Are Rental Cars Insured in Dubai? Complete Guide for 2025

When asking are rental cars insured, many visitors and residents in Dubai want clarity on what’s included, what’s optional, and how to stay protected on the road. At Dirham Cars, we believe in full transparency about rental insurance so you can drive with confidence.

This article explains what’s covered in standard rentals, optional add-ons, and tips to make sure you’re fully protected.

Are Rental Cars Insured by Default?

Yes, all rental cars in Dubai come with Third‑Party Liability (TPL) insurance by law. This mandatory coverage protects against damage or injury you cause to others. According to RTA safety and insurance regulations, rental contracts must comply with these minimum standards.

• But if you’re asking are rental cars insured for damage to the rental itself, theft, or injury to you—those are optional coverages you need to request.

Optional Insurance Packages Explained

When exploring are rental cars insured in Dubai, you’ll see many options beyond TPL:

• Collision Damage Waiver (CDW): Covers damage to the rental vehicle (with a deductible).
• Loss Damage Waiver (LDW): Includes CDW + theft protection.
• Super CDW / Zero Excess: Removes or lowers deductible to zero.
• Personal Accident Insurance (PAI): Covers medical expenses for driver/passengers.
• Supplemental liability insurance / add-ons: e.g., windscreen, tire coverage.

These optional covers are common in both short-term and 1 Month Car Rental Deals.

Typical Deductibles and Exclusions

Even with CDW or LDW:

• You’re liable for a deductible (AED 1,500–5,000) unless you buy Super CDW.
• Exclusions include tires, windscreen, underbody, and misuse (e.g., off-roading or DUI).

Always clarify before booking—whether it’s long-term hire or monthly rental.

Credit Card Coverage – Does It Replace Rental Insurance?

Some travelers ask are rental cars insured by my credit card? Many premium credit cards offer rental car coverage—but usually:

• They cover collision (not liability)
• They exclude luxury or exotic vehicles
• They don’t cover third-party injury or property damage
• You’re still responsible for following local laws and conditions
  
  

So, don’t decline CDW/LDW without checking your card’s fine print.

Deposit Return and Your Rights

By law, security deposits must be refunded within 30 days of returning the vehicle (UAE Consumer Protection law). Make sure to get confirmation of no fines or damages at return.

This protects you whether renting daily or using our flexible car fleet.

Why Choose Dirham Cars for Insured Rentals

At Dirham Cars, we make insurance simple:

• All cars include mandatory TPL
• CDW / LDW / Super CDW available at fair rates
• Clear deductible terms—no hidden surprises
• Roadside assistance included in premium packages
• Full transparency whether you rent for a day or with our monthly deals

Frequently Asked Questions (FAQs)

Are rental cars insured by default in Dubai?
Yes, all rentals come with TPL, but damage to the rental car needs CDW or LDW.

Are rental cars insured for theft?
Only if you choose LDW or specific theft protection.

Can I rely on my credit card insurance?
Sometimes, but always confirm details—many cards don’t cover liability or deductibles.

When will I get my deposit back?
Within 30 days, per UAE Consumer Protection law.

Final Takeaway

So, are rental cars insured? The short answer: Yes, for third-party liability. But for full protection—including damage, theft, and personal accident—you’ll want to add CDW, LDW, or Super CDW.

At Dirham Cars, we ensure your rental comes with the right coverage, no hidden fees, and clear terms. Contact us today to learn more or explore our fleet and deals.