Car insurance for rentals is essential for peace of mind during your travels. Let me start by saying this falls a bit outside my area of expertise, but I found a great article I used as a basis for what I’m explaining below.
You can read the full article here.
Car insurance for rentals, in a nutshell:
In Portugal, it’s a legal must to have unlimited third-party liability insurance for drivers. The good news is that it’s automatically factored into the total cost of all car rentals. This insurance serves as your protection against any liability stemming from property damage, injury, or unfortunate incidents while operating your rental vehicle in Portugal.
Now, onto the Collision Damage Waiver (CDW) and Excess Waiver (EW) business. What’s the deal, you ask? Every rental company provides the basic insurance needed for driving. However, many also bundle in CDW insurance with an excess (deductible) that isn’t covered by the basic insurance. This deductible usually hovers between 2,000 to 3,000 Euros.
The question is: how do you safeguard yourself? Here are your options:
- Skip the Excess Waiver: If your credit card already covers you (ensure you pay with that card), you can opt out of this additional insurance. If your rental sustains damage, the rental company will charge your credit card the deductible upfront. It then becomes your responsibility to seek reimbursement from your credit card company. Personally, I would follow this route if you have coverage through your credit card. Payment of the rental must be with the same credit card, or you won’t be covered.
- Stick with the Quoted Price: Accept the quoted price inclusive of the standard CDW, which leaves you with a deductible ranging from 2,000 to 3,000 Euros. It can be a bit of a gamble.
- Choose the “Reduced Excess” Option: Opt for the mid-level insurance provided by the rental car company. This typically reduces your deductible from 3,000 Euros to around 1,000 Euros. It’s a balanced approach to mitigating risk.
- Go for the “Minimum Excess” or Super CDW: Select this option for comprehensive coverage against all damages to the car. It eliminates worries but comes at an additional cost.
When deciding on these insurance options, it’s advisable to make your choice during the booking process, as these options tend to be pricier at the counter.
Please note: The basic CDW included in your booking doesn’t cover everything. Some types of damage, such as windscreens, cracks, tire issues, damage to headlights, and underbody damage, are not covered by CDW. Additionally, CDW does not cover expensive accident-related fees like administration, towing, and loss of use fees. Keep this in mind before declining excess insurance, especially if your credit card doesn’t provide coverage.
Worried about driving in Portugal? We’ve got you covered on all things to know before you drive!
Safe travels! 🚗✈️
Sérgio Costa
Link to Original Post.
