Car Rental Insurance and Coverage: What Is Included and What Is Not

Every Klass Wagen rental comes with two core protections included at no extra cost: third-party liability insurance and a Collision Damage Waiver (CDW) that caps your financial exposure in case of damage or theft to the security deposit amount for your vehicle class.

For renters who want full peace of mind, the optional Klass Total Cover (KTC) upgrade reduces that exposure to zero and adds roadside assistance, a replacement vehicle within four hours, and more.

Standard Collision Damage Waiver (CDW) vs Klass Total Cover (KTC)

What Is Included in Every Rental

Every rental – regardless of vehicle class or country – includes the following as part of the base rental price:

Third-party liability insurance (TP/RCA/Civil Liability): Covers damage or injury that your driving causes to other people, vehicles, or property. This is compulsory legal coverage in all four countries where Klass Wagen operates (Portugal, Romania, Hungary, and Austria).

Collision Damage Waiver (CDW): Limits how much you can be charged if the vehicle is damaged or stolen while in your care. Instead of being liable for the full repair or replacement cost, your financial exposure is capped at the security deposit (guarantee) for your vehicle class.

Seasonal tyres: The correct tyres for the season are always fitted – winter tyres from 1 November to 31 March, summer tyres from 1 April to 31 October.

24/7 technical support: Klass Wagen's customer care line is available non-stop for breakdowns and incidents.

Collision Damage Waiver (CDW)

CDW does not mean your rental is fully insured. It means your out-of-pocket exposure is limited to the deposit amount shown at booking.

CDW is included in every rental. Here's precisely what it means:

• Your maximum financial liability in case of an accident or damage is the amount of the security deposit (guarantee) held on your credit card at pick-up.
• The guarantee ranges from €1,700 to €4,000 depending on your vehicle's category. The exact amount is shown in your booking confirmation and at the rental counter before you sign.
• The guarantee is a pre-authorisation – a temporary hold on your card, not a charge. It is released within 30 days after returning the car undamaged.
• CDW applies whether the damage is caused by your fault or by an unknown third party.

CDW does not cover damage caused by prohibited behaviour (see "What's Not Covered" below). In those cases, you are liable for the full repair cost or the vehicle's market value.

Theft Protection

Theft protection is included as part of CDW. If the vehicle is stolen:

• Your liability is capped at the security deposit/guarantee amount for your vehicle class (€1,700–€4,000).
• Protection is only valid if you provide: a police report, the vehicle keys, the vehicle documents, and a signed affidavit describing the circumstances.
• If any of these documents are missing, all theft protection is void and you become fully liable for the market value of the vehicle.
• Damage from theft attempts or vandalism is charged from the deposit, even with a police report submitted.

Third-Party Liability

Third-party liability (TP/RCA) is included in every rental and is compulsory in all operating countries. It covers:

• Bodily injury or death caused to third parties
• Damage to third-party property (vehicles, infrastructure)

It does not cover: damage to the rental vehicle itself, your own personal injury, or your passengers' injury. Personal accident and luggage coverage are not included in any Klass Wagen rental option.

Excess / Deductible - How Much You Pay

Your excess is equal to the security deposit (guarantee) blocked on your credit card. It is not an upfront charge – it is held and only debited if damage or loss occurs.

The residual admin deposit with Klass Total Cover covers non-damage obligations only: returning the car dirty, less fuel, or missing documents. It is not a damage excess.

Optional Upgrade: Klass Total Cover

Klass Total Cover (KTC) is an optional paid service available at booking or pick-up, priced between €15 and €100 per day depending on your vehicle class and rental duration.

Zero damage excess: Your financial liability for accidental damage or theft (by your fault or an unknown party) is reduced to €0.

Replacement vehicle: If your car is involved in an accident or breaks down, a replacement vehicle is provided anywhere within your rental country within 4 hours of notification. If you added the cross-border service, replacement is available within 24 hours outside the country.

24/7 roadside assistance: Non-stop assistance throughout your rental country (and abroad, if cross-border service is active). Without KTC, roadside assistance costs are charged to you if the breakdown was your fault.

Late pick-up protection: If your flight is delayed, your booking is protected for up to 12 hours at no extra cost (subject to vehicle availability).

Reservation amendment protection: You can amend your booking (vehicle category, dates, extra services) up until pick-up time without penalty (subject to availability and applicable extra costs).

Express Pick-Up: Offered free of charge – complete your contract paperwork online up to 48 hours before arrival, skip the counter, and just sign and collect your keys.

Country-specific extras:

• Romania: Express Drop-Off option – return the car without waiting for an on-site inspection.
• Austria: Highway vignette included free (€16.80 for 1–10 days; €27.19 for 11+ days).
• Romania & Austria: Up to €70 covered for food, accommodation, or transport home if an insured event occurs during the rental.

KTC Benefits By Country

*Cross-border replacement is only available if a cross-border service was also purchased.

What Is Not Covered

The following situations void all coverage – both the standard CDW and Klass Total Cover – making you fully liable for repair costs up to the vehicle's market value:

Driver behaviour:

• Driving under the influence of alcohol, drugs, or any prohibited substance
• Failing to stop immediately after an accident (causing further damage)
• Failing to report the incident to the police and obtain the required documents
• Failing to notify Klass Wagen within 12 hours of any accident, theft, or incident

Vehicle use:

• Off-road driving – unpaved roads, forest tracks, closed roads, water crossings, construction sites, or industrial areas
• Racing, rallying, competitions, or timed auto tests
• Towing or pushing another vehicle, trailer, or object
• Overloading the vehicle or carrying more passengers than its registered capacity
• Any illegal use (smuggling, transporting goods for hire, etc.)
• Engine, gearbox, tyre, or interior damage caused by improper use or ignoring manufacturer warnings

Administrative:

• Theft where keys and vehicle documents are not surrendered to Klass Wagen along with the police report
• Driving the car by a person not listed on the rental contract
• Unauthorized cross-border travel (crossing into a country without prior written approval)

Always-Charged Items (Not Covered by Any Insurance)

These penalties apply even with Klass Total Cover:

Personal insurance (for your own injuries), luggage, and personal effects are not covered by any Klass Wagen rental option (T&C §5.2).

How to Choose Your Insurance

• Choose standard CDW if you are comfortable with a deposit hold of €1,700–€4,000 on your card and have travel insurance that covers car rental excess, or if you are renting a compact car with a lower guarantee amount.

• Choose Klass Total Cover if you want your damage excess reduced to zero, want a replacement vehicle if anything goes wrong, or are travelling in an unfamiliar country and want 24/7 roadside peace of mind. First-time renters in Europe, travelers without an excess reimbursement policy, and anyone traveling in an unfamiliar country typically choose Klass Total Cover.

Before You Book

• Check your vehicle class guarantee amount on the booking confirmation.
  

• Decide whether KTC is worth the daily cost, given your excess comfort level.
  

• Confirm you have valid travel insurance if relying on CDW only.
  

• Check cross-border requirements before adding KTC if you plan to leave the country.
  

• Ensure all drivers are listed on the rental contract before pick-up.
  

Klass Wagen Insurance Frequently Asked Questions

Q: Does Klass Wagen include insurance in the rental price?

Yes. Every Klass Wagen rental includes third-party liability insurance (compulsory in all four operating countries) and a Collision Damage Waiver (CDW) that caps your financial exposure at the security deposit for your vehicle class. Theft protection is included as part of CDW. The optional Klass Total Cover upgrade reduces damage and theft excess to €0.

Q: What does CDW cover with Klass Wagen?

CDW limits your maximum financial liability if the rental car is damaged or stolen while in your care. Instead of being liable for the full repair or replacement cost, your exposure is capped at the security deposit (guarantee) for your vehicle class — €200 to €4,000 depending on the car. CDW applies whether the damage is caused by your fault or by an unknown third party.

It does not cover damage caused by prohibited behaviour such as driving under the influence, off-road driving, or unauthorized cross-border travel — see "What is not covered" for the full list.

Q: What is the security deposit / guarantee amount?

The deposit is a refundable pre-authorisation hold on the main driver's credit card at pick-up — not a charge. The amount ranges from €200 to €4,000 depending on vehicle category. The exact amount is shown on your booking confirmation and at the counter before you sign.

The hold is released within 30 days of the vehicle being returned undamaged. With the optional Klass Total Cover upgrade, the hold is reduced to a small residual administrative deposit (€50 in Romania, €100 in Hungary and Austria, €150 in Portugal without cross-border, €0 in Madeira).

Q: What is Klass Total Cover and how much does it cost?

Klass Total Cover is Klass Wagen's optional zero-excess insurance upgrade. It reduces your damage and theft liability to €0, replaces the standard deposit with a small residual hold (€50–€150 depending on country, €0 in Madeira), adds 24/7 roadside assistance, a replacement vehicle within four hours inside your rental country, late-pick-up protection up to 12 hours, free reservation amendments, and Express Pick-Up. Pricing is €15 to €100 per day depending on vehicle class and rental duration, available at booking or at pick-up.

Q: What happens if my rental car is stolen?

Theft protection is included as part of standard CDW; your liability is capped at the security deposit for your vehicle class (€1,700–€4,000). Protection is only valid if you provide four items: a police report, the vehicle keys, the vehicle documents, and a signed affidavit. Missing any one of the four voids all theft protection and makes you fully liable for the market value of the vehicle. Klass Total Cover reduces the deposit-based excess to €0; the same four-document requirement still applies.

Q: What is not covered by Klass Wagen insurance?

Neither CDW nor Klass Total Cover covers damage from prohibited behaviour, which voids all coverage. This includes: driving under the influence, off-road driving (unpaved roads, construction sites, water crossings), racing or competition use, towing, overloading, unauthorized drivers, unauthorized cross-border travel, and theft where the police report, keys, vehicle documents, and signed affidavit are not all provided. A separate fee schedule (lost keys €440, smoking €130, misfuelling €505+, etc.) applies regardless of which coverage option you choose. See "What's Not Covered" and "Always-Charged Items" for the full list.

Q: What fees are always charged regardless of insurance?

A separate fee schedule applies to specific items even when Klass Total Cover is in place, because these fees relate to administrative or non-damage obligations rather than collision risk. Common items: lost keys €440, broken vehicle documents €220, broken licence plates €280, lost child seat €155, refusing to fill out the accident affidavit €155, damage-at-return admin fee €100, back-office damage processing €150, misfuelling €505 plus technical intervention, unauthorized location return €1,500 plus recovery costs, smoking cleaning €130 (full liability if fire or burns), and unauthorised water transport €300. See the full Always-Charged Items table for all amounts.

Q: Do I need my own travel insurance if I rent with Klass Wagen?

Not strictly — but it depends on which coverage option you choose. If you choose standard CDW, your maximum exposure is the deposit amount for your vehicle class (€1,700–€4,000); a travel insurance policy that covers car rental excess can reimburse you if that deposit is debited. If you choose Klass Total Cover, your damage and theft liability is reduced to €0 and the deposit is replaced by a small residual hold, so excess-reimbursement insurance is not required. Personal accident, luggage, and personal effects are not covered by any Klass Wagen rental option (T&C §5.2), so personal travel insurance is recommended regardless of which option you choose.

Q: Does Klass Wagen accept third-party insurance?

All rentals include the legally required basic insurance coverage. Customers may use eligible third-party insurance coverage (such as credit card rental coverage or independent rental insurance) instead of purchasing additional protection directly with Klass Wagen. However:

• The Klass Wagen’s terms and conditions still apply.
• A valid credit card in the driver’s name is usually required.
• A security deposit may be pre-authorized on the card.
• In the event of damage or theft, the customer may be charged first and later request reimbursement from their third-party insurer.
• Coverage acceptance depends on the insurance provider’s terms, vehicle category, and rental country.

Customers are advised to verify their third-party insurance coverage before travel, including exclusions, deductibles, and geographic limitations.

Q: Is the Klass Wagen deposit a charge or a hold?

The deposit is a refundable pre-authorisation hold on the main driver's credit card — not a charge. It is released within 30 days of the vehicle being returned undamaged.

Q: Why is Klass Total Cover priced as a daily rate?

Because insurance risk scales with rental duration. The €15–€100 per day rate covers the residual cost of zero-excess protection over the length of your rental; longer rentals are priced lower per day.