A complete guide to car rental insurance in Montenegro

After you decide which is the right car for your trip, you have to think about how to insure your car and yourself.

When it comes to insurance for rented cars in Montenegro, it is essential to understand the different car insurance options available to ensure a worry-free and safe drive. And above all, protect yourself from unwanted expenses.

This guide aims to provide you with comprehensive information about our various insurance policies and a better understanding of car insurance, which will make your decision easier.

What is car rental insurance?

Car rental insurance provides coverage for vehicles rented from a rental company, such as Tara-Car. It helps protect the customer financially if the rental vehicle is damaged or stolen, or if you cause injury or harm to others while driving the rental vehicle.


One of the most important insurance options is super collision damage insurance (SCDW) and windshield and tire insurance. This insurance exempts you from paying the deductible/excess in the event of an accident, even if you caused the collision.

Complete guide to car rental insurance

It also covers tires and windshields, usually not covered by the standard collision damage waiver (CDW). However, it is essential to note that this insurance is only valid with a police report.

The price of SCDW and WWI insurance ranges from 7 EUR per day for a Clio, up to 20 EUR for a BMW 5, or 18 EUR for a Volvo XC 90. These are just a few examples, each car on our website has a specially highlighted price that you can view when vehicle reservations.

Remark: this option is not available for one-day rentals.

Full Coverage

If you are looking for maximum protection, consider choosing Full Coverage insurance. This comprehensive insurance policy eliminates any deductible/excess and relieves you of all liability, regardless of how the damage occurred.

It covers all possible damages, ensuring complete peace of mind during your rental period. With this option, a police report is not required. However, like SCDW and WWI, full coverage does not apply to one-day rentals.

Prices start from €15 for the Mini category and up to €25 for Lux or SUV category cars.

THP (Theft Protection) is included free of charge

When renting a car in Montenegro with Tara-Car, theft insurance is standard and included free of charge.

This means you don't have to worry about the cost of anti-theft protection, as it comes as a free car rental offer.

TPL (Third Party Liability) is included for free

Third-party liability insurance (TPL), also known as compulsory car insurance in Montenegro, is a legal obligation for all vehicle owners. This insurance covers all types of damage in the case of a rental car if it was not caused by the driver's fault, including all liability to third parties in the event of an accident.

However, when an accident occurs through the client's fault, the driver is only responsible for the damage to the rented car and not the damage to the other car.

This mandatory insurance is free of charge with your car rental, ensuring that you are covered in any accidents involving third parties.

PAI (Personal Accident Insurance) is included free of charge

Personal Accident Insurance (PAI) is another free extra that we offer to our customers. This insurance provides coverage for all bodily injuries sustained during an accident while driving a rental vehicle.

STHP (Super Theft Protection) is included for free

Finally, we also offer Super Theft Protection (STHP) as a free service. This additional coverage provides an extra layer of security, ensuring that you are fully protected in the event of vehicle theft.

On occasion car rental in Podgorica, it is crucial to understand the different insurance options available to make an informed decision that is in line with your specific needs and preferences.

By looking at the coverage provided by SCDW & WWI, Full Coverage, THP, TPL, PAI and STHP, you can enjoy a stress-free holiday and safe driving while exploring the beautiful areas of Montenegro.


It is important to note that compulsory and comprehensive insurance policies in Montenegro usually do not cover damage to tires and the front windshield. In addition, the insurance company will not cover any costs if the driver was under the influence of alcohol during the accident.

The driver's blood alcohol level must be within acceptable limits during the police test.

In addition, insurance will not be paid without an on-site infringement notice issued by the police.

Read in more detail:


As a rule, a deposit is charged for cars with mandatory insurance. In this case, the deposit is a deductible amount.

At Tara-Car, we strive to provide our clients with car rentals without a deposit, whenever possible.

However, the practice of most other car rental agencies is to deduct compensation from the deposit first. Which is taken from the client before renting.

Choosing insurance

At first glance, comprehensive insurance may seem like a better option. However, this is not always the case. According to statistical data, about 93% of car rental incidents in Montenegro are small and insignificant.

This can be attributed to two main reasons. First, traffic in Montenegro is mostly calm and relaxed, with speeds rarely exceeding 80 km/h.

Second, most tourists, aware of Montenegrin serpentines, drive slowly and cautiously. As a result, most damage is usually minor, such as scratches, chipped bumpers, or lights, which rarely cost more than 100-500€.

If the car has compulsory insurance, the lessee pays for the damage only when the accident is his fault. You have a much higher degree of protection if you buy naked from additional insurances, SCDW and WWI, or Full Coverage during the rental. Read the car rental insurance guide.

What happens if you crash a rental car without insurance?

Unfortunately, it can happen. And we are very sorry if this is the case. If you crash a car rental without insurance there are two scenarios:

  • If it is your fault, you will need to wait for a police report and to pay full damage to the car. Since our cars have Third-party liability insurance, you will not need to pay for the damage to the other vehicles in the crash.
  • In case you crash, and it is not your mistake, Third-party liability insurance will cover the entire damage but you will need to wait for a police report.

Final Thoughts

Understanding car rental insurance in Montenegro is crucial for a carefree and safe trip. With that said, we always advise clients to read our FAQ and details related to insurance.

Although there are various insurance options, the most common is compulsory auto liability insurance, which covers damages to the car and liability to third parties if the fault of the driver did not cause the accident.

SCDW and WWI or Full Coverage insurance cover a greater number of damages regardless of the driver's responsibility. Carefully considering all options and choosing the one that best suits your needs and budget is key.

Further reading:

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