RENTALSCAN · INSURANCE GUIDE

Which rental car insurance do you actually need?

CDW, TP, SLI, PAI — decoded. Know what's included, what's optional and what to watch out for at the counter.

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What is included in the base price?

Every rental car includes third-party liability by law. This covers damage you cause to other vehicles or property. However, protection for the rental car itself — such as collision damage, glass, tyres or theft — is usually not included in the base rate.

At the rental counter, agents are trained to upsell additional coverage. Knowing what you actually need beforehand can save you 15–25 € per day.

THE MOST COMMON INSURANCE TYPES

CDW (Collision Damage Waiver) · TP (Theft Protection) · PAI (Personal Accident Insurance) · SLI (Supplemental Liability Insurance)

What do the abbreviations mean?

CDW
Collision Damage Waiver — covers damage to the rental car in a collision. Usually includes an excess (deductible) of 500–2,000 €.
TP
Theft Protection — covers theft of the vehicle. Often sold together with CDW.
SLI
Supplemental Liability Insurance — raises the third-party liability limit above the legal minimum. Recommended for the US, Canada and some European destinations.
PAI
Personal Accident Insurance — covers medical costs for driver and passengers after an accident. Often redundant if you have travel or health insurance.

What is often added at the counter

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Without CDW you are personally liable for the full replacement value of the car — up to 20,000–50,000 €.

Can my credit card cover the excess?

Many premium credit cards (Visa Infinite, Mastercard Gold/Platinum, Amex) include rental car excess protection as a benefit. Before you rent, check whether your card covers the full excess and whether the destination is included.

Important: you usually need to pay the entire rental with that card, and the coverage typically applies only if you declined the rental company's CDW. Always read the fine print.

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Some travel insurance policies also include rental car excess coverage. Check your policy before paying for coverage at the counter.

What should you check in the contract?

The insurance conditions in the on-site contract can differ from what was agreed in your booking voucher. Common discrepancies include a higher excess than booked, additional damage categories not covered, or different coverage limits.

Spot discrepancies before you sign

Upload your booking voucher and photograph the rental contract. Our AI compares both documents and flags any differences — in 1–3 minutes, while you're still at the counter.

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The information on this page is for general guidance only and does not constitute legal or financial advice.