Renting in Lisbon? Car Rental Insurance Made Simple
Car rental insurance in Portugal can be confusing, especially for international travelers. Terms like CDW, SCDW, deductible, and excess appear everywhere — but what do they actually mean, and what coverage do you really need when renting a car in Lisbon?
In this guide, we’ll explain all types of car rental insurance, show you how to avoid surprise charges at the counter, and help you save money while staying protected.
🧾 What Insurance Is Required to Rent a Car in Lisbon?
By law in Portugal, every rental car must include basic third-party liability insurance (TPL).
This covers damage or injury to others — but not to your own vehicle.
To cover your rental car, you’ll need:
- ✅ Collision Damage Waiver (CDW) – may be included
- ✅ Theft Protection (TP) – sometimes included
- ⚠️ Super CDW (SCDW) or Full Coverage – optional, reduces or removes deductible
📊 Insurance Terms Explained
| Term | What It Covers | Included by Default? | Deductible / Excess? |
|---|---|---|---|
| TPL (Liability) | Damage/injury to other people/property | ✅ Yes (required) | €0 |
| CDW | Collision damage to rental car | ⚠️ Sometimes | Usually €1,000–€2,500 |
| TP | Theft of the vehicle | ⚠️ Sometimes | Same as CDW deductible |
| SCDW / Full Coverage | Removes or lowers deductible | ❌ Optional | €0 or very low (e.g. €100) |
| PAI | Covers personal injury to driver/passengers | ❌ Optional | No excess, limited payout |
💡 Deductible = amount you pay out of pocket if something happens.
💸 Don’t Overpay at the Airport
Compare real-time rental deals with no hidden fees or credit card needed.
💰 What Happens If You Don’t Buy Full Insurance?
- You’ll be responsible for the deductible (can be €1,000+)
- Rental company will block this amount on your credit card
- Any damage or scratch, even minor, could be charged
- You’ll have to deal with claims and paperwork
🛡️ 3 Ways to Get Car Rental Insurance in Lisbon
| Option | Price (avg/day) | Covers Deductible? | Notes |
|---|---|---|---|
| Buy from rental company | €15–€30 | ✅ Yes | Easy, but most expensive option |
| Buy external insurance (e.g. iCarhire, Revolut) | €6–€10 | ✅ Yes (reimbursement) | Pay upfront, claim later |
| Rely on credit card coverage | Free | ✅ Sometimes | Check your card terms and requirements |
✅ If you want zero deposit or plan to use a debit card, buying full insurance from the rental company is often required.
📌 Best Car Rental Providers in Lisbon with Transparent Insurance
| Company | Basic CDW Included? | Full Insurance Available? | Zero Deposit Option |
|---|---|---|---|
| Centauro | ✅ Yes | ✅ Super Relax Cover | ✅ Yes |
| OK Mobility | ✅ Yes | ✅ Total Comfort Pack | ✅ Yes |
| Drive on Holidays | ⚠️ Varies | ✅ Yes | ✅ Yes |
| Sixt | ✅ Yes | ✅ Premium Protection | ⚠️ Credit card needed |
| Record Go | ✅ Yes | ✅ Total Comfort Cover | ✅ Yes |
🧠 Pro Tip: Book through a platform like Discovercars or Rentalcars.com, which lets you compare insurance terms and prices clearly.
🧠 FAQs – Lisbon Car Rental Insurance
Q: Is CDW the same as full coverage?
A: No. CDW only limits your liability, but does not eliminate the deductible. Full coverage (SCDW) usually brings it to €0.
Q: Can I use my travel insurance instead?
A: Only if it includes car rental protection. Most don’t cover collision or theft.
Q: Will I need to show proof of insurance?
A: Only if declining the rental company’s policy and relying on your credit card/external plan.
Q: Is insurance mandatory in Lisbon?
A: Third-party liability is. CDW and others are optional but strongly recommended.
🧭 Tips to Save Money on Car Rental Insurance in Lisbon
- ✅ Book early to access full coverage cars before they sell out
- ✅ Compare offers that include full insurance upfront
- ✅ Consider external providers if your credit card doesn’t cover rentals
- ✅ Choose providers with zero-deposit policies to avoid holds
- ❌ Don’t buy insurance twice — avoid double coverage with credit card + rental company
