UAE Rental Cars Insurance-Everything You Need to Know

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Planning to Rent a Car in the UAE?

Don’t get tricked into overspending on insurance. Here’s our guide to find the best car insurance for your needs and how to avoid duplication of coverage.

There is no overestimating the importance of rental car insurance, both in terms of minimizing financial risk and the peace of mind it affords. But the kind of coverage you need depends on a lot of factors and any overspending in this area stems only from lack of knowledge.

Clearly, you are looking to get the best deal for car hire without compromising your financial well-being. But if you often find yourself falling victim to hard selling at rental desks, it is essential that you educate yourself in the science of obtaining a car rental insurance.

Understanding the Types of Rental Car Insurance:

Insurance companies in the United Arab Emirates provide many insurance policies of different names such as silver, gold or platinum coverage. But these names do not reflect the main types of car insurance.

In the UAE, the law requires rental companies to provide insurance inclusive of the rental price. It pays to check what is included and supplements it with optional covers if required. There are 4 optional rental insurances available:


  1. Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) – These are technical ‘waivers’ and not insurance products. They are basically designed to relieve the renters of their financial responsibility if the hired car is damaged or stolen.
  2. Liability Insurance – This provides higher supplemental liability limits for adequate protection.
  3. Personal Accident Insurance – This covers the renter and the passengers against medical and ambulance costs in case of a crash and also provides death benefits.
  4. Personal Effects Cover – This provides protection against theft of personal belongings from the rental car, up to a set insurance limit.


How to Get Renter’s Insurance?


Figuring out where you are already covered and what extent of cover you need ahead of time makes the process of obtaining insurance easier.

Here are the steps to follow:

  1. Evaluate your credit card benefits and other insurance policies like medical, liability, car and homeowner’s to find out if and to what extent you are already covered for car hire.

Do your research regarding the types of car renter’s policies to understand if you require more coverage.

  1. Shop around and compare rates at different car rental websites. Luxury Car Rental is a popular car rental company that offers free delivery, 24×7 customer support, and a comprehensive insurance cover.

You can also opt for any missing covers directly from the rental desk should you choose to hire your car on location.


It should be noted that rental car companies, besides charging you for repairs, can also charge you for the loss of use to their vehicle, diminished value, towing and administrative fee associated with claims. A comprehensive policy can guard you against these charges so make sure you are adequately covered.

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Below is our checklist of some essential features that a good rental car insurance policy must include.
  • Windscreen, windows, mirrors, tires, engine and body damage cover
  • Cover for loss or damage to personal belongings
  • Personal accident cover
  • Car rescue and breakdown cover
  • Loss or theft of keys
  • Cover for legal expenses


What cases are not covered by the Rental Car Insurance policy?

  • Covering damage caused by theft, such as compensation for the cost of stolen items or damage caused by acts of vandalism.
  • Covering damage caused by fire accidents, whether accidental or due to natural factors.
  • Damage that leads to deaths or physical damage to others.
  • Covering the costs of treating the driver and passengers of the insured car in case of injuries resulting from a traffic accident.
  • Expand the geographic coverage and the possibility of adding the Sultanate of Oman to the geographical scope covered by the policy.
  • Providing roadside assistance such as recharging the battery, towing the vehicle, changing tires, opening the vehicle in case of loss of keys or refueling the vehicle if it runs out of fuel on the road.
  • Covering the damage caused by off-road driving as stipulated in the insurance policy.
  • Repairing damage caused by accidents at the main agency instead of workshops.
  • Covering the full cost of the claim without calculating the consumption of the car if the insured car is new (valid only for new cars up to 6 months from the date of purchase).
  • Compensation for damages resulting from the loss of personal belongings or property inside the insured vehicle resulting from traffic accidents, fire, theft or attempted theft. This must be proven in the police report.
  • Replacement of a new vehicle: This cover provides the possibility to pay the difference between the actual value of the vehicle in the event of a traffic accident and the remaining amount of financing for the bank or finance company. This additional coverage is usually available when you purchase a comprehensive car insurance policy that includes cars that are under the age of 6 years.