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Types of insurance for car rental in Greece

Types of insurance for car rental in Greece

Maximize your holiday enjoyment by exploring the vibrant landscapes of Greece at your own pace – a feat made possible through the convenience of car rental. However, it’s essential to understand that car insurance in Greece is not just an option; it's a requirement for all rental vehicles. This guide offers you a comprehensive breakdown of car insurance Greece essentials, ensuring your driving experience is not only memorable but also fully compliant with local regulations.

Let's dive into the intricacies of securing the right car insurance in Greece for your rental car, making your Greek escapade both safe and spectacular.

 

Table of Contents:

Car Rental Insurance In Greece

In Greece, car insurance is a crucial component of the car rental contract, and it is mandatory to have at least basic coverage before you can rent a car. This insurance is primarily beneficial to the renter, offering financial protection against potential costs arising from accidents for which they are at fault, or if the vehicle incurs damage or is totaled.

There are different types of insurance, each designed to safeguard against specific risks. Consequently, car rental agreements typically present multiple insurance selections to cater to varying levels of coverage. Most drivers opt for comprehensive insurance to ensure the highest level of protection while renting a vehicle.

Types of car insurance for Rental Car in Greece

Car insurance is available in two primary forms

  1. standard (or basic) 
  2. extended coverage.

Your choice between these options will be influenced by your personal risk tolerance, budgetary constraints, and the regulations set forth by the rental company. In Greece, the price for car rental insurance, like the rental rate itself, is determined based on the duration for which the vehicle is used.

Standard insurance for Rental Car in Greece

Standard Insurance Inclusion

  • Included in the base car rental rate.

Theft Protection (TP)

  • Covers car theft.
  • Includes a deductible, which is specified in the agreement.
  • Deductible amounts may vary by the type of insurance.
  • Personal items inside the car are not covered.

Deductible

  • Represents the renter's maximum financial liability.
  • Limits the renter's payment to the deductible amount if the rental terms are met.
  • It varies by car and insurance type.
  • It is different from a deposit.

Third Party Liability (TPL)

  • Covers damages caused by the renter to others in an accident.
  • Insurance pays for third-party repairs if the renter is at fault.
  • Without extended insurance (CDW, SCDW, FDW), the renter pays for rental car repairs.
  • If the renter is not at fault, damages are covered by the at-fault driver’s insurance.

Renter’s Responsibility

  • Liable for damage caused by their own fault, such as colliding with a tree.
  • Responsible if the at-fault driver flees the accident scene.

Insurance Policies for Car Rental

  • Mandatory for renting a vehicle.
  • Without these, car rental is not possible.
  • CDW is also mandatory in reputable rental companies, though not universally.

Booking Considerations

  • Carefully review included insurance types in the booking price.
  • Our website clearly specifies all conditions during registration.

 

Extended Insurance in Greece

In Greece, extended car insurance comes in two forms: one with a deductible and another that does not require a deductible.

Extended Insurance

  • Two types: with deductible and without deductible.

CDW (Collision Damage Waiver)

  • Includes a deductible.
  • Often part of standard insurance from rental companies.
  • Renter pays up to the deductible amount; the insurance covers the rest.

CDW Exclusions

  • Does not cover wheels, glass, passenger compartment, keys.
  • Damage on dirt roads not included.
  • Excludes theft or crashes due to renter's fault.

SCDW (Super CDW)

  • CDW with a reduced or zero deductible.
  • Offers greater protection but at a higher cost.

FDW (Full Damage Waiver)

  • No deductible required.
  • Renter pays nothing if rental and insurance terms are met.

FDW Exclusions

  • Damage to wheels, car glass.
  • Passenger compartment damage.
  • Use on ferries.
  • Damage on dirt roads.
  • Use outside the permitted operation area.

Rental Agreement Clarity

  • Discuss any concerns with rental staff when signing.
  • Ensure all terms are clear and documented.

Comprehensive Insurance Options

  • Some companies offer complete coverage for all damages.
  • Provides peace of mind but at the highest cost.
  • Verify all inclusions in the rental agreement.

Violations of the insurance agreement in Greece

Adhering to the road rules and Greek laws is part of your rental agreement. Here are some important guidelines to keep in mind

  • Please refrain from driving if you have consumed alcohol or drugs, as this will invalidate your insurance coverage. For your safety and others, it's wise to avoid drinking and driving altogether.
  • Ensure that only drivers listed on the rental agreement operate the vehicle. This helps maintain insurance validity.
  • Drive with care and attention at all times to avoid reckless behavior.
  • Stay on designated roads suitable for your rental car. Off-road driving is not permitted and could lead to unnecessary damage.
  • In the unfortunate event of an accident or damage to the car, please report it immediately to the rental or insurance company.

Should there be a case where the renter significantly breaches the law as described, the insurance company may be unable to provide coverage. In such instances, the renter may need to personally address any resulting matters with the car rental company, law enforcement authorities, and potentially, the legal system.

Documents for insurance registration in Greece

To secure car insurance in Greece, which is typically arranged when signing the car rental contract, you will need the same documentation required for the car rental itself. The essential documents are

  1. An international passport
  2. A valid driver's license
  3. An International Driving Permit (IDP)

Although Greece is a signatory of the 1968 Vienna Convention, allowing the use of national driving licenses from other signatory countries, in practice, many car rental agencies, particularly in major urban areas, insist on an IDP.

Having an IDP can also help avoid complications with insurance claims and interactions with the police while on the road.

For a smoother experience with car rentals and insurers in Greece, it is strongly advisable to obtain your IDP before your journey. You can acquire an IDP in just one day from the traffic police department by registering and paying the applicable state fee. This small step can greatly facilitate your car rental process and enhance your driving experience in Greece.

Extra knowledge: Different Types of car insurance for Rental

1. Collision Damage Waiver (CDW)

Collision Damage Waiver (CDW), also known as in some cases, is not a traditional insurance product but rather a rental car company's agreement to waive some or all of the costs if the rental car is damaged or stolen. This waiver typically covers damage to the rental vehicle from an accident and theft of the vehicle, but it may not cover damage due to neLoss Damage Waiver (LDW) gligence, vandalism, weather or road conditions, and a variety of other exceptions.

Here are the key aspects of CDW

  • Coverage Scope: CDW typically covers the rental car's bodywork; meaning if you return the car with dents or smashed panels, you won't be charged by the rental company. However, it often excludes interior damage, tires, undercarriage, roof, and windshield. It's important to check the specific terms of the CDW from the rental company to understand what's included and what's not.
  • Deductible: CDWs usually come with a deductible — an amount that the renter is responsible for before the waiver's coverage applies. The deductible can range from a few hundred to several thousand dollars. Some rental companies offer a zero-deductible CDW at a higher daily rate.
  • Exclusions: Certain types of damage or circumstances may not be covered by CDW, such as damage due to reckless driving, driving under the influence of alcohol or drugs, or unauthorized drivers. Renters should be fully aware of these exclusions to avoid surprises in the event of a claim.
  • Costs and Charges: Purchasing CDW can significantly increase the daily rental cost, sometimes by as much as double the base rate of the car rental. Despite the added cost, many renters opt for the CDW for peace of mind.
  • Alternative Coverage: Many credit cards offer collision damage coverage for rental cars if the rental is charged to the card. This can sometimes serve as a substitute for the rental company's CDW, but it's essential to understand the card's coverage limitations and requirements.
  • Not Insurance: It’s important to remember that CDW is a waiver between the renter and the rental company. It is not an insurance policy, although it often functions like one from the renter's perspective.

The decision to accept or decline a CDW is a significant one for renters. On one hand, accepting a CDW can reduce financial risk and potential hassle in the event of an accident. On the other, declining it can save money on rental costs, especially if alternate coverage is available through a personal auto insurance policy or credit card benefits. Renters should compare the costs, risks, and coverage details before making a choice.

2. Super Collision Damage Waiver (SCDW)

Super Collision Damage Waiver (SCDW) is an optional coverage that functions as an upgrade to the standard Collision Damage Waiver (CDW). While CDW limits the renter's financial liability by setting a maximum amount (the deductible) that the renter would be responsible for in the case of damage to the rental vehicle, SCDW goes a step further by reducing or even eliminating this deductible.

Here's a detailed look at what SCDW typically offers

  • Lower or No Deductible: SCDW reduces the renter's deductible to a minimal amount or sometimes even zero. This means that if the rental vehicle is damaged, the renter's out-of-pocket expense would be much less than with a standard CDW or potentially non-existent.
  • Broader Coverage: SCDW may cover parts of the vehicle that are often excluded by the standard CDW, such as tires, wheels, windows, mirrors, and undercarriage. Each rental company has its own terms, so it's important to check the specifics of what their SCDW covers.
  • Increased Cost: Opting for SCDW will typically increase the daily rate of the rental even more so than the standard CDW. This cost can sometimes be double the rate of the basic CDW, reflecting the additional risk the rental company assumes.
  • Peace of Mind: For renters who want the maximum protection and the least potential hassle in the event of damage, SCDW can provide greater peace of mind.
  • Cost-Benefit Analysis: Renters should conduct a cost-benefit analysis to determine whether SCDW makes sense for their situation. Factors to consider include the type of vehicle rented, the driving environment, the renter's comfort with risk, and whether the renter has alternate coverage through a personal auto insurance policy or credit card.
  • Alternative Options: As with CDW, some credit card companies offer enhanced rental car coverage, which may negate the need for SCDW if the rental is charged to the card. It's advisable for renters to check with their credit card provider to understand the extent of coverage.
  • Not Insurance: Just like CDW, it’s important to note that SCDW is not insurance. It is a waiver that specifically limits the renter's financial liability in the event of damage to the vehicle.

Renters considering SCDW should carefully read the rental agreement and the terms of the waiver to understand their coverage fully. They should also review their own auto insurance and any applicable credit card coverage to decide if SCDW is a necessary and cost-effective option for their car rental needs.

 

3. Theft Protection (TP)

Theft Protection  is a type of insurance coverage offered in many car rental insurance policies. This protection is specifically designed to financially safeguard renters in the event that the rented vehicle is stolen. When you opt for Theft Protection as part of your rental agreement, the insurance will typically cover the cost of replacing the vehicle up to a certain limit, which can significantly reduce your potential out-of-pocket expenses.

However, just like with other insurances, TP usually comes with a deductible. This means that the renter is responsible for paying the initial portion of any claim up to the deductible amount, and the insurance covers the remaining costs associated with the theft. The specific terms and amount of the deductible can vary based on the rental company's policy and the type of vehicle rented.

It's important to note that Theft Protection may not cover personal items left inside the stolen vehicle. Renters are often advised to check whether their personal auto insurance policy or travel insurance offers any additional coverage for personal possessions.

Furthermore, to ensure that TP coverage is in effect, renters must comply with the terms of the rental agreement. This usually includes requirements such as not leaving the vehicle unlocked or the keys in an unsecured location. If the theft occurred due to negligence on the part of the renter, the Theft Protection may be voided, leaving the renter financially responsible for the loss.

4. Full Damage Waiver (FDW) 

Full Damage Waiver (FDW) is a comprehensive form of coverage that some car rental companies offer. It is designed to provide renters with maximum protection against the costs of damage to the rental vehicle. This waiver typically encompasses most aspects of damage that could occur to the rental car, often including those areas not covered by standard Collision Damage Waiver (CDW) or Super Collision Damage Waiver (SCDW).

Here's a more in-depth explanation of FDW features

  • Extensive Damage Coverage: FDW usually covers the entire vehicle for damages without exclusions for parts like tires, mirrors, glass, and undercarriage, which are sometimes not covered under CDW or SCDW policies.
  • Minimal or Zero Deductible: FDW can reduce the renter's liability to zero or a very low amount in case of damage to the vehicle. This means that if an incident occurs, the renter's financial responsibility is significantly lessened or completely waived.
  • Cost Effectiveness: While FDW can be more expensive than other waiver options on a daily basis, it could potentially save the renter a significant amount of money in case of major damage to the vehicle.
  • Simplified Process: With FDW, the claims process is typically more straightforward. Since the renter's liability is minimal or nonexistent, there's less need to involve third-party insurers or to file a claim with a personal auto insurance provider.
  • Peace of Mind: Choosing FDW can provide the highest level of peace of mind for renters who prefer not to worry about potential damage charges when renting a vehicle.
  • Not Insurance: As with other waivers, FDW is not an insurance product but rather a contractual agreement between the renter and the rental company.
  • Rental Company Policies: It's important to note that terms and conditions can vary greatly between rental companies. Some may still have certain conditions or types of damage that are not covered by FDW, such as damage resulting from reckless behavior or violation of the rental agreement.

5. Third Party Liability (TPL) 

Third Party Liability insurance is an essential component of car rental insurance that covers the renter for damages or injuries that are caused to other people or their property while operating the rental vehicle. This type of coverage is critical because it protects the renter from the potentially high costs associated with being held liable for accidents that affect other parties.

Here's a more detailed look at what TPL generally includes

  • Bodily Injury Liability: This covers medical expenses, legal fees, and loss of income for other individuals injured in an accident where the renter is found to be at fault. It does not cover the driver of the rental car or passengers.
  • Property Damage Liability: If the renter causes damage to someone else's property with the rental vehicle, such as another car, a fence, or building, TPL will cover the repair or replacement costs.
  • Legal Defense Costs: Should the renter be sued due to a third-party accident, TPL often includes coverage for legal representation and any court-ordered judgments up to the policy's limits.
  • Settlement of Claims: TPL can help handle the settlement process with the third party, which can be a complex and time-consuming affair.

Renters should be aware that while rental companies provide TPL insurance, the basic coverage might not be sufficient in all cases, especially in severe accidents with significant damages or injuries.

What does 'Deductible' mean

  • The deductible represents the upper limit of the renter's financial obligation.
  • Regardless of the circumstances, as long as the rental agreement's conditions are fulfilled, the driver's payment will not exceed the set deductible amount.
  • It is important to note a deductible should not be confused with a deposit; they are distinct concepts.
  • The deductible fee varies for each vehicle and insurance policy.

 

Renting in MOTOR PLAN and the advantages of working with insurance

When you rent a vehicle in MOTOR PLAN, you have the opportunity to study all the insurance conditions that rental companies provide for their cars. You can book the car that you like with full insurance WITH ZERO EXCESS.

In addition, MOTOR PLAN has some other advantages:

  • very transparent and clear conditions written in the cards of all cars;
  • convenient booking and filtering system: you can choose a car with a free second driver- unlimited mileage at once
  • the car is delivered to your hotel or airport
  • support service, which will help you at any stage of the car renting.
  • In particular, our specialists will help you if you have to communicate with an insurance company.

 

Conclusion

A car in Greece is not a luxurious thing, but a necessity if you want to see the true beauty of this wonderful country. And we recommend that you take out full insurance when you rent a car so that nothing could spoil your trip. This way you can completely relax and enjoy your vacation!

 FAQ Before Renting a Car

What documents do I need to rent a car in Greece?

A Valid Driver’s License

  • If you’re a resident of the EU, your current driver’s license is valid in Greece.
  • For non-EU residents, an International Driving Permit (IDP), along with your national driver’s license, is often required.

International Passport

  • A valid passport is usually required as a form of identification.

Credit Card

  • A credit card in the driver’s name is typically necessary for a security deposit.

Is UK driving Licence valid in Greece?

Yes, a UK driving licence is valid in Greece. After Brexit, UK licence holders visiting Greece can still use their driving licence to drive a vehicle. However, it is recommended to check the latest guidance before travelling, as regulations can change, and some car rental companies may require an International Driving Permit (IDP) in addition to your UK licence, especially for longer visits or residency. It's always a good idea to carry an IDP as a complementary document since it provides a translation of your driving qualifications in multiple languages and can assist local authorities in the event of an incident or vehicle control.

Can 2 people be insured on a rental car in Greece?

Yes, in Greece, as with most countries, it is possible to have two people insured on a rental car. When you rent a car, the primary driver will be the one whose name is on the rental agreement and who is covered by the rental car's insurance policy. If you wish to have an additional driver, they must be added to the agreement.

What to do in a car accident in Greece?

If you find yourself in a car accident in Greece, your first step should be to move to a safe location if you're in danger or obstructing traffic. Once you're in a secure spot, assess whether you or any passengers have sustained injuries. In the event of injury, immediately dial 100 to reach the police and 166 for the Medical Emergency Service to ensure that everyone receives the necessary medical attention. After ensuring everyone's safety, promptly call your rental company to inform them of the incident, followed by contacting your insurance company to initiate the claim process. Next, exchange contact and insurance information with the other driver(s) involved, ensuring you have all the details necessary for the insurance claim. It's crucial at this point to document the accident thoroughly: take pictures of the scene, the vehicles, and any damage incurred. As you manage these tasks, remember not to admit fault; the apportionment of liability should be left to the authorities and insurance companies. Finally, be sure to file a police report, as this official documentation is often a requisite for your insurance claim. Following these steps with clear, logical progression will help create a smoother post-accident experience.

What insurance do I need for a rental car in Greece?

You must decide whether to opt for standard or extended insurance.

Should you take out extra insurance when renting a car in Greece?

Ultimately, it is up to the individual renter to assess their needs and comfort levels. Extra insurance can increase the cost of your car rental significantly but can also offer peace of mind and protection against unforeseen circumstances. It’s always a good idea to read the rental and insurance agreements carefully to understand what is included and what each type of additional insurance covers before making your decision.

Explore Greece with MOTOR PLAN !

We wish you good luck on the roads!

 

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