Car Insurance for Car Rentals in Cuba – How it Works

Car insurance is mandatory in Cuba. Each time you go to rent a car in Cuba, you will be obliged to purchase an insurance to go with it. There’s a whole different world in Cuba and virtually no car will be rented without an insurance payment. These are Cuban internal government regulations; there is no way around it.

Can I Use My Bank’s or Credit Card’s Car Insurance in Cuba?

Some banks and credit cards come with or offer inexpensive car insurance options that are available worldwide but it will be pretty much worthless in Cuba. I myself have a TD Platinum Travel Visa card which costs me $99 a year and that cost includes year round comprehensive car insurance that’s valid worldwide. So basically, for $99 a year that I pay for my Visa, I get worldwide car rental insurance. That sounds like a pretty handy bit of business, except that once again we are talking about a car rental in Cuba, where everything is somewhat different.

I phoned my credit card issuer to clarify how exactly my card’s car insurance works. It was explained to me and… sadly – there is a catch: In order to keep the insurance provided by my Visa valid, the rental must be paid in full using that credit card, I must be the one who signs the rental form and I must be the one who picks the car up. All of these conditions are easy to meet. Many car rental agencies throughout Cuba accept credit cards, but cars can now be conveniently rented on line before you arrive in Cuba, and all of those online car rentals accept credit card, so the requirement to pay with that credit card is an easy one. However there is one more condition – you must decline other collision and loss insurance. This is where it gets complicated – Cuban laws state that if you’re renting a car in Cuba, you must oblige to buy Cuban car insurance too. In my case as described above – the requirement to purchase Cuban car insurance basically voids insurance provided by my credit card company.

Most insurance companies from your homeland will have similar requirements – aka you will need to refuse third party collision and loss damage in order for theirs to be fully effective, but double check first to make sure. Either way – when you go to rent a car in Cuba, you will have to buy Cuban car insurance to go with it. I haven’t found the way around it and no rental clerk was willing to negotiate. Just be aware that this additional cost will be applied on top of rental fees.

What Does Cuban Car Insurance Cover?

If you are not liable, aka if you didn’t cause the accident, the insurance will cover full cost. However, if you are liable for car damage, you will be required to pay the first 350 – 800 CUC, depending on the car. The more expensive a car, the more a deductible will be. I have not heard of any insurance that would not cover any of the damages if you’re the one who caused the damage. So for the most part, insurance will cover the damage, but there will be deductible you have to pay if you are found responsible for damages.

Cuban insurance doesn’t cover theft or vandalism. This is where insurance policies get really frustrating. Remember that car insurance that I automatically get for being a bearer of TD Platinum Travel Visa? Yeah… well, this insurance covers absolutely everything, with no deductible whatsoever. It covers accidental damage in full regardless of whether it was me who cause the accident or not. It covers vandalism, theft and whatever other car related insurance claim may arise. This is the type of car insurance I could get for free. But if you’re renting a car in Cuba, you’re gonna end up paying extra to get their insurance, and that one’s not even as comprehensive as the one I otherwise get for free. Ah well, Cuba has got some other perks to make up for it.

As a general rule – you always want to be careful. Regardless of whether it’s Cuba you’re traveling to or elsewhere in the world. There are shady characters everywhere. Cuba is a very safe country, much safer than most other. The chances of having your car stolen or vandalized are low, compared to elsewhere in the world. It is unlikely you could have this type of bad luck, but it always pays to use common sense. For example – if you can, park your car on well lit streets. Or better yet – on guarded parking lots. They collect fees for that, but your car will be much safer. Do not give your car keys to the nice guy you have just met. Do not let anyone else drive the rental. Etc – I mean, just use common sense and you should be perfectly fine.

How Much Does Car Rental Insurance in Cuba Cost?

The cost of car insurance generally vary based on what kind of car you’re renting. Economy cars cost as little as 10 CUC a day for car insurance, luxury cars can get up to 30 CUC per day or more.