Does Third Party Insurance Cover Car Rentals? 

Malta is famous for its beautiful, scenic landscape. With cultural highlights and historic locations, Malta has a lot to offer for both visitors and residents alike. One easy way to view it all and take in the breathtaking vistas is by car. 

You won’t be alone if you decide to rent a car to help you get around Malta. According to recent statistics, the annual growth rate of the car rental market in Malta is expected to be 3.4% by 2029. This means that more people than ever are hiring cars to make the most of their time in the region, whether for a holiday or a more extended stay. 

Car rental is also easy and convenient. With 69 fuel stations dotted over Malta and Gozo, you’re never too far away from a fuel stop. Plus, there are over 11,000 rental cars registered in Malta, ensuring that there will be a plentiful supply should you need one. 

If you decide to rent a car in Malta, are you aware of the type of car insurance you’ll need? In this article, we explore the essentials around third-party car insurance and answer the question: does third-party insurance cover car rentals? 

Contents 

● What is third-party car insurance? 

● Does third-party insurance cover car rentals? 

● How can you arrange car insurance for a rental car? 

● Find your third-party insurance with GasanMamo. 

What is third-party car insurance? 

When you buy a car or want to lease or rent a vehicle, it helps to know about the different types of insurance available. Third-party insurance is a legal requirement for EU countries and is the basic level of car insurance that you need to drive on Maltese roads. 

The term ‘third-party’ refers to anyone who may be involved in a car insurance claim that isn’t you. A passenger in your car, drivers of other cars, or pedestrians who are part of an accident or damage to property are all defined as ‘third-party’. 

Typically, third-party insurance covers any personal injury or property damage that has been caused while you drive your car. This means that your insurance will likely cover relevant costs associated with this injury or damage. 

An important point to note is that any damage to your car won’t be covered by your third-party car insurance, so you would have to pay for this yourself. Additionally, if you suffer an injury, you would have to pay for any medical expenses that you incur.

Does third-party insurance cover car rentals? 

When you rent a car in Malta, it will come with insurance cover. However, each rental company will have its own individual requirements. While many will have comprehensive insurance cover, (damage to the car caused in an accident will be covered irrespective of fault), some car rental companies only have the minimum cover required by law: third-party liability. So it makes sense to check and be clear about what insurance cover you have before you rent the car. 

If the car does not have comprehensive cover and your rental car is damaged in an accident where you were at fault, the car rental company is likely to charge you for the cost of these damages. 

Even if the car does have comprehensive cover, you may still become liable to pay for dents and scratches on the car unless you buy a Collision Damage Waiver (CDW). This is usually an optional add on, and it’s always recommended that you purchase it. In some cases, the CDW will exclude damage to certain aspects, such as tyres, windows, or the undercarriage. 

Another key point is that when you rent a car, irrespective of the cover or if you take on the CDW, you will be responsible for the first part of the claim cost, known as the excess. On average, this could be around €350 but can potentially be higher. Many car rental companies will offer you the option to pay extra to have this excess reduced or removed.  

When you sign the forms for your car rental in Malta, you should make sure that it is clear what costs you are responsible for should an accident occur. The car rental company may offer you additional levels of car insurance and it’s up to you which insurance plan you select. 

Can I buy insurance cover for the excess? 

There are likely to be two different ways to secure insurance on a rental car in Malta:

1. From the rental company itself 

When you contact your chosen car rental company, there should be details about this on their website. You can also ask the company directly over the phone or by email for more detailed information about the insurance cover on their cars and the option to remove or reduce the excess. 

2. Annual cover 

You can find an online insurance provider that will issue an annual policy to cover the cost of the excess on any car rental you take out in the period of insurance. Some may even offer short term cover. The cost of this insurance may be cheaper than if you have to buy it from the rental company, but it’s reasonable if you rent a car more than twice a year.

You can get in touch for a chat with our friendly team of experts at GasanMamo if you have car rental insurance questions. You can also discover the car insurance policy that suits your vehicle and lifestyle the best! 

GasanMamo Insurance is authorised under the Insurance Business Act and regulated by the MFSA.