Quick answer: Yes, you can usually rely on credit card or third-party insurance when renting a car in Malta, but it’s not always straightforward. Coverage often comes with conditions, exclusions, and the need to handle paperwork if something goes wrong. For some visitors, taking the rental desk’s full cover is the smoother choice.
What Malta Car Hire Insurance Really Includes
Every rental car in Malta is legally insured, but the default cover can be misleading. Most companies include Collision Damage Waiver (CDW), which limits your liability if the car is damaged. The catch? You’re still responsible for an excess — often several hundred to a few thousand euros depending on the car and the company.
If you skip the rental desk’s full protection, the company will place a sizable hold on your credit card as security. That hold is released a few days after you return the car, but some banks take longer to show the funds back in your account.
Adding the rental’s full cover reduces or removes the excess, and the card hold is smaller. For many visitors, that peace of mind is worth it. Just remember, insurance only covers the renter and any additional drivers named in the contract. If someone else takes the wheel, the cover becomes invalid.
Using Your Credit Card Insurance in Malta
If you have a premium travel card, you can often skip the rental desk’s CDW and rely on your card’s protection instead. Cards like the Amex Platinum cover collision and theft if you pay with the card and decline CDW. The trick is knowing the fine print.
Before booking, double-check that your benefit applies in Malta, what car types are included, and whether the cover is primary or secondary. Save the benefit guide and claims number on your phone — and note any deadlines for reporting damage.
At the counter, always pay with the same card that carries the benefit. If your card requires you to decline CDW to trigger coverage, make sure you do so. Add all drivers to the contract, since card insurance generally only applies to named drivers. And don’t skip the photos — take shots of every panel, the wheels, the roof, the interior, and even the fuel gauge.
What’s Not Covered
Card insurance is rarely all-inclusive. You’ll usually find these exclusions:
- Windscreens and tires
- Undercarriage and interiors
- Lost keys, towing after misuse, and admin fees
- Traffic fines and Valletta CVA access charges
Third-Party Excess Policies
Another option is to buy an excess reimbursement policy. These don’t stop the rental company from charging you if the car is damaged — instead, you pay up front and then claim reimbursement.
They don’t remove the deposit hold on your card either, so you still need available credit. And the inspection process at return doesn’t change, so documenting the car is just as important.
If you choose this route, make sure Malta and Gozo are included in the policy, and check whether glass, wheels, and towing are covered. Some local banks, such as HSBC Malta in the past, have bundled excess cover into certain accounts — but always confirm current eligibility and limits.
When Full Cover at the Desk Makes Sense
Full cover at the counter costs more, but for many travelers it’s worth the price. If you’re landing late at night, it speeds things up and avoids long debates at the counter. Nervous drivers or visitors arriving in peak summer also benefit, since crowded streets and tight parking make scratches more likely.
With full cover, you usually get a zero or very small excess, fewer arguments at return, and broader roadside help that includes glass, tires, and keys. Read the policy carefully, but generally it buys you simplicity and peace of mind.
Local Insurance Gotchas in Malta
A few quirks in Malta can affect your decision. Valletta has a Controlled Vehicular Access system with cameras and fees during core hours — and no insurance will cover those charges.
Parking is notoriously tight in Valletta, Mdina, and village centers, while evenings in St Julian’s and Sliema can be hectic. If squeezing into bays makes you nervous, it’s wise to have cover for glass and wheels.
The Gozo ferry is usually included in contracts, and breakdown help typically extends there too, but always confirm in writing.
Handling Claims Without Drama
The easiest way to avoid disputes is to document everything. Take timestamped photos or videos at pickup and return, make sure any scratches are marked on the form, and keep both the check-in and check-out reports.
If damage happens, stay calm and gather evidence: close-ups, wide shots, and a police incident number if required. Notify the rental company immediately and keep all invoices and emails.
For card or third-party claims, you’ll need your rental agreement, final invoice, damage report, proof that you declined CDW (if applicable), and proof of payment with your card. File promptly — many benefits have tight deadlines.
Frequently Asked Questions
1. Can I use my credit card insurance instead of buying the rental company’s coverage in Malta?
Yes, if your card includes collision and theft cover and you decline the rental’s CDW. Just be sure Malta is covered, pay with that card, and follow the issuer’s rules.
2. Is credit card insurance primary or secondary in Malta?
It depends on your card. Some premium cards offer primary coverage, but many only reimburse after your personal insurance pays (secondary). Always check your benefit guide before traveling.
3. What car damages are usually excluded from card coverage?
Most card policies exclude windscreens, tires, undercarriage, and interiors. They also won’t cover lost keys, towing after misuse, admin fees, or traffic fines.
4. Does card insurance cover driving in Gozo?
Generally yes — most rental contracts and card benefits extend to Gozo if you take the ferry. Still, confirm this in writing on your rental agreement.
5. Will credit card insurance cover additional drivers?
Only if each additional driver is named on the rental contract. If someone drives who isn’t listed, all coverage is void.
6. How do third-party excess policies work in Malta?
They reimburse you after the rental company charges you the excess. You pay the rental company first, then file a claim with the insurer. It doesn’t remove the deposit hold or change the return inspection.
7. When is it smarter to just buy full cover at the desk?
If you’re landing late at night, short on time, or not confident about handling claims and paperwork, the rental’s full cover is simpler. It usually reduces the deposit hold and avoids disputes at return.
8. Do I still need to take photos if I have full cover or card coverage?
Yes. Photos protect you from false damage claims and give you evidence if you need to file with your card or insurer. A quick walk-around with your phone saves headaches later.
We’re locals and happy to help you find the right car. Book with us today and start exploring Malta the easy way.
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