What insurance do you need for a rental car? Mainly damage cover with the lowest possible excess, because liability is already in the rental price. The excess is often EUR 1,000 or more. You can cover it from about EUR 99 a year with your own policy. Abroad you also need a Mallorca-Police, unless your German motor policy already includes it.
Published costs and amounts around insuring a rental car in Germany.
Example
Typical range
Excess on rental car damage cover
often EUR 1,000 and more
Zero excess add-on at the counter
often EUR 15 to 20 a day and more
Own excess policy for one trip, car
EUR 7.90 a day, refund up to EUR 2,500
Own annual policy for all rentals
around EUR 99 a year
Deposit on the credit card
about EUR 250 to 3,000
Mallorca-Police as part of your own motor policy
about EUR 5 to 20 a year, often included
As of October 2026, from guides by consumer advocates, insurers and comparison sites.
The annual policy price comes from a guide citing a test;
the Mallorca-Police price and the worked example are a guide value from our quoting practice.
We are happy to check whether your motor policy already includes the Mallorca-Police.
Worked example
One week rental car in Mallorca, EUR 1,000 excess
While parking the driver scrapes a bollard. The bumper repair costs EUR 1,200. This is how the three usual options compare.
No excess cover
EUR 1,000 taken from the deposit
Counter add-on, 7 days at EUR 15 to 20
EUR 105 to 140, damage EUR 0
Own single-trip policy, 7 days at EUR 7.90
EUR 55.30, EUR 1,000 refunded
Own annual policy
around EUR 99, valid for all rentals in the year
Every option is cheaper here than the excess. If you rent for two weeks or more a year, the annual policy usually works out cheapest. Calculation with guide values.
What the rental price already covers
Every rental car has motor liability insurance, otherwise it could not be driven. It pays for damage you cause to others: their car, a fence, injured people. It does not pay for damage to the rental car or for theft.
That is what damage cover is for, called Vollkasko or Haftungsreduzierung in German offers and CDW in English ones. It is in many prices, but almost always with an excess (Selbstbeteiligung). Tyres, wheels, glass, underbody and roof are often excluded in basic deals.
Cover
What it pays
Do you need it?
Motor liability
damage you cause to others
required by law and always included
Damage cover (CDW, Vollkasko)
damage to the rental car and theft
yes, otherwise you are liable up to the car's value
Excess waiver
your excess after a claim
yes, if the excess is high
Mallorca-Police
damage to others above the local minimum
abroad, if you do not already have it
Glass, tyres, underbody, roof
parts many damage covers exclude
useful on gravel, mountain roads and islands
Personal accident cover for passengers
fixed sums if passengers are injured
usually not, liability pays passengers anyway
The excess on a rental car is the real gap
An excess of EUR 1,000 or more is common for rental cars. A scratch while parking can then cost you the full amount, because the company keeps it from your deposit.
You have two options. At the counter, companies offer a zero excess add-on that often costs EUR 15 to 20 a day or more. Usually cheaper is your own excess reimbursement policy: for a single trip, for example, EUR 7.90 a day with up to EUR 2,500 refunded, or around EUR 99 a year for all rentals.
The catch with your own policy: the company first charges the excess to your credit card and you claim it back later. Your card limit has to be high enough.
Renting a car abroad
Abroad, the rental car's liability cover follows local rules. In Germany the legal minimum is EUR 7.5 million for injuries and EUR 1.3 million for property, in some countries it is far lower. Anything above that you would have to pay yourself.
The Mallorca-Police closes this gap, usually for Europe. Outside Europe a similar cover is often called Traveller-Police, with less uniform terms. Rental companies sell top-ups as LIS, SLI or ALI.
Book from Germany where you can and ask for the terms in a language you read well. Then you know the exclusions in advance and do not have to decide under time pressure at the counter.
What your own policies do
Your own German motor insurance does not pay for damage to a rental car. Many policies include the Mallorca-Police, though, so your liability abroad is already topped up. Your policy document (Versicherungsschein) tells you.
Private liability insurance (Privathaftpflicht) excludes damage caused while driving. If you do not own a car, you can often add the Mallorca-Police there or buy it separately. Some credit cards and breakdown covers include rental car protection, usually only if you paid the rental with that card.
When you need nothing extra
If you booked the rental car with zero excess damage cover including glass and tyres, you need neither the counter add-on nor your own policy. Decline anything that would double up.
If you rent only once a year for a weekend in Germany, an annual policy hardly pays off. A single-trip policy or an offer with cover included is enough.
Step by step
Check the offer for damage cover and the size of the excess.
Check whether glass, tyres, underbody and roof are excluded.
Look in your motor policy, credit card terms and breakdown cover for rental car protection and the Mallorca-Police.
Decide: book zero excess right away or take out your own single-trip or annual policy.
At pick-up and return, photograph all damage and get it confirmed in writing.
Checklist
Damage cover with a known excess in the contract
Excess covered, by the company or your own policy
Mallorca-Police in place when abroad
All drivers named in the rental contract
Credit card in the main driver's name with enough limit for the deposit
Photos of the car at pick-up and return
Common mistakes
Buying an expensive add-on at the counter that you already have
Assuming your own motor insurance pays for damage to the rental car
Letting your partner drive without being named in the contract
Overlooking that tyres, glass and underbody are excluded
Taking no photos at return and later paying for damage you did not cause
Questions and answers
Frequently asked
Does my own car insurance pay if I damage the rental car?
No.
Only the rental car's damage cover pays.
Your own motor policy helps abroad at most with the Mallorca-Police for damage to others.
Is the counter add-on worth it?
It is convenient, because you pay nothing out after damage.
For longer rentals your own policy is usually much cheaper.
Does a rental car accident affect my no-claims class?
Usually not, because the rental company's insurer paid.
Your own no-claims class (Schadenfreiheitsklasse) stays the same.
Do I need the Mallorca-Police in Germany?
No.
In Germany the German minimum cover applies, the Mallorca-Police is meant for abroad.
What if someone else drives?
Only drivers named in the contract are insured.
If someone else drives, cover can be lost and you are liable yourself.
Does my credit card cover the rental car?
Some cards do, usually only if you paid the rental with it and often with limits.
