Car rental insurance can be confusing, with multiple types of coverage and unfamiliar terminology. This guide breaks down everything you need to know so you can make an informed decision and drive with confidence.
CDW is the most important coverage. It limits your financial liability if the rental car is damaged in an accident. Without CDW, you could be responsible for the full repair cost — potentially thousands of euros.
Most basic rentals include CDW with an excess (deductible) of €500-€2,000. This means you pay up to that amount for any damage. Full CDW (also called Super CDW or excess reduction) lowers or eliminates this excess, typically costing €5-15/day extra.
Theft Protection covers you if the rental car is stolen. Like CDW, it usually comes with an excess. Full Theft Protection reduces or eliminates this excess. In most countries in our coverage area (Morocco, Spain, Portugal), car theft targeting tourists is rare, but this coverage provides peace of mind.
This is mandatory and always included in the rental price. It covers damage you cause to other people or their property. The minimum legal coverage varies by country but is always included.
PAI covers medical costs and provides a lump sum for serious injuries to the driver and passengers. If you have travel insurance or health insurance that covers you abroad, PAI may be unnecessary.
Some rental agreements include roadside assistance (towing, flat tire changes, lockout service). If not included, it's worth adding for trips in remote areas, especially mountain roads in Morocco or rural Spain.
The excess is the amount you must pay out of pocket before insurance kicks in. For example, with a €1,000 excess:
Reducing or eliminating the excess is the main benefit of upgrading your insurance.
Rental agency insurance is convenient but often expensive. Alternatives include:
If using alternative coverage, keep proof handy and be prepared for the agency to put a hold on your credit card for the excess amount.
| Country | Basic CDW Excess | Recommended Coverage |
|---|---|---|
| Morocco | €500-1,500 | Full CDW + TP strongly recommended |
| Spain | €800-2,000 | Full CDW recommended |
| Portugal | €800-1,500 | Full CDW recommended |
For peace of mind, we recommend full insurance coverage, especially in Morocco where road conditions can be unpredictable. The extra €10-15/day is a small price for worry-free driving. Use our comparison tool to find rentals with the best insurance options included.
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