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.

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Renting a Car in Cuba Allows You to Explore Cuba at Your Own Pace, Photo: ANOXLOU, Flickr

Why Car Rental in Cuba

Why you should rent a car when traveling to Cuba instead of using public transport buses (Viazul) or taxi? It’s easy – the freedom to go wherever you want and do what you want and at the speed you choose can not be beat. Traveling by Viazul (public bus system in Cuba) is cheaper, but Viazul buses only run twice a day. Another disadvantage is that buses don’t stop when you see something of interest. They have predesigned routes they follow so you might miss some of the most spectacular spots that way. Being your own king by driving a car you’ve rented in Cuba can take you anywhere, including areas away from beaten tourist paths.

The biggest disadvantage to car renting in Cuba is the price. All Cuban car rental agencies are owned by Cuban government and as you surely know, Cuban economy is powered by tourism. That’s one of the reason car rental in Cuba could easily cost you more than rental of the same car in Canada. The ramification of renting a car during your Cuba vacation could be priceless, though. You can see much more than by staying at an all inclusive resort and you could meet with real Cubans and experience real Cuban culture and history. These real Cubans don’t live at hot tourist spots such as Varadero. They’re out in the country where Viazul buses don’t go. The only way to explore these areas would be to rent a car and drive around Cuba yourself.

Car rental prices in Cuba

While car rental prices are rather high, cars are rented as a whole, so if you’re a group, or if you can put a group of people together and drive the same car, it gets really reasonable. As a matter of fact, a group of four people could rent a car for the price it would cost them to take a Viazul bus each. Just as a quick note – traveling through Cuba via train is not advised. Trains are really slow and stop every while making the objective of getting from point A to point B a never-ending story.
Car rental agencies in Cuba charge per category of a car. You basically can’t rent a particular car, you would be renting type of a car. Below is the breakdown of different categories of cars you can rent in Cuba with example of a vehicle model and typical price for this category:

Economic Car Rental

Economic cars are tiny minicars that can (most times) sit four people. They almost always come with manual transmission only. These the most fuel effective cars available for rent in Cuba. All rental cars in Cuba are equipped with air conditioning.

Economic Car Models:
Hyunday Atos
Kia Picanto
Peugeot 206
Skoda Fabia
Volkswagen Polo

Economic Car Rental Price:

CUC 56/day

Middle Class Car Rental

Middle class are similar to the cheapest passenger cars available in Canada. They are available with both manual transmission and automatic transmission. As it goes, A/T rentals cost more than M/T ones. Air conditioning is a standard feature in all car rentals in Cuba.

Middle Class Car Models:
Hyunday Accent
Kia Rio
Peugeot 307
Skoda Fabia Combi
Toyota Yaris

Middle Class Car Rental Price:

CUC 76/day M/T
CUC 80/day A/T

High Middle Class Car Rental

High Middle class automobiles offer higher level of comfort and more space. They would be an equivalent of a $30k car available in Canada. They are available with both manual and automatic transmission – once again, renting a car with automatic transmission costs a little bit more. All rental cars in Cuba come equipped with air conditioning.

High Middle Class Car Models:
Hyunday Santa Fe
Hyunday Sonata
Peugeot 407
Toyota Corolla
Volkswagen Passat
Volkswagen Beetle

High Middle Class Car Rental Price:

CUC 90/day M/T
CUC 95/day A/T

Luxury Class Car Rental

Luxury class automobiles are for rent by those who are looking for ultimate driving experience and can afford top class car. German luxury car makes such as Mercedes or BMW fall within this category.

Luxury Class Car Models:
Mercedes E220
BMW 525i

Luxury Class Car Rental Price:

CUC 180/day M/T
CUC 200/day A/T

Minivan Rental

Minivans sit 7 people and are rather expensive to rent in Cuba. However if you’re a group of 7 or a large family, this could be the best option.

Minivan Models:
Hyundai Trajet

Minivan Rental Price:

CUC 180/day

Please note that prices are listed in CUC – that is Cuban Convertible Peso and is the official currency for tourists. Cuba has two currencies, one of them is for locals, the other one for tourists. It’s pretty much the way to rip tourists off as much as it goes, but who are we to complain.

One CUC had the same value as one US dollar. However since US dollars dropped in value in last few month and Cuban peso retain its own, the value of CUC is more than the value of US$. In general CUC 1 = $1.18 CAD. It is important to remember that US dollars are not accepted anywhere n Cuba. As a matter of fact, US currency is illegal in the US

We will take a closer look at Cuban currency in a dedicated article; let’s get back to car rentals in Cuba.

You won't be renting this car in Cuba, but you will see many of those

Car Rental Availability in Cuba

Book your car rental early. Seriously. The demand for car rentals in Cuba is always higher than supply of rental cars. This is Cuba, it works a whole lot different from Canada or elsewhere. If you don’t book your rental car in Cuba well in advance, you may end up getting disappointed with no car being available for you to rent. It gets so bad at time, that you could be put in waiting queue to see if any availability comes. Once again – more people want to rent a car in Cuba every year than they have available cars. Do not delay your car rental if you’re looking to drive around Cuba. You’ll save yourself from a lot of disappointment.

Car rental Agencies in Cuba

There are four largest car rental agencies in Cuba. Prices do not really vary since Cuba is a communist country and all car rental agencies are state owned:

Rex
Via
Cubacar
Havanautos

These car rental agencies have websites but they’re not very well done and inconvenient to use. There are a number of independent travel agents who use their booking engine and car can be rented from there using credit cards. However they all seem to be Europe based quoting and charging in Euro currency.

We at Cuba Tourism are looking to set up our website so we can offer car rental services to our Canadian clients in Canadian dollars. We’re working on it and it should become available soon, however at present time this option is not there yet.

Car Rental Policies in Cuba

There are several prerequisites for car rental in Cuba. As a general rule – you must be a bearer of valid driver’s license and be at least 21 years of age. Cuban car rental agencies charge CUC 250+ refundable deposit at the time of pick up. If you’ve rented an expensive car, the deposit will be much higher. It is your responsibility to inspect the car from the inside and the outside to make sure you do not get screwed over when you return it. They will take off your deposit if car is not found in the same condition it was picked up. Deposit will also be used to cover for any traffic fines you may incur whilst renting a car.

You will also be charged on average CUC 3 per day if you want an additional driver to drive a car you rent in Cuba. There is also an additional charge if you want to drop rented car at a different location than where it was picked up. I picked up my rental car in Havana and dropped it off at the Varadero airport and the “drop off at a different location” fee was 30 CUC. Sometimes you can go without being charged extra for drop off at different location, but if the drop off location is ways away from pick up location, this fee could be as high as 150 CUC.

Car insurance is also mandatory in Cuba. Typically it costs 10 CUC per day, but gets more expensive if you’re renting a higher class automobile. To find out more about car insurance, click on Car Insurance for Car Rentals in Cuba – How it Works.

Also note, that you will be charged on average 3 CUC per day if you want an additional driver to drive a car you rent in Cuba. There is also an additional charge if you want to drop rented car at a different location that where it was picked up.

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