Rental car insurance is broken in Dubai. After being the victim of a hit and run, I believe there's a business opportunity to make it better.
Hit and Run
I recently rented a car to play host during a family visit. Being my first time driving in Dubai, I got the car a week before their arrival so I could familiarize myself with the roads and overall system.
On the second day, I noticed a new scratch on the front bumper which wasn't there during my inspection. It was deep enough that the paint had peeled off. I was sure it would be noticed when I returned the car. The lady who rented out the car had been pretty thorough about marking existing scratches. I checked the windshield for a note. Nothing. I was officially the victim of my first hit and run in Dubai.
If this was in my home country, I would've just continued on with my day. But Dubai is different. Here, even though I paid for maximum coverage, which I always do with rental cars, I am only covered if I provide an official police report. In the event of an accident with another vehicle, the guilty party files the report. If I am the sole party (ex. I drive into a wall), I have to file the report. And in a hit and run, I still have to file the report even though I'm not at fault. Filing a report is easy; Dubai has an app for it. However, filing a police report is not free. It costs 400 Dhs which is about 100 euros. And this cost is not covered by the insurance.
Although it feels a bit strange, I don't particularly mind that reporting a crime in Dubai costs money; since Dubai doesn't tax its residents, one cannot expect the same freebies that tax dollars would subsidize in other countries. I can also get over the hit and run. Shit happens. And this isn't even my car. But what really irks me is that despite paying for maximum coverage, I am still liable to pay for the police report. What if two days from now there's another hit and run? That's another police report. Another 100 euros gone.
The main reason I get maximum rental car insurance is for 100% peace of mind. So I don't have to worry about hit and runs, trust fund kids driving rash, and the occasional mistake on my end. If I'm not getting that peace of mind, then I'm not getting my money's worth. I would gladly pay extra for an addon that would cover police report fees. I'm sure I'm not alone.
Resolution
Due to some luck and ingenuity, I didn't have to shell out a dime.
The hit happened in the cramped parking lot in front of my apartment building. So I approached building security and explained the situation to them. I asked them whether something like this would've been captured by the CCTV. The head of security followed me to my car and after inspecting the location and damage said yes. He pointed to the camera which would've caught it. But he said it would take a few hours to go through the footage and they would only be able to share it with the police. He gave me his word that the security guy on the night shift would take a look. I had him introduce me to him and thanked him in advance for taking on this arduous task.
Early next morning, I received a text from the security guy saying he found the culprit. Since he couldn't share the footage with me on Whatsapp, I ran down to the lobby and saw it on his monitor. He said with pride it had taken him most of the night to comb through the footage. I thanked him again. In the reply, the culprit hadn't even gotten out of his car to inspect the damage. He just sheepishly drove away after denting my car. But the license plate was clearly visible and I committed it to memory. I felt like a private detective in the crime novels I sometimes read.
Later that day, I drove to the police station in my district. I wasn't sure what to expect. Once again, I found it strange, but forgivable, that I had to pay for parking at the police station. There were also men standing around poised to wash cars for a fee. These small expenditures don't break the bank, but they continue to reinforce in my mind the values and principles that make Dubai the capitalist society it is. Entering the police station was like entering a modern McDonalds with the red and yellow color scheme swapped out for white and green. A man in a white kandoura directed visitors to one of two large touch screens. The touch screen asked me to categorize the problem, present my Emirates ID, and then issued a ticket. The man then eyed the ticket and directed me to the appropriate section of the building, in my case road / traffic disputes.
I sat in the waiting area for about 30 minutes before I was seen. In that time, I made a few observations. Half dozen stern-looking men in dark green police uniforms sat behind computer screens, dealing with civilians one-on-one. A man in a white kandoura walked around with a pleasant smile. He asked civilians one by one the reason for their visit. He seemed to have a strong command of English but his Arabic accent was unmistakable. I think his purpose was to resolve disputes before they reached the uniformed officers. I think this because a passionate dispute between two laborers broke out near where I was sitting. The white kandoura man stood in between them with a placating smile, like a parent between two children. Eventually they simmered down and the left. The dispute was resolved with words, no paperwork needed.
Sitting next to me was an American who was there to get an official police report. Apparently he needed to show it to the mechanics to fix his car. We exchanged stories, and he asked me how long I planned to be in Dubai. I said Dubai is a pitstop for me, so just one year. 'That's what they all say', he said. He's been in Dubai for a decade. I wonder if his response would be different now due to the rising tensions with Iran.
Mid conversation, a caucasian male briskly walked past us straight into the room with the uniformed officers. He was immediately attended to. I gave the American a questioning look. 'He probably has more wasta', he said. Until then, I had only read about wasta in books about Dubai. It means 'influence' or 'clout'. I had never seen it in practice until that day. I think some form of wasta exists in every country.
Eventually my turn came. I took a seat in front of the uniformed officer and explained the situation. He asked whether I had CCTV footage. I said yes and gave him the phone number of my building security. He called them in front of me, played the clip on his computer, and clicked around some more, presumably searching his database for the owner of that license plate. Then he called the owner and spoke in Arabic for a few minutes. He put the phone down and said in simple English, 'Here's the man's number. Call him now, he's expecting your call. Explain the situation to him, he will cooperate'. Seems like their preferred approach is to resolve disputes organically and leave official paperwork as a last resort.
I gave my thanks and left. I gave the guy a call and told him what I needed from him: for him to file a police report so I could show it to my rental insurance so I wouldn't be liable for the damage. He asked how bad the damage was and explained that his 'friend' was driving the car that day. I sent him the pics, told him I'm not sure how much it would cost to fix, but a police report would make that irrelevant. He seemed taken aback that filing a police report costs 400 Dhs and asserted that the cost to fix might be less than 400 Dhs in which case he could just transfer me the money. I didn't want to go down the route of getting a quote, sending messages back and forth, and playing the middle man. My patience was already wearing thin from squandering half my day to chase this guy down. I wanted to close the issue and move on. But he pleaded and said he would fully cooperate either way, just that 400 Dhs was a hefty price tag for the damage. I said I'll get back to him.
Over the next 24 hours, I got in touch with my rental company, explained the situation, sent them the pics, got a quote, and forwarded the same to the guy along with my bank details. The guy transferred the sum within 24 hours. At least he kept his word and I didn't have to keep following up with him. The total cost including labor came to 360 Dhs.
Takeaway
Who was the biggest loser in this whole affair? Me. The rental company got it's money. The guy paid for his 'friend's' mistake. I didn't get anything*. I lost half a day of work. I took on the brunt of the stress. I still don't have peace of mind because the exact same thing could happen tomorrow and I may not be so lucky with the CCTV. And I had to go through this despite paying for maximum insurance coverage.
This is why I believe the rental car system in Dubai is not as optimized as it can be. Rental car companies can charge more for a comprehensive insurance that covers police report fees or a third party addon that does the same.
* Except the experience and grist for my mill, so I'm not actually bitter.