Wandering through Dubai’s bustling streets in a rental car is an exciting way to discover the city’s dynamic wonders. However, as you prepare for your trip, you must educate yourself about the intricate world of insurance coverage that comes with driving a car rental in Dubai. In this blog post, we will dig into the nuances of insurance coverage, arming you with sufficient information to rent a car in Dubai. So, buckle up and keep reading about the ins and outs of car rental insurance in Dubai for a seamless trip across the country.

Introduction to Car Rental Insurance in Dubai

Before we dive into the various types of insurance, let’s start with the two that are the foundation of other insurance coverages: basic insurance and comprehensive insurance. Car rental services in Dubai provide you with basic insurance coverage, whereas comprehensive insurance coverage needs to be purchased. To understand these two in-depth, keep reading!

● Basic Insurance

Basic insurance in Dubai often includes third-party liability coverage. You may ask, what does that mean? Consider this, you’re parallel parking your car and hit the rear-end of a car behind you causing damage to another person’s car. This is where third-party liability coverage comes into effect. It absolves you from the legal consequences of the damage you caused. It may also provide coverage for injuries suffered by that person. However, any damage to the rental car is not covered by basic insurance.

● Comprehensive Insurance

Basic insurance in Dubai is mandatory and automatically applicable the minute you rent a car, but it is often advised to purchase comprehensive coverage. The reason is that the driver feels more safe on the road and has peace of mind. Comprehensive coverage includes everything that basic insurance does and more! The insurance covers damages to the rental car, theft, and any personal injuries. Purchasing comprehensive coverage is better in the long run as it will protect you from breaking your wallet in the event of an accident, theft, or damage to the rental car.

Other Types of Insurance

Aside from the two insurance options listed above, you may come across a few more types of insurance when renting a car in Dubai:

● Collision Damage Waiver (CDW)

One of the most common terms when discussing car rental insurance coverage is “Collision Damage Waiver” or CDW. It is an optional supplementary insurance option that reduces your financial liability in the event of a collision. By purchasing CDW, you can lessen or even do away with your responsibility for any damage to the rental car. The CDW terms and conditions must be carefully examined as there may be certain exclusions and limitations.

● Super Collision Damage Waiver (SCDW)

In addition to CDW, some car rental services in Dubai also provide SCDW or “Super Collision Damage Waiver” which is meant to act as an extra degree of protection. In the case of an unforeseen collision, usually, you’ll have to pay a whole lot to cover the damages and/or accident. But with SCDW, you may either reduce your costs or step away from financial liability. It usually offers a higher coverage level than CDW, allowing you to relax during your rental period.  However, as with CDW, it is crucial to read the terms and conditions of SCDW to learn about any exclusions or restrictions.

● Personal Accident Insurance

When renting a car in Dubai, Personal Accident Insurance (PAI) is another crucial coverage to take into account. In the unlikely event of an accident, PAI covers medical bills for a serious injury and death as a result of the accident. This is optional coverage, so assess your individual needs and circumstances before arriving at a decision.

● Loss Damage Waiver (LDW)

Another type of coverage available to you when renting a car in Dubai is Loss Damage Waiver (LDW). This coverage includes the advantages of CDW and theft insurance, covering both vehicle damage and theft-related risks. Depending on the terms and conditions stated in the rental agreement, LDW may free you from or lower your financial liability for vehicle damage or theft.


By now, you might’ve finalized the type of insurance you want or are overwhelmed with so many choices. In either case, it is recommended that you talk to an insurance expert at the car rental service agency before making a decision. You can travel through Dubai with confidence if you are well-informed and well-insured.