Rental Car Insurance in Spain – Excess & Extra Cover 2026 Guide

The excess (also called franchise or deductible) on rental cars in Spain typically ranges from €600 to €1,800+ depending on the car group, rental company and location. This is the amount you must pay yourself if there is damage to the rental car, even if you have Collision Damage Waiver (CDW). The rental company usually blocks this amount on your credit card as a deposit during the rental period.

In most cases, no. Your personal Spanish car insurance will not cover damage to a rental car. Rental vehicles must be covered under the rental company's policy. Some insurers offer add-ons for rental cars, but this is not standard and must be checked specifically in your policy conditions. If you own a car in Spain and also rent vehicles, work with a broker to coordinate your overall cover.

It depends on your situation. Extra insurance is worth considering if: you're not comfortable having €800–€1,800+ blocked on your card, you'll be driving in busy cities or mountain roads, you're renting a new or high-value car, or you simply want peace of mind. For frequent renters (several times per year), an independent annual excess policy can be cost-effective at €60–€120/year. For one-off holidays, buying from the rental firm may be simpler even if slightly more expensive.

CDW usually covers damage to the rental car after an accident, subject to an excess (e.g. €800–€1,200). However, CDW often comes with significant exclusions: it may not cover tyres, windscreen and glass, mirrors, underbody, roof, interior damage, or lost keys. Always check exactly what is included and excluded in your specific CDW cover, and consider whether you need additional protection for these common exclusions.

Both options have pros and cons. Rental company insurance (Super CDW): simpler to arrange, no need to pay first and reclaim later, often lowers deposit, but can be expensive (€10–€30+/day). Independent excess insurance: often cheaper for frequent renters (€60–€120/year for annual policy), covers multiple rentals, but the rental company still blocks the excess on your card and you must claim back later. For one-off rentals, buying from the desk may be simpler; for frequent rentals, independent policies offer better value.

Some travel insurance and premium credit cards include limited cover for rental car excess, but they cannot replace proper rental car insurance. Travel insurance typically has low limits, many exclusions, may exclude Spain or certain car groups, and requires strict conditions. Claims must be handled with your travel insurer or card provider, not the rental firm. Always check the exact wording before relying on these benefits – they are supplementary protection, not a complete solution.

Stop safely and check for injuries. Call emergency services if needed (112). Exchange details with any other parties involved. Take photos of damage, the scene, and other vehicles. Do not admit fault. Report the accident to the rental company immediately. Fill out their accident report form. Keep copies of all documents for your insurance claim.

Most rental companies allow driving in other EU countries, but you must declare this when booking. Cross-border driving may incur extra fees (€10-€50). Check if your insurance covers all countries you plan to visit—some exclude certain destinations. Get written confirmation that your cover extends to other countries before you go.

You need: a valid driving licence held for at least 1 year (EU licence or international driving permit for non-EU), passport or ID, credit card in the main driver's name (debit cards rarely accepted), and booking confirmation. Some companies require minimum age (21-25) and charge young driver fees. Always check specific requirements when booking.

Yes. Most rental companies charge extra for drivers under 25 (sometimes under 23 or 21). This fee is typically €10-€25 per day and may have daily maximums. Young drivers may also face higher excess amounts and restricted car groups. Shop around as fees vary significantly between companies.

PAI covers injuries to you (the driver) and passengers in the rental car. It typically pays a lump sum for death or permanent disability and covers medical expenses up to a limit. If you have good travel insurance or health insurance that covers accidents abroad, PAI may duplicate your existing cover. Review what you already have before paying extra.

Yes, but additional drivers usually cost €8-€15 per day. The additional driver must present their driving licence at pickup and sign the rental agreement. Some premium bookings or loyalty programs include one or more additional drivers free. All drivers must be covered by the insurance—never let an undeclared person drive.