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Common belief is that renting a car often entails hidden charges. On the contrary, we say no! An implicit charge can only be referred to as a hidden one if it is not clearly stipulated in the contract. Or not explained by the amiable car rental company staff!
This article offers a guide to typical costs of hiring a car in Dubai and other emirates of the UAE. These costs are also comparable to other countries. In Dubai or UAE, getting an auto for hire would be less expensive than relying on cabs. Here are some regular expenses that relate to employing cars in Dubai. All these “hidden charges” are stipulated in your vehicle hiring agreement. Moreover, they are usually explained by service providers prior to finalization of the deal.
Salik/Toll Charges
Explanation: Salik comprises an automatic toll collection system. It is based on several gates located throughout Dubai City. Where vehicles crossing through are charged automatically.
Cost: Normally, AED 5 per crossing applies for rental cars in most firms.
Management Tips:
- Plan Routes: Using navigation applications. It will suggest alternative routes bypassing any unnecessary tolls.
- Review Agreement: Ensure transparency and avoid unexpected costs. Read out the rental agreements’ Salik charges details carefully.
Traffic Fines
Common Violations:
- Speeding: Breaking speed regulations for various road sections.
- Illegal Parking: Unauthorized parking areas or none payment for parking space used.
- Mobile Phone Use: No hands-free systems when you use a mobile phone while driving.
Additional Fees: Often there is a service fee charged by rent-a-car companies per ticket. It is processed for compensation ranging from AED 20-50.
Avoidance Tips:
- Adhere to Speed Limits: Stick within set speed limits posted along roads and camera surveillance points.
- Use Parking Apps: Employ parking apps which assist in identifying legitimate parking areas. You can also make payment for parking spaces from that. For example, such apps like RTA Dubai or mParking may come handy at this point.
- Refrain from Phone Use: Do not ever use your phone when driving. Instead buy a hands-free device if need be.
Insurance Charges
Explanation: Insurance is essential for covering against potential risks and damages that may occur. Although there might be basic insurance coverage, extra protection could be required.
Types of Insurance:
- Collision Damage Waiver (CDW): Damages to the rental vehicle are covered.
- Personal Accident Insurance: Medical expenses incurred by drivers and passengers are catered for.
- Theft Protection: Stolen rental cars are accounted for.
Cost: Insurance prices range depending on type. The amount of coverage ranges from AED 50 to AED 200 per day.
Management Tips:
- Evaluate Needs: Determine necessary coverage versus superfluous insurance.
- Check Existing Policies: Check if you have your own car insurance or credit card. It will also provide rental car coverage.
Fuel Charges
Explanation: Rental vehicles usually come with full tanks of gas. They are supposed to be returned with the same amount of fuel in them.
Cost: In case you return it with less petrol, the company may charge you refueling fees. It will be more than local petrol stations do.
Management Tips:
- Refuel Before Return: Top up the tank before taking back the vehicle. As this will save you from additional costs attached to it in the form of fines related to fueling.
- Keep Receipts: Keep fuel receipts after filling your tank. It is done in order to prove that you have paid for it. It should be solved before arising of concern or even before returning a hired car like this one.
Additional Driver Fees
Explanation: If more than one person is going to drive the rented car, an additional driver fee is applied.
Cost: The cost ranges from AED 20-50 per day per additional driver in most cases.
Management Tips:
- Minimize Drivers: Keep the number of extra drivers down to cut on costs.
- Agreement Inclusion: Make sure each additional driver is mentioned in the rental agreement. So that insurance problems can be avoided.
Late Return Fees
Explanation: Late car return beyond agreed time will attract late fees.
Costs: Late return charges usually are charged per hour. It can rise even above daily rates when grossly delayed.
Management Tips:
- Plan Ahead: Plan your schedule so as to get back the car on time.
- Communicate: If there is any possibility of being late, notify the car rental agency before-hand. Do the negotiations towards an extension.
Additional Amenity Charges
Explanation: These are fees paid for optional devices like GPS, baby seats, Wi-Fi gadgets and more.
Costs: Usually additional gear costs around AED 10 – 50 a day.
Management Tips:
- Evaluate Necessity: Rent only what you need.
- Compare Prices: Find out if it’s cheaper to use your own equipment. Instead of renting one locally at the destination point or before leaving home.
Extra Mileage Charges
Limits: Most car rentals come with daily, weekly, or monthly mileage limits. This can lead to extra charges if exceeded.
Costs: Going beyond the allowed number of miles usually results in fees. It ranges from AED 0.50 to AED 1 per an additional kilometer driven.
Avoidance Tips:
- Estimate Travel Distance: Before renting a vehicle, try estimating how long it will take you. Also decide which distance is best for a certain rate of miles.
- Consider Unlimited Mileage: If you are planning on driving long distances then go for unlimited mileage. As this will enable you to avoid paying anything extra.
Accident and Damage Charges
Insurance: The rental agreement usually includes basic insurance coverage. However, if you cause an accident, you may be liable for excess charges starting from $1000.
Documentation: Make sure all previous damages were recorded prior by taking pictures. Generally, insurance companies may claim damage charges at return time to deny their client’s full refund.
Avoidance Tips:
- Opt for Comprehensive Insurance: When accidents happen, try comprehensive insurance coverage. It will protect one against high deductibles arising from the same accidents. Opting for comprehensive insurance would be a good idea if one does not want any expensive surprises.
- Be Cautious: You should be careful while driving and follow road rules. Since this helps in reducing chances of being involved in an accident.
Additional Charges
Calculation: Rental periods usually are based on twenty-four hours at a time. Therefore, if you rent a car at 10:00 AM, it means that by 10 in the morning you should have returned it.
Costs: In case you go beyond 24-hour rental period then an additional day will attract more charges. This can increase your overall rental costs significantly.
Grace Periods: At times, some car hire companies do offer grace periods of up to two hours. Within which one can return the car without being charged for another day. However, this information should be verified from your particular contract.
Value Added Tax (VAT)
Overview: In UAE a 5% Value Added Tax (VAT) is applicable to all car rental charges.
Inclusion: Always ensure that VAT is included in the quoted rental price. So as not to incur any costs during payment. Whenever you hire a car, ask if the VAT is included in the initial price given to you by the company.
Tips for Avoiding Additional Charges
Read the Rental Agreement Carefully
Make sure you understand all of the clauses including maximum mileage and other extra charges
Inspect the Vehicle
Before you drive off, look at every part of your vehicle for any existing damages and take pictures. This will help prevent disputes about damages when taking back the rented car.
Plan Your Routes
Use navigation apps to plan routes that minimize toll charges (Salik) and avoid redundant crossings. Get to know Salik gate locations so as to manage the expense of toll.
Adhere to Speed Limits and Traffic Laws
Prevent traffic fines by obeying the speed limit. Use designated parking slots and not use your phone while driving.
Return the Car on Time
To avoid incurring additional day charges stick to the return time agreed upon. Check also if there is a grace period offered by your rental company and act accordingly.
Refuel Before Returning
Make sure that you refill your fuel tank before you give back the car. Otherwise, you will be charged highly for refueling it by your rental company. Keep fuel receipts as evidence just in case.
Consider Unlimited Mileage Options
For people planning long drives, they can book rental packages. These come with unlimited mileage so as not to incur extra mileage fees.
Verify Insurance Coverage
Know the insurance coverage included and opt for more coverage if needed. It will minimize your personal expenses after an accident occurs.
Limit Additional Drivers
In case it is possible, keep additional drivers at minimum so as not to spend more on driver’s fee. Make sure each driver appears on this agreement form.
Ask About VAT
Find out from your car hire provider whether their price quote has included 5% VAT or not. Otherwise, this could be an unpleasant surprise at the time of payment.
Avoid Unauthorized Modifications
Do not do any changes on a vehicle such as putting stickers or altering its interior. Because these are other costs which may apply later.
By following these tips, you effectively handle Dubai’s car leasing without unexpected charges occurring
Summary
Understanding these additional potential costs can help you better control your car rental budget. Make sure you read through the contract very carefully. Ask the service provider for a comprehensive explanation about all possible expenses involved. Thus, ensuring a smooth and cost-effective rent experience.
