What Happens If You Crash Your Rental Car in Madeira? Excess, Insurance and Claims
If you crash your rental car in Madeira with basic CDW insurance, you pay the excess (€500-€1,500) and insurance covers the rest. With zero-excess full cover, you pay nothing. The process is always the same: call the company, fill in the accident report, take photos and hand back the vehicle. Don't sign anything at the scene without reading it first. Not having to pay anything in the event of an accident is the main reason to take out zero-excess full cover in Madeira. Book with full coverage at Discover Cars.
What to do immediately if you have an accident in Madeira
Step 1 — Secure the scene
If the accident is blocking the road, turn on your hazard lights and place the warning triangle if the car has one.
Step 2 — Call the company's assistance number
The number is on the rental contract and the vehicle's paperwork. Save it on your phone when you collect the car.
Step 3 — Call emergency services if anyone's hurt
Emergency number in Portugal: 112. Mandatory if there are injuries.
Step 4 — Don't admit fault
Don't sign statements or admit responsibility at the scene. Wait for the company and the insurers to sort out liability.
Step 5 — Fill in the European accident report
If another vehicle is involved, fill in the European accident report (Friendly Statement). Both drivers sign. If the other driver refuses to sign, note their plate and call the police.
Step 6 — Document everything
Take photos and video of damage to both vehicles, the plates, the position of the cars and the accident scene. Get the names and contact details of any witnesses.
How much you pay depending on your insurance
| Insurance | Minor accident (€800 damage) | Serious accident (€3,000 damage) |
|---|---|---|
| Basic CDW (€1,000 excess) | €800 (you pay it all) | €1,000 (you pay the excess) |
| Zero-excess full cover | €0 | €0 |
| No extra insurance | €800 | €3,000 + possible extras |
With basic CDW, if the damage is less than the excess, you pay 100% of the repair. If it's more, you pay up to the excess limit.
What insurance covers and what it doesn't
Basic CDW covers:
- ✓Collision damage with another vehicle
- ✓Hitting fixed objects (walls, railings)
- ✓Damage from the vehicle rolling over
Basic CDW does NOT cover:
- ✓Punctured or blown tyres
- ✓Broken windows (windscreen, side windows)
- ✓Undercarriage damage
- ✓Damage caused by driving under alcohol or drugs
- ✓Damage on unpaved roads (in many contracts)
- ✓Damage from gross driver negligence
Full cover including tyres/windows/undercarriage covers:
All of the above plus tyres, windows and undercarriage damage. This is the recommended cover for Madeira.
What happens with a parking knock?
Parking knocks are the most common incident in Madeira: tight spaces, other drivers who scrape and drive off. If there's no identified party responsible:
- ✓With zero-excess full cover: the company covers the damage, you pay nothing
- ✓With basic CDW: you pay the full excess even though you weren't the one who caused it
- ✓Tip: when collecting the car, photograph all existing scratches so you're not held responsible for pre-existing damage
Frequently asked questions about accidents with rental cars in Madeira
Do I have to notify the company even if the damage is small?
Yes, always. Hiding damage and not reporting it can void your insurance. Any new damage, however small, must be reported to the company.
Can I keep driving if the car has minor damage?
Depends on the damage. If it affects safety (damaged wheel, broken lights, broken glass), you shouldn't continue. Call the company to assess whether the vehicle is safe to drive.
What happens if the other driver has no insurance?
In Portugal, third-party liability insurance is mandatory. If the other driver has none, the Fundo de Garantia Automóvel (FGA) covers third-party damage. The rental company manages the process.
Can the company charge me on top of my insurance?
With zero-excess full cover, no. With basic CDW, they can charge you up to the excess limit. Check the contract for additional administrative claim-handling fees (some companies charge €30-50 processing fee even when the damage is covered).
What do I do if I crash alone (no other vehicle involved)?
Call the assistance company, document the accident with photos and wait for instructions. Insurance covers the damage the same way, according to the cover you took out.