Driving in Dubai

Car Rental Insurance in Dubai Explained: CDW, Excess & What’s Covered

July 12, 2026 · By Al Rafaheia

Rental car insurance in Dubai sounds complicated, but it comes down to a few terms. Here is what is actually covered, what is not, and what to check before you drive away.

What insurance comes with a rental car in Dubai

Third-party liability insurance is mandatory by UAE law and is always included — it covers injury or damage you cause to others. On top of that, most reputable rentals include comprehensive cover (also called CDW) for the rental car itself. Every Al Rafaheia car comes with comprehensive insurance as standard.

CDW and “excess” explained

Collision Damage Waiver (CDW) caps what you owe if the car is damaged. The excess (or deductible) is the amount you are still responsible for before the waiver kicks in. A lower excess means less risk to you; ask us what the excess is on your car and whether it can be reduced.

What insurance usually does NOT cover

Insurance is not the same as a deposit

A deposit is a temporary hold on your card against damage or fines; insurance is the cover itself. The two are separate — and with us there is no deposit on the vast majority of cars.

Before you drive

Check the excess, make sure every driver is listed, photograph any existing marks, and in an accident always get a police report — you need it to claim. See our full rental requirements guide, or just ask us on WhatsApp and we will explain your car’s cover in plain terms.

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