Do I need supplemental liability insurance when renting a car?

If you have been living and working in Spain for a while, you may have had to rent a car at some point. Either when you arrived in the country, or if you wanted to make a one-off trip, or simply to be able to move from one place to another until you buy a new one in your new place of residence. And one of the things we are most concerned about when renting a car, beyond price and comfort, is safety. 

As a general rule, a basic compulsory insurance is included in the rental price, but surely when choosing your rental car you have also asked yourself Do I need supplemental liability insurance when renting a car? And when it comes to our safety and that of our loved ones, every precaution seems to be too little. That is why in this article we will answer this question, so please keep reading and take note before renting the car you need.

How does rental car insurance work?

Let's imagine that you arrive at a new destination and you are in need of a car for a short period of time, perhaps a few days or a couple of weeks. The flexibility and convenience that car rental companies offer are just what you need. There are several international companies operating in Spain that you may be familiar with, such as Hertz, Avis or Europcar. All of them have agreements with insurance companies to include in the rental price the compulsory Civil Liability insurance that all cars must have in order to circulate in Spain. With this insurance you are covered against damage you might cause to third parties. 

But when you rent a car there are three main players in the game: the rental company, the insurer and you, the person who rents and drives the car. So what happens if you have a small accident?. Firstly, the civil liability insurer will pay the damages that your car causes to third parties, i.e. it will pay the occupants of the other vehicle involved in the accident, if necessary.

The important thing to bear in mind is that this is a compulsory minimum insurance. Therefore, you have the option of taking out additional insurance to be prepared for various unforeseen events. 

For example, in this scenario, the lessor (i.e. the company that rents you the car) can claim the costs of the damage you caused to the car, which you will have to pay. This situation would not happen if you are the owner of the car. Then, if you have such additional coverage as the driver of a hired car, you would be able to have that claim covered from the insurer.

Do I need supplemental liability insurance when renting a car?

Knowing all this, you may now be thinking: Should I take out a more comprehensive insurance policy or not? Well, before making any decision, take a look at the following advice:

1.- Review your personal insurance policy.

Before taking out any extra insurance policy, you should check the personal coverage of the insurance policy you have already taken out. Normally these do not cover temporary rental cars, but we still advise you to check the coverage you already have, in order to rule out extra expenses.

2.- Check with the credit card company.

You may not be aware of this advantage, but some credit cards such as Visa or MasterCard include insurance for rental cars. For this cover to be effective, you should pay for the entire rental in full with your card and the cardholder must be the main driver on the rental contract. If there are other authorised drivers, they should be listed on the rental contract. In any case, it is important to check the conditions of your credit card to access the insurance, and to check what the coverage would be.

3.- Consider the destination and assess risks

When considering extra insurance, you should also take into account the characteristics of your destination. Moving in a big city is not the same as moving in a rural area, both for parking and driving. The weather will also determine the circumstances of your trip. Possible snowfall, frost, storms or floods would be more likely in one place than in another. 
The same goes for the level of conflict or the crime rate of the destination. Some areas may be more dangerous than normal, where you could be the victim of theft or vandalism that could make your trip more difficult. Naturally, this could also be taken into account when deciding whether or not to take out extra insurance.   

Reviewing these points will make it easier for you to make a decision if you are not yet familiar with the world of car insurance. At Caser Expat Insurance, although they do not offer cover for rental cars, they do have comprehensive and flexible insurance policies to suit the needs of all types of drivers, whether they are using their own vehicle or looking to protect themselves against other risks. So if you need insurance for your personal car, I encourage you to take a look at the different options. You can also get a quick quote through the Caser website.

Extra tips when renting a car

• Whether you have a limit of kilometres per day or per rental period, or if the mileage is unlimited.
  
  
• Whether you have to pay a franchise or deposit (normally you don't have to pay this if you take out additional insurance).
  
  
• In case you plan to leave the country, you should check what your rental geographic cover is. Depending on the policy and the rental company, you may or may not be covered if you leave Spain.
  
  
• Whether the additional driver is included in the rental or whether you will have to pay extra for him/her.
  
  As you can see, there are many questions that arise when renting a car and insuring it. The next time you ask yourself Do I need supplemental liability insurance when renting a car? remember everything we have told you and, more importantly, don't be afraid to be too careful when checking contracts and policies. After all, this is the best way to avoid any unpleasant surprises during your trip.