Car rental insurance in Mallorca explained
What is usually included
Third-party liability insurance is compulsory in Spain, so every rental car has it. It covers damage and injury you cause to other people and their property, not damage to the rental car itself. Rental prices usually also include some form of collision damage waiver (CDW) and theft protection. These are not full cover: they limit your liability to an amount called the excess.
The exact products, names and limits differ between providers. Always read the cover description in your booking and the rental agreement rather than relying on the product name alone. This guide gives general information only and is not insurance or legal advice.
What the excess means
The excess (also called deductible) is the maximum amount you can be charged if the car is damaged or stolen while basic cover applies. It can be several hundred euros or more, depending on the car category. To make sure you can pay it, the provider usually blocks a deposit of a similar size on your credit card. Our guide to credit cards and deposits explains how this works.
The excess applies per incident. Two separate incidents can mean two excess amounts.
Three ways to reduce or remove the excess
First, the provider’s own extra cover, often called super CDW, full cover or zero excess. It costs more per day, but if damage happens the provider carries the cost and the deposit is often much lower. This is the simplest route, with the least paperwork.
Second, separate excess insurance from a third-party insurer. It is often cheaper, but the usual process is that you pay the provider’s excess first and then claim it back from the insurer. The provider may still block the full deposit. Check that the policy covers Spain, your car category and the rental period, and read the exclusions and the claims procedure before you rely on it.
Third, some credit cards include rental car cover. Conditions differ widely: you may have to decline the provider’s cover, pay the rental with that card and follow strict reporting rules. Ask your card issuer for the written terms.
What is often not covered
Even with reduced-excess cover, certain items are often excluded or covered separately. Typical examples are tyres, windscreen and glass, the underside of the car, the roof, interior damage, lost keys, wrong fuel in the tank, and damage on unpaved roads. Cover can also be void if the driver is under the influence of alcohol or drugs, if an unauthorised person drives, or if the car is used against the terms.
Some providers sell an extra product for tyres, glass and underside. If you plan to drive on mountain or country roads, check whether this makes sense. Roadside assistance and lost-key cover can also be separate options.
What to do after damage, an accident or theft
Stay safe and call 112 if anyone is hurt. Contact the provider’s assistance number as soon as possible and follow its instructions. Do not agree to repairs without approval. Take photos of the scene and the damage, note the other party’s details and complete the accident report form that should be in the car. For theft or serious damage, a police report is often required for the claim.
Report the damage when you return the car, and keep copies of all paperwork. If you use third-party excess insurance, keep every receipt and follow the insurer’s claim steps and deadlines.