If you’re planning to drive in the Emirates, understanding rental cover in UAE is essential. Whether you’re here short-term or settling in as an expat, the right insurance can protect you from unexpected accidents, costs, and legal headaches. This guide breaks down what rental cover includes, who needs it, how much it costs, and where to get it in 2025.
What is Rental Cover in the UAE?
Rental cover in UAE refers to insurance policies that protect renters from financial loss due to accidents, theft, or damage to the rental vehicle. Most car rental companies include a basic Collision Damage Waiver (CDW), but you might still be liable for certain damages unless you opt for full cover.
Types of Rental Car Insurance in the UAE
Understanding your options helps avoid costly surprises, especially during accidents or theft. Here’s a breakdown of the most common coverage types:
1. Third-Party Liability (TPL)
Required by law.
Covers: Injury/damage to other drivers, vehicles, or property.
Does NOT cover: Your rental car, your own injuries.
Always included in the base rental price.
2. Collision Damage Waiver (CDW)
Reduces your financial liability for damage to the rental car during a collision.
- Average Daily Cost: AED 15–50
- Usually includes a deductible (often AED 1,500–3,000)
3. Super Collision Damage Waiver (SCDW)
Also called Zero Excess Insurance.
- Eliminates or drastically reduces your deductible
- Ideal for stress-free travel, especially for new drivers or those unfamiliar with UAE roads
Average Daily Cost: AED 30–100
4. Theft Protection (TP)
Covers theft of the rental car (not personal belongings inside it).
- Low theft rates in UAE, but helpful for long-term rentals or trips outside urban areas
- Often bundled with CDW
5. Personal Accident Insurance (PAI)
Covers medical expenses or accidental death of the driver and passengers.
- Crucial if your personal health insurance excludes road incidents
- Average Daily Cost: AED 10–20
6. Windscreen, Tyres & Undercarriage Protection
These are usually excluded from CDW and SCDW policies.
- Valuable if you plan on road trips to the desert or mountains
- Average Daily Cost: AED 10–50
How Much Does Rental Cover Cost in UAE?
Rental cover pricing in the UAE depends on the type of vehicle, rental duration, and the level of coverage you choose:
| Insurance Type | Estimated Daily Cost (AED) |
|---|---|
| Third-Party Liability (TPL) | Included in rental price |
| Collision Damage Waiver (CDW) | 15 – 50 |
| Super CDW / Zero Excess | 30 – 100 |
| Theft Protection | Often bundled with CDW |
| Personal Accident Insurance (PAI) | 10 – 20 |
| Tyres/Windscreen/Undercarriage Cover | 10 – 50 |
Some companies offer bundled insurance packages or discounts for booking online.
What About Credit Card Rental Insurance?
Many premium cards (like Visa Infinite or MasterCard World Elite) offer complimentary rental insurance, especially covering CDW.
But watch out for:
- Exclusions: Luxury cars, SUVs, off-road use, or rentals over 30 days
- Lack of Third-Party Cover: Most cards don’t offer TPL
- Complicated Claims Process: Claims are often processed internationally, which may delay reimbursements
Tip:
If you plan to rely on your credit card, get written confirmation from your provider about what’s covered in the UAE, and keep a copy with you.
How to Choose the Right Rental Insurance in the UAE
Here’s how to assess your needs and avoid overpaying:
1. Understand What’s Already Covered
Check:
- Does your health insurance include car accidents?
- Does your credit card offer CDW?
- Do you have a travel policy that overlaps?
2. Think About Where You’ll Drive
- City only? CDW may be enough.
- Long desert drives? Add windscreen and tyre cover.
- Going to Abu Dhabi or Ras Al Khaimah? Consider roadside assistance add-ons.
3. Calculate Risk vs Cost
SCDW may cost AED 50/day but could save thousands if something happens. Choose based on your risk tolerance.
4. Always Read the Fine Print
Common exclusions:
- Driving into Oman without permission
- Damage caused by unauthorized drivers
- Drinking and driving (automatic insurance void)
Tips Before You Drive Off
- Take photos/videos of the car (all sides) before leaving the lot
- Keep all insurance documents printed or stored digitally
- Save emergency numbers: rental agency, local police (999), ambulance (998)
- Don’t allow anyone not listed in the agreement to drive
- Use Google Maps or Waze—Dubai roads can be confusing due to ongoing construction
Useful Resources
To learn more about UAE rental regulations, you can visit the official RTA website and the official UAE police traffic services website. If you’d like to compare coverage options, platforms like Yalla Compare can help
FAQ – Rental Car Insurance in UAE
1. Is rental car insurance mandatory in the UAE?
Yes. Third-Party Liability (TPL) is mandatory and comes with every rental by law.
2. Should I get additional coverage beyond TPL?
Yes, especially CDW or SCDW. TPL doesn’t cover your car or injuries to you/passengers.
3. Can I rely on my credit card for insurance?
Possibly, but check limitations. Most credit cards don’t cover third-party damage or all vehicle types.
4. Does insurance cover trips to Oman?
Not always. Confirm with the rental company and get a NOC (No Objection Certificate) if crossing borders.
5. What happens if I damage the car without SCDW?
You’ll be liable for the deductible listed in the agreement, which can run into thousands of dirhams.
