Insurance, Deposit, Fees, and Fines for Rental Cars in the UAE

Renting a car in the UAE comes with certain financial responsibilities, including insurance coverage, security deposits, rental fees, and potential fines. Understanding these costs in advance will help you avoid surprises during and after your rental period.

1. Car Rental Insurance in the UAE

All rental cars in the UAE come with basic insurance coverage, as required by law. However, there are different types of insurance options available, and it is important to understand what they cover.

Types of Rental Car Insurance:

✔️ Basic Insurance (Third-Party Liability) – This is mandatory and included in the rental price. It covers damage to third-party property or injuries to others but does not cover damage to the rental vehicle itself.

✔️ Collision Damage Waiver (CDW) – An optional upgrade that reduces your liability for any damage to the rental car. If you decline CDW, you may be responsible for paying the full repair costs in case of an accident.

✔️ Full Insurance / Comprehensive Coverage – This covers both third-party damages and rental car damages, including accidents, theft, and fire. It is recommended for extra protection, but comes at an additional daily fee.

✔️ Personal Accident Insurance (PAI) – Covers medical expenses for the driver and passengers in case of an accident.

✔️ Off-Road Insurance – If you plan to drive in the desert or rough terrains, you will need special off-road insurance, as regular rental insurance does not cover off-road driving.

💡 Important Note:

• If you cause an accident without a valid police report, you will be responsible for all damages, even if you have insurance.
• Insurance does not cover damages caused by reckless driving, drunk driving, or violation of UAE traffic laws.

2. Security Deposit for Rental Cars

Most car rental companies in the UAE require a refundable security deposit before handing over the vehicle. This amount is blocked on your credit card and released after the rental period, provided there are no:

• Traffic fines
• Salik (toll) charges
• Vehicle damages

Average Security Deposit Amounts:

🚗 Economy & Standard Cars: AED 1,000 – AED 3,000
🚙 SUVs & Luxury Cars: AED 5,000 – AED 10,000

💡 Refund Policy:

• The deposit is usually released within 14 to 30 days after returning the car.
• Refunds may take longer if traffic fines are recorded on the vehicle during the rental period.

3. Rental Fees & Additional Charges

When renting a car, you will be charged a daily, weekly, or monthly fee, depending on the contract. However, additional charges may apply, such as:

✔️ Salik Toll Charges – AED 4 per crossing, deducted from the security deposit.
✔️ Additional Driver Fee – Adding another driver costs AED 50 – AED 100, depending on the rental provider.
✔️ Late Return Fees – Most companies allow a grace period of 30-60 minutes but charge an extra full-day rental if the car is returned late.
✔️ Fuel Policy – Cars are usually provided with a full tank, and you must return the car with the same fuel level or pay refueling charges.
✔️ Child Seat Rental – AED 30 – AED 50 per day for a baby or booster seat.
✔️ GPS Navigation Rental – AED 25 – AED 50 per day for a GPS device.
✔️ Cross-Border Fees – Some rental companies charge an extra fee for traveling between Emirates, and driving outside the UAE is strictly prohibited.

4. Traffic Fines for Rental Cars in the UAE

If you receive any traffic fines while driving a rental car, the charges will be deducted from your deposit or billed separately. The rental company will notify you of any violations.

Common Traffic Fines in the UAE:

🚦 Speeding Violation – AED 300 – AED 3,000 (depending on excess speed)
🚦 Running a Red Light – AED 1,000 – AED 3,000 + 12 black points
🚦 Using a Mobile Phone While Driving – AED 800 + 4 black points
🚦 Not Wearing a Seatbelt – AED 400 + 4 black points
🚦 Illegal Parking – AED 200 – AED 1,000
🚦 Drunk Driving – Court-decided fine + Vehicle Confiscation
🚦 Reckless Driving – AED 2,000 + 23 black points

💡 Important Notes:

• Rental companies charge an additional processing fee of AED 50 – AED 100 per fine.
• Salik toll charges and fines will be deducted from your security deposit.

Final Thoughts

Understanding the insurance, deposit policies, rental fees, and fines before renting a car in the UAE is essential to avoid unexpected costs. Whether you are a tourist or resident, ensure that you:

✔️ Choose a rental package that includes proper insurance for peace of mind.
✔️ Keep track of Salik toll charges and potential fines during your rental period.
✔️ Return the car on time, undamaged, and with the correct fuel level to avoid extra fees.

🚗 Planning to rent a car in the UAE? Stay informed, drive safely, and enjoy a hassle-free experience! 🚗