Car Rental Insurance:
The Complete Guide
CDW, LDW, SCDW, excess, Visa Premier... Understand everything in 5 minutes to choose the best protection and save money
Why this guide is essential
Car rental insurance is often misunderstood, a source of confusion and hidden costs. Our guide helps you make the right choice.
Save €200-500
Understand what is really necessary and avoid superfluous insurance that inflates the bill.
Optimal protection
Choose the coverage suited to your situation: destination, duration, type of vehicle, budget.
No surprises
Know exactly what is covered and the exclusions to avoid nasty surprises in the event of a claim.
Table of contents
The different types of car rental insurance
1. CDW / LDW - Collision Damage Waiver
The mandatory basic insurance that covers damage to the rental vehicle in the event of an accident, collision or theft.
- Often included in the base price
- Excess (deductible) between €500 and €2000
- Covers: collision, rollover, theft (with police report)
- Does NOT cover: undercarriage, tyres, rims, windows (sometimes)
2. SCDW / Super CDW - Excess waiver
The supplementary insurance that reduces or cancels the excess of the CDW/LDW.
- Excess reduced to €0 or a minimal amount (€50-200)
- Total peace of mind
- Recommended for: risky destinations, long rentals, cautious drivers
- Additional cost: €10-30/day depending on destination
3. PAI - Personal Accident Insurance
Personal insurance that covers bodily injury to the driver and passengers.
- Compensation in the event of injury, disability or death
- Medical expenses reimbursed
- Often covered by your travel insurance or bank card
- Cost: €5-10/day
4. TP - Theft Protection
Protection against theft of the vehicle or its equipment.
- Covers total theft of the vehicle
- Theft of equipment (GPS, baby seats)
- Requirement: police report within 24h
- Not covered if: keys left in the vehicle, negligence
CDW and LDW: the basic insurance decoded
What is CDW / LDW?
CDW (Collision Damage Waiver) or LDW (Loss Damage Waiver) is the minimum mandatory insurance in most countries. It limits your financial liability in the event of damage to the rental vehicle.
What CDW/LDW covers
- ✓ Damage following a collision with another vehicle
- ✓ Damage following an accident (running off the road, rollover)
- ✓ Theft of the vehicle (with police report within 24h)
- ✓ Acts of vandalism
- ✓ Natural disasters (storm, hail, flood)
What CDW/LDW does NOT cover
- ✗ Undercarriage (sump guard, tank)
- ✗ Tyres, rims and hubcaps
- ✗ Windows, headlights and mirrors (depending on the company)
- ✗ Interior damage (seats, dashboard)
- ✗ Loss or theft of the keys
- ✗ Damage caused while driving under the influence of alcohol/drugs
- ✗ Off-road or unauthorised use
- ✗ Driving by a person not declared on the contract
Important: the excess (deductible)
Even with CDW/LDW, you remain liable for part of the damage called the excess or deductible.
- • Amount: Between €500 and €2000 depending on the country and the type of vehicle
- • Example: €1500 of damage with a €800 excess → You pay €800, the insurance pays €700
- • Solution: Take out an SCDW (Super CDW) to reduce or cancel this excess
SCDW: excess waiver - should you take it?
Advantages of the excess waiver
- ✓ Total peace of mind: Excess reduced to €0 or a minimal amount
- ✓ Simplified handling: No advance of costs in the event of a claim
- ✓ Extended protection: Often covers tyres, windows, undercarriage
- ✓ Time saved: Immediate settlement with the rental company
- ✓ Ideal for: Cautious drivers, long rentals, risky destinations
Disadvantages of the excess waiver
- ✗ High cost: €10-30/day, i.e. €300-900 for a month
- ✗ Often unnecessary: If you already have a premium bank card
- ✗ Not always fully covered: Read the exclusions in the terms
- ✗ Low return: If no claim, money lost
- ✗ To avoid if: Short rental (<5 days) with a premium bank card
💡 Elynor Tours Expert Tip
Take the excess waiver (SCDW) if:
- • Rental of more than 15 days (total cost €150-450 for total peace of mind)
- • Risky destination: difficult driving, winding roads (Morocco, Israel, Italy)
- • High-end vehicle or SUV (excess often >€1500)
- • You do not have a premium bank card (Visa Premier, Mastercard Gold)
- • You prefer peace of mind over savings
Refuse the excess waiver if:
- • Short rental (1-7 days) with a premium bank card
- • Safe destination with excellent road infrastructure (France, Germany, Switzerland)
- • Standard economy vehicle
- • Tight budget and you are an experienced driver
Understanding the excess (deductible)
What is the excess?
The excess (or deductible) is the amount that remains your responsibility in the event of damage to the vehicle, even if you have CDW/LDW insurance.
Concrete example
You rent a car with a €1000 excess.
Scenario 1: Accident causing €3000 of damage
- → You pay: €1000 (the excess)
- → The insurance pays: €2000
Scenario 2: €600 of damage
- → You pay: €600 (everything, as it is below the excess)
- → The insurance pays: €0
Scenario 3: No damage
- → You pay: €0
- → The insurance pays: €0
Excess amount by country
Europe (economy car):
- • France, Germany: €500-800
- • Spain, Italy: €700-1000
- • Portugal, Greece: €800-1200
International:
- • Israel: €1000-1500
- • Morocco: €800-1200
- • Dubai: €1200-2000
- • USA: $1000-2500 (€900-2300)
⚠️ High-end vehicles and SUVs: excess often doubled (up to €3000)
3 ways to reduce or cancel the excess
Rental company SCDW
Excess waiver directly with the rental company (€10-30/day). Immediate handling in the event of a claim.
Premium bank card
Visa Premier, Mastercard Gold: excess often covered (check conditions). Free but deferred reimbursement.
Third-party insurance
Annual insurance (€100-150/year) covering all your rentals. Economical if you rent often.
Bank card insurance (Visa Premier, Mastercard Gold)
Does your bank card cover car rental?
Yes, partially! Most premium bank cards (Visa Premier, Mastercard Gold, American Express...) include car rental insurance. But beware of the conditions and exclusions.
What your bank card covers
- ✓ CDW/LDW excess: Reimbursement up to €5000-15000
- ✓ Material damage: Collision, theft, fire
- ✓ Territories: Europe, USA, Canada, often worldwide
- ✓ Duration: 31 to 90 days depending on the card
- ✓ Driver and spouse: Often both covered
Common exclusions
- ✗ Excluded vehicles: 4x4s, campervans, vehicles with >9 seats, luxury (>€50-70k)
- ✗ Excluded countries: Israel (sometimes), countries at war, certain African countries
- ✗ Duration: Beyond 31-90 days
- ✗ Professional use: Rental for work not covered
- ✗ PAI insurance: Bodily injury not covered
Conditions to respect ABSOLUTELY
- ⚠️ Pay for the rental with the card: Required to activate the insurance
- ⚠️ Refuse the rental company's SCDW: Or the card insurance does not work (depending on conditions)
- ⚠️ Keep all documents: Contract, invoices, accident report, photos
- ⚠️ Report the claim quickly: Within 20 days (Visa) or 5 days (Amex)
- ⚠️ Advance the costs: You pay, then request reimbursement (2-3 month delay)
Bank card comparison
| Card | Ceiling | Max duration | Territories |
|---|---|---|---|
| Visa Premier | €15,000 | 90 days | Worldwide |
| Mastercard Gold | €12,000 | 60 days | Worldwide |
| Visa Infinite | €50,000 | 90 days | Worldwide |
| Amex Gold/Platinum | €75,000 | 90 days | Worldwide |
ℹ️ Always check the exact conditions with your bank, as they may vary.
💳 Our recommendation: when to use bank card insurance?
✅ YES, use your card if:
- • Short rental (1-14 days)
- • Covered destination (check!)
- • Standard vehicle (not 4x4, not luxury)
- • You want to save €15-30/day
- • You are ready to advance the costs in the event of a claim
❌ NO, take the rental company's insurance if:
- • Long rental (>60-90 days)
- • Excluded destination (e.g. Israel sometimes)
- • 4x4, campervan, luxury vehicle
- • You want immediate peace of mind
- • You do not want to advance costs
What is NEVER covered (or almost)
⛔ Universal exclusions - All insurance
Mechanical damage & parts
- • Undercarriage (sump guard, tank, exhaust)
- • Punctured tyres, damaged rims, hubcaps
- • Windows, windscreen (sometimes covered with a specific option)
- • Broken headlights, lights, mirrors
- • Antenna, wipers
- • Interior damage (seats, dashboard, carpet)
Behaviour & use
- • Driving under the influence of alcohol, drugs or medication
- • Driving by an unauthorised person (not on the contract)
- • Invalid, suspended or expired licence
- • Off-road use (except authorised 4x4 vehicle)
- • Extreme speeding, illegal racing
- • Unauthorised commercial use (taxi, delivery)
Theft & negligence
- • Theft without a police report within 24h
- • Keys left in the vehicle
- • Loss or theft of the keys (cost €200-500)
- • Vehicle left unlocked
- • Parking in a forbidden/dangerous area
- • Obvious negligence (doors open, windows down)
Special situations
- • Intentionally caused damage
- • Unauthorised border crossing
- • War, riots, terrorist acts (depending on the country)
- • Nuclear disaster
- • Towing another car
- • Transport of hazardous materials
🚨 Common traps to absolutely avoid
Wrong fuel
Putting diesel in a petrol car (or vice versa) = engine damage NOT COVERED. Cost: €2000-5000.
Forbidden zones
ZTL in Italy, toll zones without an electronic tag = fines + traffic damage NOT REIMBURSED.
Late return
Returning the car late without notice = penalties (€50-200/day) + insurance invalid if accident.
Car rental insurance comparison
| Type of insurance | What is covered | Excess | Cost/day | Recommended for |
|---|---|---|---|---|
| CDW / LDW (Mandatory base) | Collision, theft, fire, vandalism | €500-2000 | Included or €10-15 | Everyone (legal minimum) |
| SCDW / Super CDW (Excess waiver) | Same as CDW + reduction/cancellation of excess | €0-200 | €10-30 | Long rentals, risky destinations |
| PAI (Personal Accident) | Bodily injury driver + passengers | Variable | €5-10 | If no travel/health insurance |
| TP (Theft Protection) | Vehicle + equipment theft | €300-1000 | €5-15 | Theft-risk destinations (Italy, Spain) |
| Bank card (Visa Premier, etc.) | CDW supplement, excess reimbursement | €0 (after reimbursement) | Free | Standard short rentals |
| Third-party insurance (Annual) | All rentals during the year | €0-100 | €100-150/year | Frequent rentals (>20 days/year) |
Which insurance to choose for your profile?
Occasional holidaymaker
1-2 rentals per year, 1 week, Europe/USA destination
Recommendation:
- ✓ Premium bank card
- ✓ Basic CDW/LDW (included)
- ✗ Refuse rental company SCDW
💰 Saving: €150-250/rental
Mobile professional
Frequent rentals (>20 days/year), business travel
Recommendation:
- ✓ Annual third-party insurance
- ✓ Basic CDW/LDW
- ✗ Refuse all rental company options
💰 Saving: €500-1000/year
Peace-of-mind seeker
Prefers serenity to savings, zero stress
Recommendation:
- ✓ Rental company SCDW
- ✓ Basic CDW/LDW
- ✓ Consider PAI if long trip
💳 Cost: +€15-30/day (peace of mind guaranteed)
Off-road adventurer
4x4, difficult roads, Morocco/Iceland/Africa
Recommendation:
- ✓ SCDW + off-road options
- ✓ Undercarriage protection
- ✓ Tyre/rim insurance
⚠️ Essential: bank cards often exclude 4x4
Luxury enthusiast
Ferrari, Porsche, Mercedes S-Class, Dubai/Monaco
Recommendation:
- ✓ Premium SCDW MANDATORY
- ✓ €0 excess (can be €5000+)
- ✓ Enhanced theft insurance
💰 Cost: €50-150/day (non-negotiable)
Tight budget
Student/young, 1st rental, small budget
Recommendation:
- ✓ Parents' bank card
- ✓ Basic CDW/LDW only
- ✓ Drive VERY carefully
💡 Tip: borrow a parent's Visa Premier card
Car rental insurance rates
2025 rate grid
| Insurance | Price/day | Price/week | Price/month |
|---|---|---|---|
| CDW/LDW (base) | Included or €10-15 | €70-105 | €300-450 |
| SCDW (excess waiver) | €10-30 | €70-210 | €300-900 |
| PAI (bodily injury) | €5-10 | €35-70 | €150-300 |
| TP (theft protection) | €5-15 | €35-105 | €150-450 |
| Full pack (SCDW+PAI+TP) | €25-40 | €175-280 | €750-1200 |
| Annual third-party insurance | - | - | €100-150/year |
💡 Example: 1-week rental in Europe
- Car: €250
- Basic CDW: Included
- With bank card: €250 total
- With rental company SCDW: €250 + €140 = €390
- → Bank card saving: €140
💡 Example: 1-month rental in Dubai
- Car: €900
- Basic CDW: Included
- Bank card: Limited to 60-90 days OK
- SCDW advised: +€600
- → Total: €1500 (total peace of mind)
💡 Professional: 30 days/year
- Rental company SCDW: 30d × €20 = €600/year
- Annual third-party insurance: €120/year
- → Saving: €480/year
- Third-party insurance pays off from 7 days/year
10 Expert Tips from Elynor Tours
Photograph EVERYTHING before leaving
Full photos/video of the vehicle (bodywork, interior, dashboard, fuel level, mileage) with a timestamp. Crucial in the event of a dispute.
Read the contract BEFORE signing
Check: excess amount, exclusions, mileage, fuel, authorised drivers, authorised territories. Never sign under pressure.
Check your bank card BEFORE
Call your bank to confirm: active coverage, covered territories, max duration, excluded vehicle types, ceiling amount. Do not discover this after a claim.
Refuse insurance at the counter
Rental companies aggressively push insurance (high commission). If you have a premium card or third-party insurance, refuse politely but firmly.
Report ANY claim IMMEDIATELY
Accident, theft, damage: notify the rental company + insurer + police within 24h. Late declaration = reimbursement refused. Take photos, accident report, witnesses.
Keep ALL documents
Contract, receipts, photos, accident report, repair invoices, email exchanges. Keep for at least 1 year (reimbursement deadlines). Scan everything to the cloud.
Beware of traps on return
Some rental companies "discover" damage on return. Demand a joint inspection, refuse to pay on the spot without proof, take photos on return.
Annual insurance if >7 days/year
Third-party insurance (Allianz, AXA, etc.) = €100-150/year for unlimited coverage. Pays off from 7 rental days/year vs €20/day rental company SCDW.
Risky destinations = SCDW mandatory
Italy (ZTL), Morocco (difficult roads), Israel (sporty driving), USA (different system): take the excess waiver. Too many risks otherwise.
Trust Elynor Tours
We negotiate the best insurance with our partners. Total transparency, no hidden fees, personalised advice. Call us before booking elsewhere.
Frequently Asked Questions (FAQ)
What is CDW insurance in car rental?▼
CDW (Collision Damage Waiver) is the basic insurance that covers damage to the rental vehicle in the event of an accident or collision. It reduces your financial liability but often leaves an excess (the amount remaining your responsibility) between €500 and €2000 depending on the country and the type of vehicle.
Do I need additional insurance if I have a Visa Premier?▼
Visa Premier, Mastercard Gold and high-end cards often include car rental insurance with a reduced excess. However, check the conditions: limited rental duration (often 60-90 days), covered territories, and exclusions (4x4, luxury vehicles). The card insurance works as a supplement to the basic CDW.
What is the difference between CDW and SCDW?▼
CDW (Collision Damage Waiver) is the basic insurance with an excess (€500-2000). SCDW (Super CDW) or excess waiver reduces this excess to €0 or a minimal amount (€50-200). This offers total peace of mind for a supplement of €10-30/day.
What does car rental insurance never cover?▼
Common exclusions include:
• Undercarriage damage (sump guard, tank)
• Tyres, rims and windows (sometimes)
• Driving while intoxicated or without a valid licence
• Off-road or unauthorised use
• Theft without a police report within 24h
• Negligence (keys left in the car)
How much does full car rental insurance cost?▼
2025 rates vary by type of insurance:
• Basic CDW: Included or €10-15/day
• SCDW (excess waiver): €10-30/day
• PAI (personal insurance): €5-10/day
• Full pack (SCDW + PAI + theft protection): €25-40/day
Full coverage costs about €175-280/week or €750-1200/month depending on the destination.
Is it better to take the rental company's insurance or use your bank card?▼
It depends on your profile:
Use your bank card (Visa Premier/Gold) for:
• Standard short rentals (1-14 days)
• Covered destinations
• Standard vehicles
• Saving: €15-30/day
Take the rental company's insurance for:
• Long-term rentals (>60 days)
• Risky destinations
• High-end or 4x4 vehicles
• If you do not have a premium card
• Advantage: instant handling in the event of a claim
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