Car Rental Insurance in Madeira Explained
CDW, SCDW, Excess, Deposits... We cut through the jargon to help you understand exactly what coverage you need for the island's roads.
Wondering how much will be blocked on your card? Use ourDeposit Calculator below.
The Basics: CDW vs. SCDW
In Portugal, basic insurance is always included, but it comes with a "excess" (or deductible). Understanding the difference between the two main types of coverage is crucial.
Basic CDW (Collision Damage Waiver)
Mandatory but high risk. You are liable for the first €800+ of any damage.
Typically Covers
- Major collision damage
- Third-party liability
Commonly Excludes
- Tyres & Wheels
- Windows/Glass
- Undercarriage
- Mirrors
- Theft
SCDW (Super CDW / Full Insurance)
Recommended for peace of mind on mountain roads.
Typically Covers
- Everything in CDW
- Zero or low excess
- Towing (usually)
Commonly Excludes
- Interior Damage
- Key Loss
- Off-road driving
How Deposits & Holds Work
When you pick up your car, the rental company will "block" a specific amount on your credit card. This is not a charge, but it reduces your available credit limit until you return the car safely.
Important Warning
Ensure your credit card limit is high enough to cover both the rental fee AND the deposit. If the deposit fails, companies will require you to buy their most expensive "Zero Excess" insurance at the counter, which can cost €30-€50 per day.
Deposit & Excess Calculator
Use our interactive tool to estimate your required deposit based on the car class and company type.
The "Local Advantage" (Debit Cards & No Deposits)
One of the biggest advantages of booking with local Madeira operators is their flexibility. Unlike international chains (Hertz, Avis, Sixt), many locals offer:
- Debit Card Acceptance: No credit card? No problem.
- No Hidden Hold: If you take full insurance, many won't block any deposit at all.
- Transparent Pricing: The price you see online usually includes the SCDW already.
Insurance & Deposit FAQs
Do I need full insurance in Madeira?
While not legally mandatory, we highly recommend SCDW (Zero Excess) insurance. Madeira's roads are narrow with many stones and tight parking; a simple scratch or chipped windscreen can cost more than the daily insurance premium.
Can I rent a car without a credit card in Madeira?
Yes, some local companies like Stones Rent-a-Car and Carwave Madeira allow rentals with a debit card if you take their full insurance (SCDW) package. International brands usually require a credit card for the deposit.
What is the typical deposit amount?
With basic insurance, expect a hold of €800 to €1,500 on your credit card. With full insurance (SCDW), this is often reduced to €0 to €200, or just a small fuel deposit.