The most important things summarized
The Mallorca policy, also known as the Mallorca clause or Mallorca cover, is additional protection for rental cars abroad. With many car insurance companies, it is automatically included in the motor vehicle liability insurance. Anyone who does not own a car can take out the Mallorca policy separately.
You need a Mallorca policy if you rent a car, motorbike or motorhome abroad. Because the coverage amounts of foreign rental car insurance are often lower than in Germany. In some cases, they are not sufficient to fully cover accident costs.
The Mallorca policy increases the sum insured for motor vehicle liability for your rental vehicle to the German level. This service also covers costs that your rental car liability insurance does not cover in the destination country.
What is a Mallorca policy?
The Mallorca policy is an additional insurance for rental vehicles abroad. You can sign them up for cars, motorcycles or mobile homes, for example. The Mallorca policy increases the coverage of your foreign rental car liability insurance. This means that the rented car is either covered by liability insurance with the same sum insured as your own car. Or at least secured with the minimum amounts of coverage prescribed by law in Germany.
Why does a Mallorca policy make sense?
If you rent a vehicle abroad, the insurance cover for your rental car liability depends on the regulations of the holiday country. This means: The car insurance of your rental car only covers damage up to the coverage amount that applies in the respective travel country.
- The problem: The minimum sum insured is much lower in many countries than in Germany – especially for personal injury.
- The result: If you cause an accident with a foreign rental car and the insured sum does not cover the damage, you have to pay the rest yourself.
- For example: Someone causes property damage of 200,000 euros with a rental car in Italy. However, the vehicle liability insurance of the car rental only includes an insurance sum of 150,000 euros. Without additional protection, the person would have to pay the difference of 50,000 euros themselves.
- The solution: So that you don’t have to pay the damage costs, you can book additional motor vehicle liability insurance with a sufficiently high sum insured for every trip abroad with a rental car. Or take out a Mallorca policy as a permanent alternative.
Why is the additional insurance called “Mallorca-Police”?
The colloquial term “Mallorca Police” has become commonplace over time. Because the official designation “insurance for the use of third-party, insurable vehicles” was simply too long.
The additional insurance owes its colloquial name to German holidaymakers on Mallorca who like to explore the Balearic Island by rental car. Since liability damage in Spain is often only covered with low sums insured, many German motor vehicle insurers advised taking out additional protection before going on holiday. But instead of using the long name, the additional insurance for rental cars was more and more often called Mallorca policy, Mallorca cover or Mallorca clause. In the meantime, insurance contracts usually only contain the short version.
Good to know: If the rental car protection is valid worldwide (e.g. also in the USA), it is usually called a traveler policy.
How much does a Mallorca policy cost?
With many German car insurers, Mallorca coverage is automatically included in motor vehicle liability insurance at no additional cost.
At Allianz Direct: The Mallorca Police is automatically included in the car insurance.
If the Mallorca policy is not included in your vehicle liability insurance or if you do not own a car, you can book the additional protection separately. The cost of the Mallorca policy depends on the provider and is between eight and 15 euros per year.
What services does the Mallorca policy cover?
Which services are covered by the Mallorca cover depends on the car insurance. The Allianz Direct Mallorca policy, for example, includes the following services as standard (as of 02/2022):
No insurance gap: If your foreign rental car insurance only partially covers damage, the Mallorca policy will pay the rest of the cost. There is no self-pay residual value that you have to pay out of your own pocket.
Scope of insurance: The Allianz Direct Mallorca policy covers all third-party motor vehicle liability damage that you cause to third parties or their property with the rental car.
Follow-up costs: The Mallorca cover covers costs arising from personal injury (e.g. for transport, medical treatment and rehabilitation), property damage (e.g. repairs to third-party vehicles, buildings and objects) or claims for damages and pain and suffering from the other party.
High sums insured: If you cause damage or an accident with your rental car abroad, Allianz Direct will cover up to personal injury 15 Mmillion euros and damage to property up to 100 million euros.
Insurance period: The Mallorca policy is valid from the day you receive the rental vehicle abroad.
Co-insured drivers: In addition to you as the policyholder, your life partner or spouse is also part of the group of insured drivers of the Mallorca policy.
No influence on no-claims class: The insurance company of the car rental company is responsible for damage caused by your rental car abroad. That’s why an accident has no effect on your no-claims class (SF class) of your Allianz Direct car insurance.
How much is the Mallorca coverage?
The coverage of your Mallorca policy depends on your car insurance. There are two alternatives:
- Coverage according to German standard: Motor vehicle liability damage caused by rental vehicles is covered in the amount of the German minimum insurance sums: 7.5 million euros for personal injury, 1.12 million for property damage and 50,000 euros for financial losses.
- Sum insured as with your own car: Your rental car abroad is insured with the same sum insured as your car in Germany. The minimum sums insured are often higher than required by law.
What does the Mallorca policy not cover?
A Mallorca policy only covers liability damage caused by a rented vehicle (e.g. car, motorbike, mobile home) abroad. This means that the Mallorca policy does not cover damage to the rental car itself or its loss due to theft.
In this case, it makes sense to take out additional comprehensive insurance (fully comprehensive or partially comprehensive) via the car rental company abroad. Rental car insurance with no excess might be best. It should also cover damage (such as stone chips) to tires, rims, roof and underbody.
In which countries is the Mallorca policy valid?
Your insurance contract states in which countries the Mallorca cover protects you. Most Mallorca policies are valid within the geographic boundaries of Europe and in non-European areas that fall under the jurisdiction of the European Union (EU). Depending on the provider, the Mallorca policy applies to other non-European countries such as Algeria, Israel, Morocco or Tunisia. With some providers, Turkey and Russia (European and Asian parts) are also included in the Mallorca coverage.
The Allianz Direct Mallorca policy covers you in these travel countries (as of 02/2022):
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