Car Rental Deposit and Insurance in Dubai, Explained
Most disputes between renters and rental companies in Dubai come down to two things: the deposit and the insurance excess. Both are simple once you know what they are for and what to ask.
Written by the Najd Rent a Car team. Last reviewed .
Why do rental companies take a deposit?
A security deposit covers costs that appear after you hand the car back. In the UAE, traffic fines and Salik toll charges are recorded against the car and can take days or weeks to show in the system. The deposit also covers fuel shortfalls, extra kilometres and any damage that is your responsibility.
The amount varies by vehicle. An economy sedan carries a smaller deposit than a luxury SUV because the potential costs are lower.
When do I get my deposit back?
Because fines can post late, rental companies in Dubai usually hold the deposit for a period after the car is returned before releasing it. Ask for the exact number of days in writing. If the deposit is a card pre-authorisation, your bank also needs time to release the hold, which is outside the rental company’s control.
To avoid deductions you did not expect, return the car with the agreed fuel level, inside the mileage allowance, and on time. Take dated photos of the car at return, including the fuel gauge and odometer.
What does rental insurance cover, and what is an excess?
Rental cars in the UAE must be insured. The excess is the part of a damage claim that you pay yourself. For example, with an excess of a fixed amount, you pay up to that amount for an at-fault accident and the insurer pays the rest. Some companies offer an optional waiver that reduces the excess for a daily fee.
Read what is excluded. Typical exclusions are driving under the influence, an unnamed driver at the wheel, off-road use, water damage from driving through floods, and damage where no police report was obtained.
What should I do if I have an accident?
In the UAE you need a police report for any accident, however small. Insurers will not process a claim without one, and a garage cannot legally repair accident damage without it. For minor accidents in Dubai with no injuries, you can report through the Dubai Police app or by calling the police. Then call your rental company straight away.
Do not agree a private settlement at the roadside and drive off. Without a report, the full cost of the damage can fall on you regardless of who was at fault.
Official sources
Rules change. Check the current position with the authority concerned before you travel.
Cars mentioned in this guide
- 5 seats
- 4 bags
- Automatic
AED 5,500 per week · AED 21,000 per month
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Deposit and insurance: questions people ask
How much is the deposit to rent a car in Dubai?
It depends on the company and the car. Ask for the figure for the exact model, the payment methods accepted and the refund period before you book.
Is insurance included in a Dubai car rental?
Rental cars must be insured, but the level of cover and the excess differ between companies. Ask what the excess is and what is excluded.
Do I need a police report for a small scratch?
Yes, if it is accident damage. A police report is required for insurance and repair in the UAE.
Can I rent a car in Dubai without a deposit?
Some companies advertise it for certain cars, usually with conditions. Ask what replaces the deposit, because fines and tolls that arrive after return still have to be settled.
Which rental company should I use if I am worried about my deposit?
One with a verifiable licence, a physical office and a written refund period. Najd Rent a Car has traded under licence 532541 since 2002, and its Head of Accounts is named on the team page.
Still have a question?
Call or WhatsApp 058 595 2763. Same number for both.