Car Rental Insurance in Portugal — What’s Required

📝 Is Insurance Required for Car Rentals in Portugal?

Yes — car rental insurance is required in Portugal, but most providers include the legally mandatory coverage (Third-Party Liability and basic Collision Damage Waiver) by default. Optional extras like full coverage, theft protection, and zero-excess insurance can be declined if you’re covered by your credit card or third-party policy — but only if you present proof.

✅ Quick Answer

Yes — car rental insurance is required in Portugal, but most providers include the legally mandatory coverage (Third-Party Liability and basic Collision Damage Waiver) by default. Optional extras like full coverage, theft protection, and zero-excess insurance can be declined if you’re covered by your credit card or third-party policy — but only if you present proof.

🇵🇹 What Insurance Is Required by Law in Portugal?

By Portuguese law, every rental car must include:

✅ Third-Party Liability Insurance (TPL)

Covers injury or damage to other people, vehicles, or property.
➡️ Always included — non-negotiable.

⚠️ Basic Collision Damage Waiver (CDW)

Covers damage to the rental car with an excess (deductible) between €900 and €2500.

➡️ Included in most rentals, but only partial coverage.

🛡️ Optional Insurance Coverages Explained

📌 If you decline SCDW and damage the car, you may be liable for the full deductible.

💳 Can I Use Credit Card Insurance Instead?

Yes — most travel credit cards (like Chase Sapphire or Amex Platinum) include rental car coverage if you:

• Pay for the rental with the card
• Decline the rental company’s insurance
• Are the main driver
• Stay within country/time limits

✅ This can save you €100+ per rental, but always bring proof of coverage and read exclusions (e.g., luxury cars, SUVs, one-way rentals).

💼 Third-Party Insurance Providers

You can buy full coverage separately when booking online via:

• Discovercars (adds €6–€9/day)
• RentalCover
• AXA, Allianz, or CarInsuRent

🧠 Pros: Cheaper than at the counter
⚠️ Cons: You’ll still pay the deductible upfront and must file for reimbursement later

💸 Insurance Cost Example – With vs Without Full Coverage

📌 Without full coverage, rental companies will block €900–€1500 on your card.

🚧 What Happens Without Insurance?

If you decline all optional insurance and don’t have your own:

• 🚗 You’re liable for full damage up to the excess
• 🚨 If uninsured and at fault, third-party claims can cost thousands
• 🛠️ Small issues (e.g., chipped windshield) may cost €300+

⚠️ Never rent without at least basic CDW and TPL.

✅ Summary – What You Actually Need

• ✅ TPL (included) → Legal minimum
• ✅ CDW (usually included) → Covers rental car with high excess
• 🔁 SCDW / Full Insurance (optional) → Lowers or removes excess
• 💳 Credit card or 3rd-party policy? → Decline SCDW with proof
• 🛡️ Nervous about risk? → Add full insurance for peace of mind

🔗 Compare Insurance Options Easily

Use autolisboa.com to:

• View Lisbon car rentals with and without full coverage
• Filter by deposit rules and insurance included
• See provider reviews based on claims and refund experiences

❓ FAQ

Q: Is car insurance included in my rental in Portugal?
A: Yes, basic third-party liability and often CDW are included.

Q: Do I need to buy full insurance?
A: No, but you’ll be responsible for any damage up to the deductible.

Q: Can I use my credit card insurance instead?
A: Yes, but bring proof and check the card’s coverage terms.