If you’re planning to rent a car in Dubai, you’ve probably wondered about insurance. Do you really need it? What’s included in the price? And what happens if something goes wrong?

The good news is, Dubai makes things straightforward — but many visitors still find the details confusing. That’s why we’ve created this easy guide to car rental insurance in Dubai, so you’ll know exactly what’s covered, what’s optional, and how to avoid unexpected costs.

Is Car Rental Insurance Mandatory in Dubai?

Yes. By law, every rental car in Dubai must come with basic insurance coverage. This ensures that drivers and passengers are protected in case of an accident.

• Included automatically in every car rental.
• Covers third-party liability — meaning if you damage someone else’s car or property, you’re insured.
• Does not cover damage to your own rental car (that’s where optional coverage comes in).

So, when you rent a car, rest assured that you’ll always have a minimum level of protection.

Types of Car Rental Insurance in Dubai

Here are the most common types of rental insurance options you’ll see:

1. Basic / Third-Party Liability Insurance

• Always included.
• Covers damage to other people’s cars or property.
• Does not cover the rental car itself.

2. Collision Damage Waiver (CDW)

• Optional upgrade.
• Covers damage to your rental car in case of an accident.
• Usually requires a small daily fee.

3. Comprehensive Insurance

• Full coverage option.
• Protects your car, third parties, and incidents like theft or fire.
• Best for peace of mind on long trips.

4. Personal Accident Insurance (PAI)

• Covers medical costs for the driver and passengers.
• Optional, but worth considering if you’re traveling with family.

How Much Does Car Rental Insurance Cost in Dubai?

The price of insurance depends on the type of coverage and the car you rent:

• Basic insurance: Free (included in all rentals).
• CDW (Collision Damage Waiver): AED 20–50 per day.
• Comprehensive coverage: AED 50–100 per day.
• Monthly insurance packages: Available for long-term rentals.

Tip: Insurance costs are higher for luxury cars than economy models.

Common Questions Tourists Have About Car Rental Insurance

Do I need CDW if I’m only driving in the city?

It’s not mandatory, but highly recommended. Even small scratches or dents can be costly without CDW.

Is insurance included in no deposit rentals?

Yes. At Kingdom Rent a Car, every rental — even deposit-free rentals — includes basic insurance.

Does insurance cover Salik tolls or fines?

No. Tolls and traffic fines are charged separately.

What happens if another driver hits me?

As long as you file a police report, your insurance will cover the incident.

Why Choose Kingdom Rent a Car for Insurance?

At Kingdom Rent a Car, we believe car rental should be simple and transparent. That’s why we offer:

• Basic insurance included in every rental.
• Deposit-free rentals — unlike most companies.
• Options to add CDW or comprehensive coverage.
• Clear agreements — no confusing fine print.
• 24/7 support if you ever need help.

Whether you rent an economy car, SUV, or luxury vehicle, we make sure you’re covered and confident on the road.

Final Thoughts

Understanding car rental insurance in Dubai doesn’t have to be complicated. Every car comes with basic insurance, and you can add extra coverage for more protection if needed. The key is to know your options before booking, so there are no surprises.

At Kingdom Rent a Car, we keep things simple: all our cars come insured, with deposit-free rentals and clear pricing.

👉 Ready to rent a car in Dubai with confidence? Browse our Car Listings or Contact Us
via WhatsApp today.