Does Swiss Car Insurance Cover Rental Cars?

Do I need extra rental car insurance or am I already insured for driving rental cars by my Swiss car insurance?

Hi there,

The majority of Swiss liability car insurance policies only cover liability for incidents resulting from the vehicle(s) listed in the policy.

However, some policies include limited coverage for liability resulting from an accident caused by the policyholder using a rented vehicle. Policies from Baloise, Smile Direct, TCS (underwritten by Baloise) and Sympany either include this coverage or let you add it as an optional rider.

Review your insurance policy or contact your insurance provider directly to find out whether you are insured.

Coverage from Swiss personal liability insurance policies

Swiss personal liability insurance policies typically include coverage for liability resulting from the use of vehicles owned by third parties - but most specifically exclude rented vehicles.

Allianz personal liability insurance policies generally cover liability arising from the use of cars rented in EU and EFTA member countries for up to 1 month. Elvia offers the same coverage as an optional rider for its personal liability insurance.

If you have personal liability insurance from one of these insurers, review the terms and conditions attached to your policy to determine whether you are covered. Note that this coverage is secondary to the rental car's third-party liability insurance (all EU and EFTA member countries require car rental companies to take out liability car insurance for their vehicles).

Damages to rental cars

With very few exceptions, neither Swiss car insurance policies nor Swiss personal liability policies cover damage to rented vehicles by you.

Rented vehicles are generally excluded from the "damage to borrowed cars" rider for personal liability insurance. Exceptions to this rule include Helvetia (up to CHF 2500 for damage to rental vehicles) and Vaudoise (up to CHF 10,000 with its Comfort policy).

Car insurance providers generally offer a collision and loss damage waiver CDW) by which they waive their right to hold you liable for damage to or loss of rental vehicles and/or payment of the insurance deductible. In some cases, they may only offer partial collision and loss damage waiver which reduces but does not fully waive your liability.

Some Swiss credit cards provide a CDW as a complimentary benefit - typically when you use the card to pay for the rental. You can find this benefit - where applicable - listed along with waiver details on the info pages in the moneyland.ch credit card comparison.

Some Swiss travel insurance providers offer rental car insurance which includes either a CDW or both liability car insurance and a CDW. Roadside assistance may also be included. If you will be renting a vehicle outside of Switzerland, taking out this insurance ahead of your trip can be preferable to getting insurance from the rental car company because: the absence of commissions often results in lower premiums; if you have to make a claim, you can deal directly with a Swiss insurance provider rather than remotely with a foreign insurance provider.

Best regards from Moneyguru

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