similar car. On your own claim, the standard policy does not mention a replacement car.
The Third Party policy calls this a loss of use allowance, and also a substitute motor vehicle.1 It is one of the two unified policies, the standard wording UAE insurers must use.2
The other, the Loss and Damage policy, mentions the allowance only where someone else caused the accident.3
What do you get if someone else caused the accident?
A daily allowance, if you own a private vehicle. The rate follows the rental market for a similar car of the same make, up to AED 300 a day for up to 15 days.1
| Your question | What the policy says |
|---|---|
| What if you take cash? | No allowance if you choose cash compensation |
| When do the days start? | If the car goes to a repair shop, days count from delivery of the damaged vehicle, the accident report and the deed of title to the insurer |
| How much is it? | Per day, per damaged vehicle, at the prevailing rental price in that emirate for a similar vehicle of the same make. Up to AED 300 a day. Up to 15 days |
| Can you get a car instead? | If the insurer chooses not to pay the prevailing price, it provides a similar vehicle of the same make, in very good working condition, at your place of residence |
| Can your own insurer handle it? | If you hold loss and damage and third party insurance, you may claim from your own insurer, which recovers from the insurer of the person who caused the accident |
No excess can be taken from your compensation.1 Check that your ownership certificate shows the vehicle as private.4
Marker 3 locates the replacement car question. The rate is set by the rental market for a similar car of the same make, up to the AED 300 cap.
Hyundai Elantra, The New Elantra, UAE, Gamma II 1.5L CVT Standard. Length 4,710 mm, wheelbase 2,720 mm, height 1,430 mm. Numbers mark where each cover question attaches. They say nothing about what any policy covers. Stylised drawing from cited dimensions, not a manufacturer image.
Juma Al Majid Est. (official Hyundai UAE distributor), read 2026-11-04.
When do your allowance days start?
When three things reach the insurer, not on the date of the accident. They are the damaged vehicle, the accident report and the deed of title.1 The accident report guide covers getting the report. The claims process guide covers the rest of the claim.
Can you claim through your own insurer?
Yes, if you hold loss and damage and third party insurance. You may claim directly from your own insurer. It then recovers the amount from the insurer of the person who caused the accident.3,1 You can also claim from the at-fault insurer directly.1
If you hold loss and damage insurance only, ask your insurer whether this applies to you.
Do you get a replacement car on your own claim?
On your own claim, the Loss and Damage policy does not mention a replacement car or a daily allowance during repair. Your insurer’s obligations in it include repair, cash if agreed, replacement of the vehicle on total loss, and transport to the nearest repair shop.3 That does not tell you what any insurer’s Schedule says. Your Schedule states what applies to your policy.
Can you add a replacement car to your policy?
Ask your insurer. The route for extra cover is a rider, an add-on to your policy. The policy includes any additional cover agreed under it or its riders.3 The motor tariff, the regulator’s price rules, requires additional cover to carry an agreed additional premium and to be stated in clear wording, in a different colour or by addendum.5 See the unified motor policy guide for versions and rider rules.
Published add-ons run from 7 to 30 days, and most stop at the insurer’s offer on a total loss.6,7,8,9,10,11,12,13 Each applies only if it is on your Schedule or plan.
| Insurer and add-on | Limit | If your car is a total loss | Also check |
|---|---|---|---|
| GIG Gulf Prestige, hire car | Up to AED 1,500. No charges after 7 days | Until GIG Gulf offers to settle, if earlier | Must start within 48 hours. For you or your spouse. Credit card imprint |
| GIG Gulf Perfect, hire car | 7 days, 1.3 litre car, for an additional premium | Up to 7 days, or until GIG Gulf offers to settle | Must start within 48 hours. For you or your spouse. Credit card imprint |
| Liva, temporary rent-a-car | 10 days, or until repaired if earlier. Cash of up to AED 600 at its discretion if no car is available | Not stated | Fuel, Salik, parking and fines are yours |
| Oriental Insurance, hire car | 7 days each time your car is at the workshop on a valid claim | Up to 7 days, or until it offers to settle | Comprehensive policies only. Needs a police report. Its undated brochure names 2010 to 2011 hire cars, so confirm the current terms |
| QIC, rent-a-car | 10 calendar days in the policy period, at-fault claims only. Cash of AED 450 at its discretion if no car is available | Ends at 10 days, or when QIC offers to settle | Not for theft or recovery claims. Saloon of 1.2 to 1.6 litres |
| Sukoon, courtesy car (cash benefit) | Up to 7 days in the policy period, at the limit in your Schedule, 2 claims at most | Does not apply | Approved garage. Private, individually owned car |
| Sukoon, rent-a-car | 10 calendar days in the policy period | Ends at 10 days, or when Sukoon offers to settle | For you or your spouse. Saloon of 1.3 to 2.0 litres |
| Sukoon Privilege, courtesy car | 30 days or AED 10,000 per policy period | Does not apply | Similar model at its discretion. Approved garage |
| Watania Takaful, hire car | 7 days | Up to 7 days, or until it offers to settle | Must start within 48 hours. For you or your spouse. UAE only |
QIC’s add-on is for at-fault claims only and not for recovery claims. If someone else caused your accident, ask QIC how it treats the claim. All these insurers are on the Central Bank’s September 2026 register.14
What if your car is a total loss?
The policy does not say whether the allowance applies to a total loss, or when days would start.1 Add-ons on your own policy differ on this, as the add-on table above shows.
A separate rule covers late settlement on a total loss. If the insurer delays settlement for more than 15 days from complete claim documents without convincing justification, it must compensate the beneficiary of the cover for costs from being without the damaged vehicle.15
What if the policy does not answer your case?
Ask the insurer handling the claim to state its position in writing.
- Repairs over 15 days. The maximum period is 15 days. The policy does not mention any allowance after day 15.
- Company owner. The policy names the owner of a private motor vehicle. The policy does not say how a company owner is treated.
- Same make. The rate and any substitute refer to a similar vehicle of the same make. The policy does not say what happens if no vehicle of that make is available.
- Property limit. The limit for property damage is AED 2,000,000 per accident. The policy does not say whether the allowance counts towards that limit.
The small print
- The table. Its rows follow Third Party Chapter Two 1(d), rules First to Fifth, in order. The bar on any deductible from the injured third party’s compensation is Chapter Two para 2.1
- “Private” in the Arabic. The Arabic of Chapter Two 1(d) adds that the ownership certificate issued by the traffic department must show the vehicle as private.4 The application form lists Private as a use.
- Claiming through your own insurer. Loss and Damage Chapter One para 13 and Third Party Chapter Two 1(d) Fifth match in English.3,1 The Arabic of para 13 names insurance against loss and damage only.16 Para 13 applies where the holder is the affected third party, so someone else caused the accident. The direct claim against the at-fault insurer is Third Party Chapter One para 04.1
- Your own claim. The insurer’s obligations are in Chapter Two of the Loss and Damage policy. Para 13 is the only mention of a substitute vehicle in that policy. Chapter Four 01 excludes indirect losses to the insured. It does not name loss of use, and whether loss of use is an indirect loss is not stated.3
- Riders. Additional cover is in Chapter Two para 1 of the Loss and Damage policy.3 The tariff rule is Art 3(3).5
- Total loss. Rule Second addresses a car going to a repair shop.1 The late settlement rule is Decision 25 of 2016 Art 7(2), outside the policy text.15
- Same make. The Arabic word is “نوع”, which can also mean type.4
- Property limit. This is Third Party Chapter Two 1(c).1
- Versions. Both unified policies were consolidated on 18 January 2021. That is the version as of 4 November 2026. Both sit under Insurance Authority Decision 25 of 2016, effective 1 January 2017.3,1 Cabinet Resolution 174 of 2026 takes effect on 1 January 2027.17 Ask your insurer whether it changes these terms.
What the policy wording says
Document by document
| Document | Injured third party | Insured's own claim |
|---|---|---|
| Insurer riders and schedules | Not yet verified | Conditional11Add-on only. Limits vary by insurer. |
| Loss and Damage policy | Conditional3Chapter One para 13 lets the holder claim through their own insurer. | Not stated in the documents3 |
| Third Party policy | Conditional1Private vehicle owner. AED 300 a day, 15 days. None if cash is chosen. | Not stated in the documents1 |
Not stated in the documents does not mean the cover is absent. It means the reviewed document is silent.
Clause by clause
| Question and reading | Status | Source | Effective | Last checked |
|---|---|---|---|---|
| Who is entitled to the allowance?1The injured third party who owns a private vehicle. No allowance if cash compensation is chosen. | Conditional | Chapter Two 1(d)Unified policy (CBUAE Rulebook), Third Party policyv2 consolidated 2021-01-18 | 1 Jan 2017 | 4 Nov 2026 |
| What are the limits?1The rental rate of a similar vehicle of the same make in that emirate, up to AED 300 a day, for up to 15 days. | Conditional | Chapter Two 1(d) ThirdUnified policy (CBUAE Rulebook), Third Party policyv2 consolidated 2021-01-18 | 1 Jan 2017 | 4 Nov 2026 |
| Can the insurer supply a car instead?1If it chooses not to pay at the prevailing price, the insurer provides a similar vehicle of the same make at the injured party's place of residence. | Conditional | Chapter Two 1(d) FourthUnified policy (CBUAE Rulebook), Third Party policyv2 consolidated 2021-01-18 | 1 Jan 2017 | 4 Nov 2026 |
| Can a driver with both policies claim from their own insurer?3The affected third party may claim the allowance directly from their own company, which recovers from the insurer of the person who caused the accident. | Conditional | Chapter One para 13Unified policy (CBUAE Rulebook), Loss and Damage policyv2 consolidated 2021-01-18 | 1 Jan 2017 | 4 Nov 2026 |
| Does the text give a replacement car on the insured's own claim?3The insurer's obligations in Chapter Two do not mention a replacement car or a daily allowance. | Not stated in the documents | Chapter TwoUnified policy (CBUAE Rulebook), Loss and Damage policyv2 consolidated 2021-01-18 | 1 Jan 2017 | 4 Nov 2026 |
Readings are paraphrased unless set as a quotation.
How to read a status
- Explicitly included
- The policy document says this is covered.
- Conditional
- The policy document covers this only under stated conditions.
- Explicitly excluded
- The policy document says this is not covered.
- Not stated in the documents
- The policy documents do not mention this. This does not mean it is not covered.
- Not yet verified
- We do not have a document for this yet.
Sources
17
1CBUAE Rulebook, The Unified Motor Vehicle Insurance Policy Against Third Party Liability, under Insurance Authority Decision No. (25) of 2016, v2 consolidated 2021-01-18. Effective 1 Jan 2017. Last checked 4 Nov 2026. Source document: The Unified Motor Vehicle Insurance Policy Against Third Party Liability, under Insurance Authority Decision No. (25) of 2016
2Central Bank of the UAE Rulebook, Insurance Authority Board of Directors' Decision No. (25) of 2016 Pertinent to Regulation of the Unified Motor Vehicle Insurance Policies, v2 consolidated 2021-01-18. Article 2. Effective 1 Jan 2017. Last checked 4 Nov 2026. Source document: Insurance Authority Board of Directors' Decision No. (25) of 2016 Pertinent to Regulation of the Unified Motor Vehicle Insurance Policies
3CBUAE Rulebook, The Unified Motor Vehicle Insurance Policy Against Loss and Damage, under Insurance Authority Decision No. (25) of 2016, v2 consolidated 2021-01-18. Effective 1 Jan 2017. Last checked 4 Nov 2026. Source document: The Unified Motor Vehicle Insurance Policy Against Loss and Damage, under Insurance Authority Decision No. (25) of 2016
4CBUAE Rulebook, The Unified Motor Vehicle Insurance Policy Against Third Party Liability, Arabic text, v2 consolidated 2021-01-18. Effective 1 Jan 2017. Last checked 4 Nov 2026. Source document: The Unified Motor Vehicle Insurance Policy Against Third Party Liability, Arabic text
5CBUAE Rulebook, Insurance Authority Board of Directors' Decision No. (30) of 2016 Concerning issuing Regulation for Motor Vehicle Insurance Tariffs, Labelled version 2, consolidated 2018-01-01. Effective 1 Jan 2017. Last checked 4 Nov 2026. Source document: Insurance Authority Board of Directors' Decision No. (30) of 2016 Concerning issuing Regulation for Motor Vehicle Insurance Tariffs
6GIG Gulf, Motor Prestige policy handbook, File name 2024_11. Last checked 6 Nov 2026. Source document: Motor Prestige policy handbook
7GIG Gulf, Motor Perfect policy handbook, File name 2024_10. Last checked 6 Nov 2026. Source document: Motor Perfect policy handbook
8Liva Insurance, Motor Insurance Policy Booklet, comprehensive wording, File name dated 29 April 2024. Last checked 6 Nov 2026. Source document: Motor Insurance Policy Booklet, comprehensive wording
9The Oriental Insurance Company, OIC U.A.E. Hire Car Benefit Program. Last checked 6 Nov 2026. Source document: OIC U.A.E. Hire Car Benefit Program
10QIC, Motor Comprehensive Policy Wording 2026, File title V6, file name V5. Last checked 6 Nov 2026. Source document: Motor Comprehensive Policy Wording 2026
11Sukoon Insurance PJSC, Motor comprehensive terms and conditions, Print code 11/2024. Last checked 6 Nov 2026. Source document: Motor comprehensive terms and conditions
12Sukoon Insurance PJSC, Privilege motor terms and conditions, Print code 03/2026. Last checked 6 Nov 2026. Source document: Privilege motor terms and conditions
13Watania Takaful, published by Dubai Islamic Bank, Motor takaful terms and conditions. Last checked 6 Nov 2026. Source document: Motor takaful terms and conditions
14Central Bank of the UAE, CB Register September of 2026. Last checked 6 Nov 2026. Source document: CB Register September of 2026
15CBUAE Rulebook, Insurance Authority Board of Directors' Decision No. (25) of 2016 Pertinent to Regulation of the Unified Motor Vehicle Insurance Policies, v2 consolidated 2021-01-18. Article 7. Effective 1 Jan 2017. Last checked 4 Nov 2026. Source document: Insurance Authority Board of Directors' Decision No. (25) of 2016 Pertinent to Regulation of the Unified Motor Vehicle Insurance Policies
16CBUAE Rulebook, The Unified Motor Vehicle Insurance Policy Against Loss and Damage, Arabic text, v2 consolidated 2021-01-18. Effective 1 Jan 2017. Last checked 4 Nov 2026. Source document: The Unified Motor Vehicle Insurance Policy Against Loss and Damage, Arabic text
17UAE Legislation portal, Cabinet Resolution 174 of 2026. Effective 1 Jan 2027. Last checked 4 Nov 2026. Source document: Cabinet Resolution 174 of 2026
- Owner
- Carinsurance.ae research team
- Last review
- Next review due
- 5 May 2027
- Status
- Published