Car Rental Insurance: Do You Really Need It?

Are you planning to visit Lisbon, Portugal? Do you know about the Beauty of this city? 

If not, you must be aware of it.

When you hear the word Portugal, your first thought might be of the vibrant Lisbon with its lovely streets or the well-known Algarve region in the south.

But, if you are a tourist, you should book your rent a car in Lisbon. Once you leave the big cities, your options for public transit are constrained and, as is customary, time-bound.

Through rent a car Lisbon, you may explore luscious vineyards, stunning seaside cliffs, and historic cities at your own pace. On the other hand, car insurance is a big element when renting your car. 

This article will tell you how to insure and rent a car Portugal Lisbon, information on driving conditions, and whether you need car insurance.

Why Should You Rent A Car Lisbon?

The most picturesque areas of Portugal are located inland and are challenging to get there by public transport.

Owning a car gives you more independence than anything else.

You control your schedule, so you do not need to worry about catching the final train or bus home. For roughly  £10 to  £20 per day, the car rental agency offers comprehensive protection insurance.

Of course, this flexibility has a cost, but every time you visit Portugal, you can rent a car for a very reasonable—read: inexpensive—price.

Are you prepared to tour Portugal at your own pace? Enjoy the flexibility of mobility by renting a car today.

Is It Mandatory To Insure A Rental Car?

Yes, it is Mandatory.

With the help of the insurance, you are shielded from any legal responsibility for any harm you may cause to people or property when driving a rental car in Portugal. The price of your rental automobile also includes the cost of fire insurance.

While renting a car on vacation in Portugal Lisbon rent a car, you can take advantage of inclusive prices, which are less expensive when ordered before your trip.

These costs for automobile rental insurance include a waiver for collision damage and, mostly. Also, cover the cost of replacing the vehicle in the event of theft.

Why Do You Need Insurance To Rent A Car Portugal Lisbon?

It is a requirement in Portugal to carry minimal third-party liability insurance while renting an automobile.

With most businesses, a Collision Damage Waiver (CDW) is automatically included in the cost of your automobile rental.

It is vital to remember that this frequently entails a large credit card deductible, so be sure you have enough accessible credit for the rental company to hold.

Additional insurance is not required, but if you wish to add it, include it in your initial booking because the rates are best.

You can also see if the insurance on your credit card covers Portugal.

The operation of these insurances is undoubtedly familiar to you if you have rented a car abroad.

Types Of Insurance

Simple CDW(Collision Damage Waiver)

There is the fundamental CDW. However, it frequently has a large deductible.

Most automobile rental businesses provide supplementary insurance packages in addition to the standard CDW.  It typically costs £10 to £30 per day.

Portugal's fundamental CDW is legally required and includes unrestricted third-party liability insurance.

You do not need to be concerned about this CDW because it is always included in the price of all automobile rentals.

Alternative Insurances

Additional insurance protects against excess, scratches, and damage to the wheels, mirrors, and windscreen, among other things.

These insurances are optional and unnecessary, given how loose driving is in Portugal. Additionally, car burglaries are less prevalent than they are in other nations.

Nevertheless, they can provide peace of mind sometimes.


Various rental companies have different policies about what constitutes damage.

Most multinational brands won't pay attention to scratches smaller than 2 centimetres, but cheap local businesses will bill you for any blemish, no matter how minor.

When comparing pricing, remember to account for this.

When you pick up your automobile, you should confirm this with the company because checking your vehicle for damage will be crucial.

How to stop getting pushed into buying more insurance

Suppose you have ever rent a car Portugal Lisbon. In that case, you know that when you pick up the vehicle, the rental agency frequently tries to upsell you on various extras, including supplementary insurance.

You must decide directly because you are unsure of the price that will be paid upfront.

Consider a beautifully comfortable bed when you want to unwind, especially after a lengthy trip. Simply put, there are better times to make such choices than now.

Portugal Reduces Rental Car Insurance

All automobile rentals in Portugal include liability and fire insurance, but you are not obligated to choose theft and collision coverage. There are several limitations, nevertheless, that you might want to take into account if you intend to use the range provided by your credit card issuer:

  • Credit card providers' rental car insurance policies may not cover some vehicle types.
  • Exotic cars, camper vans, cars costing at least £40650, and off-road vehicles are a few examples.
  • They might also exclude rentals from their coverage if they are from particular nations, limit their scope to rentals of fewer than 30 days, or both.
  • Credit card companies will also ask you to pay for repairs before submitting receipts for reimbursement.
  • Many will also wait to cover your deductible until you file an insurance claim.

Top recommendation for rent a car Lisbon Portugal

If you want to book a rental car in Portugal, Lisbon, or any city in Portugal, these recommendations will help you alot.

Walk Around and Inspect The Car In Question

Make sure to tour the area when you pick up your rental car in Portugal to ensure everything is in place.

In Portugal, you must keep a spare wheel, warning triangle, and reflective vest in your automobile.

Check if the vehicle has snow tires or chains in the trunk if you travel in winter. These are needed in many places, particularly in hilly locations, from November to April.

Avoid Driving In Crowded Areas and Choose a Smaller Vehicle

It is preferable to select a small automobile when you rent a car in Lisbon, Portugal, unless you require a lot of space or are planning to drive into the highlands.

It is because many streets are short, parking spaces are frequently insufficient, and petrol is reasonably priced.

It is, therefore, wise to decline the rental company's offer to upgrade you to a larger vehicle.

Put The Proper Fuel in Your Car

Although there are petrol stations everywhere in Portugal, preparing ahead is a good idea if you intend to travel to Lisbon. You can find out which is closest to you using Google Maps and other navigation tools.

The 1-2-3 Fuel app can assist you in locating the most affordable petrol stations along your journey. Portugal is one of the nations with the most expensive fuel.

Understand How Toll Roads Operate

Portugal's motorways are lined with toll highways, frequently faster than the nation's smaller departmental routes.

Portugal's toll highways operate slightly differently than those in other European nations. Electronic gates collect the toll instead of toll booths.

Portugal is the only nation that accepts cash or credit cards for toll payments. It has switched to an electronic toll payment system.

A manual or automatic gearbox?

In Portugal, Lisbon rent a car, and manual-transmission vehicles are more common, which means that automatic cars are harder to come by and cost more to rent—typically by a factor of two.

What to do: If you are not used to using a manual gearbox, it's okay before you start navigating foreign roads and signage; practice at home.

Can you get a car rental where you are going?

All major cities and airports have offices for car rental businesses. It holds for all of Portugal, including Lisbon, Madeira, and the Azores.

It advises you to get to your destination immediately.

Not only are many automobiles already reserved in advance, limiting your options, but booking a car ahead of time might also save you money.

When you rent a car online, you may compare the rates of the many rental car agencies and reserve a vehicle that fits your demands and budget.

Are you visiting Portugal? Avoid letting the adventure pass you by. Reserve your rental car in advance and take in the splendour of this dynamic nation.


Renting a car in Portugal might give you unprecedented flexibility to travel to attractive locations inaccessible by public transportation.

But for a hassle-free driving experience. Comprehending the finer points of rental car insurance and some useful advice is crucial.

Remember that all car rentals in Portugal come included with third-party liability insurance.

Additional coverage can be required depending on your preferences and situation. You can make the most of your trip to Portugal by being well-informed and organised.


Q:1 Do I need insurance to rent a car in Portugal?

Ans: In Portugal, all car rentals come standard with the legally needed unlimited third-party liability insurance. This insurance policy protects against damage to people or property when using a rental car in Portugal. The cost of renting includes fire insurance as well.

Q:2 How much does it cost to rent a car in Lisbon, Portugal?

Ans: When it comes to car rentals, Portugal is affordable. The period of the year you are travelling, the length of your trip, and the kind of vehicle you wish to rent are the main factors that affect the cost.

Q:3 Where in Portugal can I rent a car?

Ans: There are several trustworthy automobile rental companies in Portugal. On the mainland of Portugal, particularly Lisbon, Madeira, and the Azores, car rental firms have locations in all major cities and airports.