When you get a car rental in Europe, you may be highly encouraged to buy the insurance policy directly from the rental car provider. But what about the other options out there, like your credit card or a travel insurance policy with rental car coverage?
Renting a car domestically is different than renting a car abroad. Plus, the car insurance you already have may not cover you intentionally, so what’s next? We will go over the best options for car rental insurance in Europe and how you can get covered for your next European trip.
What You Will Learn in This Guide:
- Why vehicle type, local European taxes, and adding extra drivers can significantly impact your budget for a rental car
- How travel insurance plans can provide a more comprehensive and cost-effective alternative to insurance from the rental car counter
- A side-by-side look at the top travel insurance plans with rental car coverage and estimated costs
- The benefit of bundling rental car protection with broader travel benefits like medical coverage and trip cancellation
How Much is a Car Rental in Europe?
While there are some typical factors you may think about when it comes to the cost of a rental car in Europe, such as how long you are renting the car for and the size of your vehicle, there are other factors that you may not have been aware of.
Manual vs Automatic Rental Cars
When renting a car in Europe, you will have the option to get either a manual or an automatic vehicle. It is important to keep in mind that manual vehicles are often more common and cost-effective compared to automatic vehicles in Europe. Especially during the peak travel season in Europe, automatic cars can sell out quickly, increasing the prices further.
Taxes on Rental Cars
The universal tax that you may experience when renting a car in Europe is the Value-Added Tax (VAT), which is generally about 18% to 27%, depending on the country. While the VAT tax on items like goods, clothing, and souvenirs can be reclaimed at the airport when you leave, the VAT tax paid on a car rental is generally not refundable.
Extra Drivers
If you need to add other drivers to your rental car, you can expect to pay around $20 to $50 to add another driver. Without adding another driver, if you were to get into a car crash with someone who was not listed as an authorized driver, your insurance may not cover you.
On top of these considerations, you also have to think about whether or not you would get rental car insurance from the car rental provider. Many of them will automatically include very basic coverage for collisions and theft, and others will have monetary add-ons to make sure you have almost full coverage.
Do You Really Need Insurance on a Car Rental in Europe?
While you are renting a car in Europe, it is absolutely worth it to get insurance for your car rental, and even in some countries like Italy, it is required. Here are a couple of scenarios as to why car rental insurance for Europe can be beneficial:
Scenario #1: Collision on a Small Road in Europe
While driving on a small coastal road on the Amalfi Coast, the road is barely wide enough for one car, even though it is a two-way street. While you are driving, a local flies around the corner, and you have to pull over against a stone wall, which clips your side mirror. A rental car insurance plan from the rental car company would include the standard Collision Damage Waiver, but it doesn’t cover damage related to your mirrors, windshield, or tires. For an extra price, you can secure an add-on for full collision coverage, or you can even consider a travel insurance plan that doesn’t exclude these kinds of headaches.
Scenario #2: Mandatory Insurance in Certain European Countries
Imagine you relied on your credit card’s rental car insurance while you were in Italy, thinking you would be covered. Many credit cards actually often exclude countries like Italy because of its requirement for specialized insurance that credit cards cannot legally replace. Plus, a place like Italy often comes with high rates of expensive claims or car thefts, hence why it may be excluded. It is always important to look at your credit card’s description of coverage and understand what countries may not be covered.
While you shouldn’t risk your trip by just getting no coverage, you don’t need to necessarily buy it at the rental counter or rely on your credit card. There are many alternatives to getting the appropriate rental car coverage for your trip to Europe, including a comprehensive travel insurance plan that can cover your rental car.
Do All Travel Insurance Plans Include Rental Car Insurance for Europe?
Not all travel insurance plans will include rental car coverage. While some plans may automatically have coverage for your rental car, other plans will have an optional add-on to include protection for a minimal price. For example, a plan like iTravelInsured Travel LX will automatically cover rental car damage and theft for up to $40,000. Meanwhile, a plan like FlexiPAX, which is on the more affordable side, will have an optional add-on coverage available for rental car protection.
Compare Travel Insurance Plans with Rental Car Coverage in 2026
We have compared a selection of top travel insurance plans that offer rental car coverage. This coverage is either already provided by a travel insurance plan or is available as an optional add-on purchase.
The prices below are an estimate for a 45-year-old going on a week-long trip to France with $1500 in prepaid, nonrefundable trip expenses. For exact pricing, we recommend using our quote tool for a customized travel insurance comparison.
| Is Rental Car Coverage Included? | Trip Insurance Plan | Base Plan Cost (Est.) | Rental Car Add-on Cost | Total Cost (7-Day Trip) | Coverage Limit |
| Included | iTravelInsured Travel LX | $140 | $0 (Included) | $140 | Up to $40,000 |
| Included | iTravelInsured Travel SE | $79 | $0 (Included) | $79 | Up to $40,000 |
| Add-On | Discovery | $36 | ~$23 | $59 | Up to $35,000, $250 deductible for loss greater than $2,000 |
| Add-On | FlexiPAX | $71 | ~$49 | $120 | Up to $30,000 |
| Add-On | Pathway Premium | $72 | ~$87 | $159 | Up to $50,000 |
Why Should I Consider a Travel Insurance Plan with Rental Car Coverage for Europe?
Considering a travel insurance plan for your trip to Europe can give you more comprehensive coverage than your standard rental car insurance from your rental car company. Rental car insurance under a travel insurance policy can reimburse you up to the stated maximum benefit amount if your rental car is:
- Damaged in Europe due to a collision, theft, vandalism, or a natural disaster (hail, fire, etc.)
- The rental car is stolen and cannot be recovered
But the great part is that a travel insurance plan can cover you for other aspects of your trip, something the rental car insurance company cannot. This can include:
- Trip Cancellation
- Trip Delay
- Trip Interruption
- Medical Coverage
- Medical Evacuation + Repatriation
- Lost or Delayed Luggage
- And more…
So not only do you get coverage for your rental car, but your trip and medical expenses could be covered! Even if you have a credit card with travel and rental car insurance, it is important to compare the coverage against other options, like a third-party travel insurance plan. This side-by-side review helps identify potential gaps, especially country-specific limits on rental car coverage.
What Are The Best Travel Insurance Plans with Rental Car Coverage for Europe?
The best travel insurance plans will depend on the amount of coverage you are looking for and its cost, which can vary depending on many factors.
Best Cheap Travel Insurance with Rental Car Coverage Add-on: Discovery
Best Travel Insurance with Rental Car Coverage Included and Comprehensive Coverage: iTravelInsured Travel LX
Best Travel Insurance with Rental Car for a Trip to Europe: iTravelInsured Travel SE
Who Is the Most Reliable Travel Insurance?
The next time you go on a trip to Europe and need a rental car, consider protecting your trip with a travel insurance plan through VisitorsCoverage. It is easy to compare plans using our travel insurance comparison tool, which can help you make the best travel insurance decision for your trip to Europe.
If you ever need assistance or have any questions about securing the best travel insurance with rental car coverage, don’t hesitate to contact our award-winning licensed insurance experts.
- Insurance is legally required in certain countries, such as Italy, where credit card coverage is often not accepted as a valid replacement
- Standard Collision Damage Waivers from rental companies often exclude high-risk items like side mirrors, windshields, and tires
- While some premium travel insurance plans include rental coverage automatically, more affordable plans often offer it as a low-cost optional add-on
- Choosing a travel insurance plan over a standalone rental insurance policy provides extra security for non-automotive issues, such as medical emergencies, trip disruptions, and lost luggage
Frequently Asked Questions About Travel Insurance with Rental Car Insurance for Europe
Does travel insurance cover rental car accidents caused by weather like hail or flooding?
Yes. Travel insurance with car rental coverage generally covers damage due to natural disasters or other events outside of your control. Coverage limits can vary from policy to policy, so it is important to check your plan’s “Description of Coverage” to understand its limits.
What isn’t covered by travel insurance with rental car coverage for Europe?
Limitations and exclusions will vary from plan to plan, but in general, travel insurance with rental car coverage will not cover the following:
- Any loss that occurs from driving under the influence
- Failure to report the loss or accident to local authorities or the rental car company
- Any loss that occurs from street racing
- Any loss attributed to mechanical failure or breakdown of the vehicle
- Any loss caused by negligence by the driver
Does travel insurance include roadside assistance?
Standard travel insurance policies don’t include roadside assistance directly, however, almost all policies include a 24/7 assistance service, which could help you if your rental car is damaged or stolen, and the documents you need to prepare a claim.
Is rental car insurance mandatory when I rent a car in Europe?
It depends on the country. Countries like Italy and Ireland, for example, require rental cars to have specific coverage for Collision Damage Waiver (CDW) and theft. Even if it isn’t required, rental car insurance is still recommended for those who are renting a car during their travels to keep you protected against a substantial financial burden if something were to happen to the vehicle while you are in Europe.
Does rental car insurance cover me if someone steals something from my vehicle while I am in Europe?
Standard rental car insurance usually does not cover personal belongings stolen from the vehicle. However, rental car insurance under a travel insurance policy can provide reimbursement if your rental car is damaged due to theft while you are in Europe. However, pure negligence of leaving valuables out in the open may not be covered.
Other than my rental car, what else can travel insurance for Europe cover?
Trip insurance can cover any of your prepaid, nonrefundable costs for your European trip, meaning anything that you can not get back if you have to cancel. Prepaid, nonrefundable costs include:
- Flight costs
- Prearranged transportation
- Hotel or stay accommodations
- Event tickets
- Tours
- Cruise costs
How can I buy travel insurance for Europe online?
You can purchase travel insurance with rental car coverage for Europe online through a travel insurance marketplace like VisitorsCoverage. Purchasing your travel insurance before your trip is ideal to compare coverage, review insurance exclusions, and avoid last-minute pressure.
How do I file a travel insurance claim for my damaged rental car in Europe?
To file a travel insurance claim on your rental car, you would need to gather the following:
- The contract between you and your rental car company
- An official accident report, including police reports, roadside assistance, or other official reports
- Estimates for your repairs, including an itemized statement of your invoice
- Photos of your damaged rental car
- Proof that you paid for the rental car damages
If you ever need assistance with understanding what documents you may need to file a claim, feel free to reach out to the 24/7 assistance services number on your policy ID.
