When travelling abroad, car rental insurance can seem confusing at first. Trying to understand processes that may not be the same as they are in Malta could add complexity and time delays to your trip.
However, checking the types of cover available in your destination and what policy would suit your individual needs could potentially save you significant time, stress and money.
In fact, arranging cover before you leave on a trip or vacation could be the answer and minimise any inconveniences you may have to navigate if you have to arrange cover while travelling.
In this article, we explore car rental insurance for Maltese residents and the key information you need when hiring a car for travel abroad.
What insurance comes with a rental car?
If you take out a basic level of rental car insurance, then it could possibly include:
This is the legal requirement for rental car drivers to have in EU countries. Third-party refers to anyone who might be included in a car insurance claim apart from you.
This cover can support compensation when you’re responsible for third parties who have an injury or whose property has been damaged as a result of your driving.
Discover more in our article: Third-party, fire and theft insurance: is it enough cover?
- Collision damage waiver (CDW)
A collision damage waiver is an agreement between a car rental company and you that reduces your financial liability if the car you have rented is stolen or damaged.
Typically, this is an optional add on to a policy. However, having a CDW does not necessarily mean you have no financial liability at all, as you may be responsible for an excess fee.
A rental excess is the amount you may still have to pay following covered damage or theft, in accordance with your policy’s terms and conditions.
It’s important to note that GasanMamo’s travel insurance includes cover for rental vehicle excess, which could be of real benefit if you are planning on hiring a car overseas.
Under our Standard and Executive cover, a car rental excess is covered automatically and now has increased limits to suit your individual needs.
Read more in our article: How to compare travel insurance policies the right way
What is car rental excess insurance?
What does the rental excess cover?
A car rental excess is the most you will be required to pay for repair or replacement costs if your rental car is stolen or damaged. When an agreement has a high excess, this could create a significant unexpected cost.
It’s important to know that the exact cover and excess limits depend on the car rental agreement and insurance policy.
What isn’t always covered?
With car rental excess, there could be some common exclusions, such as:
- Tyres and wheels: damaged alloys or a tyre blowout may not be covered.
- Windscreen: stone chips or cracked side windows are unlikely to be included in policy coverage.
- Undercarriage: scrapes to the chassis are generally not insured.
- Roof damage: impacts due to low bridges aren’t usually covered.
- Breaches of the rental agreement: negligence or drunk driving won’t be covered.
When securing your car rental insurance or cover through travel insurance, it’s essential to check the terms rather than assuming ‘fully covered’ means every type of damage is included in the policy.
Rental desk waiver vs standalone excess cover
A car rental company might offer you the option to reduce or remove the excess amount for an additional charge.
Should you buy the rental company’s excess waiver?
An excess waiver with your car rental company might sound convenient and helpful, but it could increase the overall rental cost you have to pay. Arranging this in real time without research or having an alternative option at the counter may feel like a stressful experience.
Looking into the specifics of your rental situation before you go on a trip and researching the opportunities available will help you make a well-informed decision, rather than a rushed one that could cost you more over the long run.
Can you arrange excess cover before you travel?
Yes, you can arrange rental vehicle excess cover in advance before you go on a trip or vacation. This will deliver a key benefit in that you will know your cover terms and details before you reach the car rental desk.
Before you go away, it’s recommended that you check your travel insurance with car rental cover policy limit so you know the exclusions, vehicles that are eligible and the travel destinations that your policy covers.
Key car rental insurance takeaway
Compare the cost and terms of the rental company’s waiver with the cover in your travel insurance policy, like the Standard and Executive policies with GasanMamo, before travelling as this will help you avoid making a last-minute rushed decision at the car rental desk.
Car rental insurance for Maltese residents travelling abroad
Maltese residents hiring cars overseas as part of a trip or vacation are advised to check if their travel insurance policy already includes rental vehicle excess cover. If you have Standard or Executive travel insurance with GasanMamo, it’s likely you will have this and with increased limits, subject to your policy terms.
As a result, this could mean you don’t need to purchase additional excess protection from a car rental company when hiring your rental vehicle.
What to check before collecting your car
Here is a short and simple list of items to check before you hire a rental car on your trip:
- Rental excess amount
- CDW and theft protection
- What parts of the vehicle are excluded
- Insurance policy limits
- Destination and vehicle eligibility
- Documentation required if the car is damaged or stolen
Common car rental insurance mistakes to avoid
Below are some errors you might want to avoid when hiring a rental car abroad:
- Focusing only on the headline rental price
The initial cost of car rental may sound attractive, but it could involve a substantial excess or additional insurance costs. Understanding the specifics and details of the rental will help you control your budget.
- Assuming CDW means you’re fully covered
A CDW does not mean that anything and everything is covered if something unexpected happens to your rental car or occurs when you’re driving the vehicle. An excess and certain exclusions may still apply, which makes it vital to check any agreement.
- Buying cover without checking what you already have
Reviewing your travel insurance policy before you leave Malta will help you ensure that you don’t purchase unnecessary additional protection at the car rental desk on your trip.
- Not documenting the vehicle
A sensible approach is to photograph any existing damage to the rental vehicle and check your rental agreement before leaving the car rental company and driving away. This will help you ensure you’re not charged for any damage that occurred before your rental started.
Check your rental car cover before you travel
Just like making sure your passport is in date, checking your travel insurance policy for car rental excess cover is crucial. GasanMamo’s Standard and Executive travel insurance policies include rental vehicle excess cover, subject to policy terms and limits.
Arranging your cover before you reach the rental car front desk will help you make an informed decision instead of a rushed one and ensure you don’t pay for extra protection you don’t actually need.
Get in touch with our friendly team to discuss your car insurance or travel insurance needs. Plus, you can take a look at the competitive, comprehensive benefits and optional extras on our travel insurance page.
GasanMamo Insurance is authorised under the Insurance Business Act and regulated by the MFSA.
Photo © by IJzendoorn from Getty Images Pro.
