Guide
Insurance, excess and deposits
Every hire car in Portugal comes with third-party insurance and basic damage cover. The catch is the excess: the share of any damage you still pay, often €1,000 or more.
Checked 2026-11-05.
What the basic price includes
- Third-party liability, required by law.
- Collision damage waiver (CDW) and theft protection, which cap what you pay for damage or theft at the excess.
- Usually not covered at all: tyres, windscreen, underside, roof, keys and misfuelling, unless you buy extra cover.
Excess and deposit
The excess is the most you pay if the car is damaged or stolen. The deposit is the amount the company blocks on your credit card at pickup to make sure it can collect that excess and any fuel or toll charges. They are often similar amounts, and can be €1,000 to €3,000 for a small car with basic cover. The block is released after you return the car, which can take a week or more to show on your statement.
Two ways to reduce the excess
| The company's own cover at the desk | Separate excess cover | |
|---|---|---|
| Names | Super CDW, zero excess, premium or full protection | Excess reimbursement or full coverage bought with the booking or from an insurer |
| Cost | Usually the most expensive per day | Usually much cheaper per day |
| Deposit | Often reduced to a small amount or none | The full deposit is still blocked |
| If there is damage | You pay nothing more | The company charges you, then you claim it back |
Separate cover is cheaper but needs a credit limit high enough for the full deposit and a little patience if you claim. The desk cover costs more but makes pickup and return simpler, and is often required if you pay the deposit with a debit card.
At pickup and return
- Walk round the car and photograph or film every panel, the wheels and the windscreen, with the fuel gauge and mileage visible.
- Make sure existing damage is marked on the rental agreement before you drive away.
- On return, get the car checked and signed off, or take the same photos if the office is closed.
- Keep the fuel receipt from a station near the airport if the policy is full-to-full.