The Rise of “Ghost Rentals”: When you Rent a Car but Never Get Behind the Wheel

The Rise of “Ghost Rentals”: When you Rent a Car but Never Get Behind the Wheel

The burgeoning market for premium vehicles has led to a significant rise in demand for car hire UAE services across the region. Alongside this growth, a peculiar and concerning trend has surfaced within Dubai’s rental scene. This practice, known as “ghost rentals,” occurs when the individual who car hire UAE signs the official contract is not the one who ultimately gets behind the wheel. This scheme is frequently used to circumvent critical safety and legal protocols, such as age requirements, specific licensing provisions, or simply to maintain the anonymity of the actual driver, creating substantial risk for rental companies and other road users.

What Is a “Ghost Rental”?

Image

A ghost rental refers to a situation where the rental contract is officially signed by a person with a valid driving license and required experience, but that person never actually drives the car. Instead, a third party — sometimes even someone without a license — is behind the wheel. While it may seem harmless, this goes against rental and insurance terms.

Why Does It Happen?

Image

The UAE has strict regulations for renting luxury or high-performance vehicles:

  • Minimum rental age is 21, and often 25 for exotic cars.
  • Drivers need either a UAE license or a valid international driver’s permit.
  • Most companies require at least 2 years of driving experience.

When someone doesn’t meet these rules, they may ask a friend or relative to rent the vehicle for them. In the end, someone not listed on the rental agreement is driving the car — a clear violation.

How Common Is It?

Image

There’s no official data on ghost rentals, but insurance professionals estimate that up to 10–15% of rented luxury cars in the UAE may be driven by unauthorized individuals. This is especially common with sports cars and SUVs in the luxury market.

What Are the Risks?

Image

For rental companies, ghost rentals are a serious liability. If an accident occurs and the person driving isn’t listed in the contract, the insurance is void. The renter may have to pay out-of-pocket for all damages — sometimes up to hundreds of thousands of dirhams.

Companies may also blacklist those who break the rules, meaning they’ll no longer be able to use car hire UAE services in the future. In 2024, many companies added extra safety measures:

  • Biometric ID verification at pick-up.
  • License validation directly through the RTA (Roads & Transport Authority).
  • Video recordings of vehicle handovers to confirm who is actually receiving the car.

Legal and Social Implications

Image

Ghost rentals can lead to legal consequences. In some cases, they’re classified as fraud or misrepresentation. If minors or unlicensed individuals are involved, there can be criminal charges against the person who rented the car.

How to Stay Safe

If you’re planning to rent a vehicle in the UAE, follow these rules:

  • Only approved drivers should be listed on the contract.
  • Make sure everyone has a valid license and meets the age requirement.
  • Never hand the car over to someone not named in the agreement.

Abiding by these rules is not just about legality — it’s about responsibility and safety for everyone on the road.

Conclusion

The rise of ghost rentals is a risky side effect of the booming car hire UAE market. While it might seem like a shortcut, it exposes drivers and renters to serious financial and legal consequences. If you rent a car — drive it yourself, or properly list who will. The laws are clear, and the penalties are real.

Previous post Holding Companies in the UAE: A Smart Way to Manage Assets and Protect Capital

About Author

Share via
Copy link
Powered by Social Snap