Rental Car Insurance in Spain – Excess & Extra Cover 2026 Guide
Quick Summary
When you rent a car in Spain in 2026, your basic rental price usually includes mandatory third-party liability and some form of collision damage waiver (CDW). However, excess (franchise) is often €600–€1,800+, standard cover does not always include tyres, glass, underbody, roof or lost keys, and rental companies offer extra insurance to reduce or remove the excess.
- Excess typically €600–€1,800+ depending on car group and company
- Standard cover often excludes tyres, glass, underbody, roof or lost keys
- Rental companies offer Super CDW/full protection to reduce excess
- Independent excess insurance can be cheaper but claims handled differently
- Your own Spanish car insurance usually does not cover rentals
- Travel insurance may include some benefits but not a full replacement
Why Rental Car Insurance Matters in Spain
Spain is one of the most popular destinations for car hire:
Popular Destination
Costa del Sol, Alicante, Valencia for beach trips; Barcelona and Madrid for city breaks
Driving Challenges
Narrow streets, underground garages, tight parking and unfamiliar rules
Strict Checks
Minor scrapes are common; rental companies strictly check cars and charge directly from your deposit
Understanding your rental car insurance before you drive off can protect your holiday budget, avoid disputes at the counter, and give peace of mind if something goes wrong.
What's Usually Included in a Standard Rental in Spain?
Although details vary by company, local and international rental firms in Spain typically include:
1. Third-Party Liability
- Covers damage or injury to others if you cause an accident
- Does not cover damage to your rental car
- Limits and conditions differ by insurer and rental company
2. Collision Damage Waiver (CDW)
- Covers damage to rental car after an accident
- Comes with excess (€800, €1,200 or more)
- Often excludes tyres, glass, underbody, roof
3. Theft Protection (TP)
- Covers the car if it is stolen
- Subject to excess and conditions
- Requires you to return keys and report theft properly
What Is the Excess (Franchise) and How Does It Work?
The excess (also called franchise or deductible) is:
The amount you must pay yourself if there is damage to the rental car, even if you had CDW.
Example Scenarios:
Excess on contract: €900
Scenario 1:
Damage repair cost: €500
→ You pay €500
Scenario 2:
Damage repair cost: €2,000
→ You pay €900, insurer pays the rest
At Collection
The rental firm usually blocks the excess amount on your credit card as a deposit. This block is released if you return the car undamaged.
If you don't have enough credit limit for the deposit, you may either not be able to rent the car, or be strongly pushed to buy extra insurance that reduces the deposit.
What Is "Extra Insurance for Rental Car" in Spain?
When you see offers like "extra insurance for rental car", "full protection" or "Super CDW", they usually mean additional cover that:
Rental Company Insurance
Super CDW / Full Protection purchased at the desk or online
✓ Pros:
- • Very simple – added directly at the counter
- • No need to pay damage first and reclaim later
- • Often lowers the deposit taken on your card
✗ Cons:
- • Can be expensive (€10–€30+ per day)
- • Coverage and limits vary – read terms carefully
Independent Excess Insurance
Separate policy that reimburses you for damage charges
✓ Pros:
- • Often cheaper for frequent renters
- • Policies can cover multiple rentals and countries
✗ Cons:
- • Rental company still blocks excess on your card
- • If there's damage, they charge you first
- • You must claim back from independent insurer
- • Rental staff may still try to sell their own cover
This extra cover can be:
- Reduces your excess (for example from €900 to €0–€200)
- Expands coverage to include tyres, windscreen, mirrors, underbody, roof, lost keys, towing and admin fees
Travel Insurance and Credit Card Benefits
Some travel insurance and premium credit cards include limited cover for rental car excess or personal accident. However:
- May exclude Spain or certain car groups
- Usually require strict conditions (paying with the card, naming the driver)
- Not a replacement for mandatory car insurance in Spain
- Often have low limits or many exclusions
- Claims must be handled with your insurer/card provider, not rental firm
Always check the exact wording before relying on these benefits.
When Does Extra Rental Car Insurance Make Sense?
Extra insurance for rental car in Spain is often worth considering if:
- • You're not comfortable having €800–€1,800+ blocked on your card
- • You'll be driving in mountain roads or rural areas
- • You'll be driving in busy city centres with tight parking
- • You're driving in unfamiliar multi-storey car parks
- • You're renting a new or high-value car
- • You simply want peace of mind and don't want to worry about small scratches
For Frequent Renters:
If you rent frequently (several times per year), an independent annual excess policy can be cost-effective at €60–€120/year.
For a one-off holiday, buying extra cover from the rental firm may be simpler, even if slightly more expensive.
Typical Costs of Extra Rental Car Insurance in Spain (2026)
Prices vary by company and season, but you may see:
| Type of Extra Cover | Typical Daily Range (2026)* | Notes |
|---|---|---|
| Super CDW / full protection (rental desk) | €10 – €30+ / day | Often removes or greatly reduces excess |
| Windscreen & tyre only bundles | €5 – €12 / day | Sometimes offered separately |
| Independent annual excess policy | €60 – €120 / year | Covers multiple rentals & countries |
*Actual amounts depend on the rental brand, car group, location and dates.
Does Your Own Car Insurance Cover Rental Cars in Spain?
If you already have car insurance in Spain for your own vehicle, you may wonder: "Am I covered when I rent a car?"
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
- • Must be checked specifically in the policy conditions
If you own a car in Spain and also rent vehicles, it can still be useful to work with an insurance broker to coordinate your overall cover and avoid paying for things twice when not necessary.
How to Protect Yourself When Renting a Car in Spain
Before Booking
- Check what is already included (liability, CDW, theft)
- Confirm the excess amount and deposit required
- Decide whether you prefer extra cover from the rental firm or independent excess insurance
- Read at least the key points of the insurance terms
At the Counter
- Make sure the staff explain the excess, what is and isn't covered, and the price of any optional extras
- Don't feel forced to buy extras you don't want – ask for time to think if necessary
- Take photos of the car before leaving (including wheels, bumpers, glass and interior)
During the Rental
- Park carefully – tight underground garages are a common source of damage
- Follow local rules and speed limits – speeding fines and serious accidents are expensive
- Report any new damage as soon as possible
On Return
- Arrive early enough for a proper inspection
- Take photos again, ideally with a time stamp
- Ask for a copy of the return report or confirmation that the car was checked
- If you later receive a charge you don't understand, you can dispute it with the rental company, your extra insurance provider, or your bank/card provider
How ExpatInsurances.es Can Help Frequent Renters and New Residents
ExpatInsurances.es is primarily a broker for ongoing insurance in Spain (car, home, health, business, etc.), but we regularly advise clients who:
- Are new to Spain and rent before buying a car
- Own property and rent cars several times per year
- Are unsure whether to keep renting or buy and insure their own vehicle
We can help you:
- Understand the differences between rental car insurance and own-vehicle insurance
- Decide when it is financially smarter to buy a car and insure it versus always renting
- Combine your overall protection: health, car, home and liability insurance in Spain
Expert reviewed
Written and reviewed by licensed insurance agents Maya Kallio and Marco Elsinger, who have helped over 15,000 expats in Spain since 2012.
Maya Kallio
Licensed Insurance Agent
Since 2012
Marco Elsinger
Licensed Insurance Agent
10+ years
Languages: English, Finnish, Spanish, German
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