Auto Insurance In Europe: Am I Covered?

If you're planning a trip to Europe and intend to drive, it's important to understand the ins and outs of auto insurance. The validity of your auto insurance in Europe will depend on a variety of factors, including the type of insurance you have, the country you're visiting, and whether you're renting or using your own vehicle. Let's explore the topic further and provide some clarity on auto insurance coverage in Europe.

Third-party liability insurance

When renting a car in Europe, the daily rate you pay typically includes the minimum third-party liability insurance required in the country you're visiting. This covers damage to property or injury to anyone other than the driver. However, it does not cover other costs, such as repairs to your own vehicle.

If you are taking your own car to Europe, you will need to check with your insurer whether your current contract will be valid in the country you are travelling to. In principle, you can also insure your car in an EU country that is different from your country of residence, but you must check if the insurance company offers international services.

If you are renting a car in Europe, you may be offered the option to purchase additional insurance, such as collision damage waiver (CDW) or loss damage waiver (LDW), which covers damage to the rental car. This is not typically included in the basic rental fee.

Credit card coverage

To take advantage of credit card coverage, you will need to pay for the rental car using the credit card that offers this benefit and decline the rental company's collision damage waiver. Some rental car agents in Europe may be skeptical of credit card coverage, as it is rare for European-issued credit cards, so it is recommended to bring a printout of your credit card's car rental coverage policy. In the event of an accident, the rental company will charge your credit card for the damages, and you will need to file a claim with your credit card company for reimbursement.

It is also important to note that credit card coverage may not be available for certain types of luxury vehicles, and the coverage limits may vary depending on the type of credit card you have. Therefore, it is essential to carefully review the terms and conditions of your credit card's rental car insurance before relying on it for coverage in Europe.

Country-specific requirements

When it comes to auto insurance in Europe, there are a few things to keep in mind. Firstly, if you are renting a car in Europe, the daily rate you pay typically includes the minimum liability insurance required by the country you are visiting. This covers damage to property or injury to anyone outside of the rental vehicle, but it does not cover damage to the rental car itself or injuries to the driver. For that, you will need additional coverage, such as a Collision Damage Waiver (CDW) or Theft Protection (TP). Some credit card companies offer this coverage for free if you pay for the rental car with your card, but it is important to check before you travel, as some countries, like Italy, may be excluded.

If you are taking your own car to Europe, you will need to check with your insurance provider to see if you are covered. All UK car insurance policies provide minimum third-party cover to drive in EU countries, but many policies have a limit on the number of days you are covered, such as 90 days per year. If you want the same level of cover as you have in the UK or need cover for a longer period, you may need to pay extra. It is also worth discussing the specifics of your journey with your insurance provider so they can tailor the cover to your trip.

In terms of country-specific requirements, here are some examples:

• Italy: In Italy, you are required to have a CDW and TP for your rental car. Many US credit card companies do not offer rental car coverage in Italy, so you will need to purchase this additional coverage from the rental company.
• Ireland: It is difficult to find a credit card company that will provide CDW and TP for Ireland. If you do have a card that covers this, you must bring written proof to avoid being charged for the insurance locally.
• France: French insurers are not obliged to take into account your previous claims record or any reductions you may have been eligible for when calculating your premium. So, even if you have a good driving record in your home country, you may be charged a higher premium in France.
• Spain, Malta, and Cyprus: If you are driving your own car in these countries, you will need to display a UK sticker, regardless of what is on your number plate.
• Eastern Europe: Depending on your itinerary, you may be required to purchase travel insurance from the supplier to cross into specific countries in Eastern Europe.

Rental company options

When renting a car in Europe, the daily rate you pay usually includes the minimum liability insurance required in the country you're visiting. This covers injuries or damage you cause to other drivers in an accident. However, this insurance does not cover any damage to the rental car itself.

Rental car companies in Europe will usually require you to purchase a collision damage waiver (CDW) to cover any damage to the rental car. This is not technically insurance but an agreement that you won't be financially responsible for any damage. CDWs can be expensive, adding around 30-40% to your daily rate, and they don't cover the whole car. They also have large deductibles, which you can avoid by paying more for a "super CDW" or "extended CDW".

Some rental companies offer additional coverage options, such as loss damage waiver (LDW) including theft protection, personal accident protection, tyre and windshield coverage, and roadside assistance protection.

If you want to avoid the hassle of dealing with rental companies, you can consider purchasing the Rental Car Damage Protector from Allianz Global Assistance, which provides primary coverage for covered collision, loss, and damage up to $75,000 in almost every country, for only $11 per calendar day.

Additional insurance

When driving in Europe, it's important to understand the different types of insurance coverage available and ensure you have the necessary protection. Here is some information about additional insurance options:

Understanding Third-Party Liability Insurance:

Third-party liability insurance is compulsory when registering a car in any EU country, and it covers any damage caused to property or injuries to people other than the driver in the event of an accident. This type of insurance is typically included in UK car insurance policies when driving within the EU, providing the minimum level of coverage. However, it does not cover other costs, such as repairs to your vehicle.

If you want more comprehensive coverage, you can consider the following additional insurance options:

• First Party Liability Insurance: This optional insurance extends your coverage to include injuries to the driver, damage to your vehicle, theft, vandalism, and legal assistance. It's important to check with your local insurer about the specific terms and conditions of this additional coverage, as there are no EU-wide standard rules.
• Rental Car Insurance: If you're renting a car in Europe, you may want to consider separate coverage for theft or damage to the rental vehicle. Some credit card companies offer this type of coverage at no additional cost when you use their card to pay for the rental. However, it's important to verify this before your trip, as coverage may vary by country and card type.
• European Breakdown Cover: While your car insurance may cover you across Europe, your breakdown cover might not. It's worth considering European breakdown cover for added peace of mind when travelling on the continent.
• Temporary Car Insurance: If your existing insurance doesn't provide the desired level of coverage for driving in Europe, temporary car insurance policies are available. These policies can be tailored to the length of your trip, ranging from one hour to 28 days.
• Green Card System: The Green Card is an internationally recognised car insurance document. While it is not required within the EU, it may be necessary when driving in other European countries like Turkey, Russia, or Albania. The Green Card guarantees compensation in the event of an accident with a driver from another country.

It's important to carefully review your current insurance policy and understand the limitations and exclusions. Contact your insurance provider to discuss any additional coverage options and ensure you have the appropriate protection for your trip to Europe.

Frequently asked questions