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Insurance Policies for Car Rentals in Dubai?

rental car insurance
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Everything about Insurance Policies for Car Rentals in Dubai

If you operate a vehicle in the UAE, like in other countries, having car insurance is compulsory. When renting a car, it is crucial to verify the insurance. Insurance must meet your requirements.

What Is Rental Car Insurance?

Rental car insurance is the insurance coverage that protects you when renting a car. Always choose a car from a reliable rental car company, such as Moosa Rent a Car. Let’s explain a little bit:

When you rent a car from a location, you will get the option of adding insurance to your agreement. This insurance coverage provides protection and financial support. It helps to cover the costs of repairs, medical expenses, and liability claims.

Do I Really Need Insurance to Rent a Car?

For renting a car in Dubai, you typically need at least liability car insurance, which covers injuries and property damage. This type of insurance is mandatory as it covers the damage that occurs during rental time. In addition to liability insurance, it is advisable to have other forms of coverage to protect yourself. This includes coverage for repairing a rental car or covering your medical expenses in an accident.

However, you don’t necessarily have to purchase all these coverage types from the rental company. You may already have some coverage through existing policies, such as:

  •         Personal car insurance policy
  •         Credit card used to book the rental car
  •         Health insurance
  •         Travel Insurance
  •         Non-owner car insurance

If you already have one, you may not need to purchase duplicate coverage. On the other hand, if you lack coverage or if there are gaps in your coverage, it is advisable to purchase insurance. It will ensure that you are adequately protected.

Types of Rental Car Insurance

When renting a car in Dubai, you may be offered various insurance options by the rental car company. These insurance covers are designed to minimize the risks faced by the company and you. Here are the most common types of rental car insurance:

Collision Damage Waiver (CDW):

This coverage protects you from having to pay for any collision damages that occur to the rental car while it is in your possession. Under the terms of this cover, the rental car company waives their right to make you pay for the cost of repairing the damages. It occurs for as long as you pay the excess amount stated in the contract. CDW is the most common and recommended rental car insurance option.

Comprehensive Cover:

It provides protection for both cars and their passengers in the event of a car accident. Moreover, also covers incidents such as theft, fire, and accidental damages. While comprehensive insurance is more expensive, it offers additional benefits and extensive coverage.

Third-Party Liability Insurance:

The type of insurance covers damages and injuries caused to another vehicle and its occupants in the event of an accident. However, it does not provide coverage for your own vehicle. This type of insurance is the most affordable option and is required by authorities as a mandatory insurance requirement.

Personal Accident Insurance:

This coverage protects you and your passengers in the rental vehicle against an accident. Before purchasing this coverage, consider whether you already have sufficient medical insurance coverage. So, you don’t need this additional cover. If you are a visitor to the UAE and have travel insurance, it’s important to check if it covers such accidents. Always review the details of any insurance policy to ensure you have adequate coverage.

Super Collision Damage Waiver (SCDW):

It is an additional coverage option to the standard Collision Damage Waiver (CDW) insurance when renting a car. By accepting SCDW, the renter reduces their liability for damages to the rental vehicle to zero. This means that in the event of any damage to the vehicle, the renter is not required to pay anything out of pocket. SCDW provides an extra layer of protection and peace of mind for the renter. Thus, eliminating any financial responsibility for vehicle damages.

Miscellaneous coverage:

Miscellaneous coverage options are coverage choices that can be added to a rental car insurance policy. These options include:

Windscreen Glass Coverage:

This coverage protects against damages to the windscreen glass of the rental vehicle. It covers the costs of repairing or replacing the glass if it gets damaged during the rental period.

Non-Mechanical Breakdown Coverage:

This coverage applies to any non-mechanical breakdowns or failures of the rental vehicle during the rental period. It helps cover the costs of repairs or alternative transportation of the vehicle

Roadside Safety Net:

This coverage is designed to provide assistance to the customer while they are on the road or during the rental period. It includes services such as roadside assistance, fuel delivery, and jump-starts in case of a dead battery.

Flat or Damaged Tire Coverage:

This coverage specifically addresses flat tires or tire damage during the rental period. It waives any additional charges that customers may incur for tire repair or replacement. Thus, ensuring they are not responsible for these costs.

Note: Experts suggest that from all the types of coverage, fully comprehensive coverage is preferable.

How much does rental insurance cost in Dubai?

Car insurance in Dubai is affordable due to its compulsory nature. Its costs vary according to the type of car. These insurance plans are typically for a 12-month period. The monthly premiums range from Dh300 to Dh600, depending on the car and plan selected.

How do I get Car Rental Insurance in Dubai?

Here are the four main options available for insuring your rental car:

Insure online when you Book:

Pros: Lower prices compared to coverage offered directly by the rental company. It is convenient in comparison to rental companies.

Cons: Higher prices compared to standalone insurers.

Protect your rental directly with the rental company:

  •         Pros: No upfront payment is required in the event of damage. Reduced security deposit and insurance excess, the convenience of having the rental company as the insurer.
  •         Cons: Usually more expensive than coverage obtained from comparison sites or third-party insurers. There is no separate insurance company to assist with disputes.

Insure your Car through a third-party Insurer:

  •         Pros: Lower prices for excess protection insurance compared to additional coverage from comparison sites or rental companies.
  •         Cons: Payment to the rental company is required upfront in case of damage. No reduction in excess or deposit, reimbursement process is needed.

Don’t buy any additional insurance at all:

  •         Pros: No additional cost on top of the rental fee.
  •         Cons: Excess and deposit not protected or reduced. Responsibility for full repair costs if parts beyond the bodywork are damaged. No separate insurance company to assist with disputes.


When renting a car, ensure you have adequate insurance coverage. Evaluate existing coverage from personal policies and credit cards. Consider options such as liability insurance, CDW, SCDW, and miscellaneous coverage. Choose the best option based on your needs and circumstances. Research and make an informed decision to protect yourself while renting a car.


Are you adequately covered by rental car insurance?

Ensure you have the right coverage when renting a car. Understand what’s included in your rental agreement and consider additional coverage if needed.


Does your credit card provide rental car insurance?

Check your credit card benefits for coverage details. Be aware of limitations and exclusions, such as coverage for other vehicles and liability.


When should you purchase insurance from the rental company?

If you lack coverage from your credit card or personal insurance, consider buying insurance from the rental company. Supplemental liability or personal effects coverage may be necessary.


What is the difference between collision damage waiver (CDW) and loss damage waiver (LDW)?

CDW covers damage caused to the rental car in a collision. While LDW is a broader coverage that includes theft and other non-collision damages. Check with the rental company to understand the specific terms and coverage provided.


Is roadside assistance included in rental car insurance?

Roadside assistance is not included in rental car insurance, but some rental companies offer it as an additional service. You can also check if your personal auto insurance or roadside assistance membership covers rental cars.


Do I need to purchase insurance if I already have personal auto insurance?

It depends on your personal auto insurance policy. Review your policy to see if it covers rental cars and what the coverage limits are.


What is the rental car insurance coverage limit?

The coverage limit varies depending on the insurance policy and the rental car company. 


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AED 39 /day
AED 1070 /mo.
AED 49 /day
AED 1350 /mo.
AED 69 /day
AED 1370 /mo.