Finding the best car hire deal isn't just about getting hold of the cheapest rental car. The extras you're charged at the rental desk can add substantially to the cost. The most expensive of these extras is car hire excess insurance, which can cost as much as £20 per day, depending on the hire firm and the location.

We've teamed up with iCarhireinsurance.com, a leading provider of stand-alone car hire excess insurance, to help our customers get a better deal.

What is car hire excess insurance?

In the event of an accident, hire car excess insurance covers the first part of any claim, otherwise known as the “excess”.

The amount of the excess varies from one rental provider to the other, however it is usually between £500 and £2,000 per vehicle (it can be even more on high-value vehicles). This amount is often far more than the cost of renting the car in the first place.

What many travellers don’t realise is that, if a rental car is damaged or stolen, the person renting it is nearly always liable for the first portion of the loss when they claim.

Car hire excess need-to-knows:

• Car rental contracts usually offer some level of cover, for example, Collision Damage Waiver (CDW, sometimes referred to as Loss Damage Waiver - LDW) or third-party liability insurance, however, car hire excess insurance can offer further piece of mind
• Car hire excess insurance can offer cover to areas such as damaged to tyres, chipped or shattered auto glass, and undercarriage damage. These ‘extras’ are commonly omitted from standard car rental insurance policies.
• The standard policy with iCarhireinsurance provides up to £6,000 excess protection, which should be more than enough to cover most normal rentals

Do I need car hire excess insurance?

Although it’s not a legal requirement to have car hire excess insurance, it can save you money in the event of an accident. Some other benefits include…

• Lower prices – With prices starting at just £2.99 a day for cover in Europe, you can save up to 65% on rental desk rates


• Higher savings – If you travel several times a year, you may save with an annual policy. Prices start at £42.99 a year for Europe, while annual worldwide car hire excess starts from £69.99


• More choice – You can choose between European, USA/Canada or worldwide car hire coverage


• Fewer restrictions – UK rentals are automatically included for UK residents at no extra cost and there are no “distance from home” restrictions


• Additional drivers – Up to nine named drivers are included per policy


• Misfuelling cover – Covers excess costs if you put the wrong type of fuel in your hire car.

How does car hire excess insurance work?

Buying and using a car hire excess reimbursement policy couldn't be easier...

Our four-step approach will have you driving safely with low-cost, comprehensive cover in no time at all.

1. Buy your annual or daily car rental excess insurance policy from our partner iCarhireinsurance.com before you travel. If for any reason you forget to do so, you can still buy it on the day you pick your vehicle up - but you can't backdate the policy
2. Print out your car hire insurance policy and keep it with you (or keep a copy on your smartphone or tablet)
3. Say no to the additional insurance or excess waivers you're offered at the rental desk or when you book your car online or by phone. If you're given the hard sell, told your existing policy is worthless or that the police won't recognise it, stand your ground. These are just high-pressure sales ploys. 
4. However, remember that if you use a stand-alone insurer, the rental company is likely to ask you to leave a deposit (usually a pre-authorised amount on a credit card, so make sure you have sufficient credit available to cover this)
5. If you do incur damage or your car is stolen and you're charged an excess amount when you drop the car off, claim it back from iCarhireinsurance.com within 60 days of your return to the UK. The online claims service is available for claims submission 24/7, 365 days a year

How do I get a good deal on car hire excess insurance?

You can protect yourself against this potential sting by purchasing an excess waiver for your rental.

Some companies will try to sell you a waiver when you make your booking, and most will offer it to you again when you collect your car – however, these can cost as much as £20 a day from the rental company.

At TravelSupermarket we have had frequent reports of car hire renters being subjected to hard-sell tactics when picking up their car. These are designed to worry the driver into taking out an overpriced and underinsured waiver product. But do not fear! The alternative is to buy a stand-alone excess reimbursement policy before you travel.

You'll be amazed by how much you could save. For example, if you purchase a standalone excess policy via TravelSupermarket it costs from as little as £2.99 per day. A typical one-week policy would cost under £28 for European destinations such as Malaga, or just under £35 for a week's car hire excess insurance for destinations outside of Europe.

For customers taking longer trips, or who rent cars multiple times a year, annual car hire excess policies offer even better value at just £42.99 for European cover or £69.99 for a Worldwide policy.

So, opting to buy here in the UK via TravelSupermarket is cheaper and gives you a better product with more peace of mind.

And this cover is available for all destinations in the UK as well as overseas. UK rentals are covered as standard on both European and Worldwide excess policies for UK residents.

To see how much you could save, get a quote today.

*Note: It's mandatory in most locations worldwide for third party liability insurance to be included automatically with car rental. However, be aware that these limits can sometimes be low in locations outside of Europe.

It is also customary for CDW/LDW to be included with car rental throughout Europe, however in some locations this can vary. Always check with your rental company prior to travel to ensure you know what is included with your rental, even if you have used the company before.

Outside of Europe the requirement for rental companies to provide CDW/LDW automatically varies, again check carefully with your rental company to ensure you understand what insurance you have prior to arriving at the desk.

What types of policy are on offer?

If you're going on a short break, a daily policy may work out as the best option. Paying £2.99 per day for cover is a great value.

However, if you are travelling for 12 days or more, or rent more than one car per year, you could save even more with an annual hire car excess insurance policy.

With prices starting from just £42.99, if you're a frequent user who usually buys the excess waiver at the rental desk, an annual policy will have paid for itself after the first few days of use!

FAQ: Fast answers about car hire excess

What is Car Hire Excess Insurance?

A policy that covers the first part of any insurance claim (the excess) that the claimant is usually liable to pay.

This amount is usually between £500 and £2,000. With car hire excess insurance, you will not have to pay anything.

Do you need excess car hire insurance?

Although it’s not compulsory, it can save you money if you have an accident, or your rental car is stolen.

What is covered?

The excess amount (usually between £500 and £2,000). The windows, tyres, the roof and the undercarriage are also covered – most standard policies don’t include these parts of the car in their insurance.

What types of policy are on offer?

Generally, there are two types: daily cover (from £2.99 per day) and annual cover (from £42.99). If you travel frequently, the annual policy could work out to be better value.

What is a Collision Damage Waiver (CDW)?

This is a type of basic insurance cover that most rental companies offer as standard. It limits how much a company will charge for damage. Generally, this covers the car’s body work, but not much else. This varies between providers.

What is a Loss Damage Waiver (LDW)?

An optional level of insurance that covers you in the event of loss or damage to a rental vehicle.

What is Supplemental Liability Insurance (SLI)?

Cover that protects you in the event of a collision with a third party. It insures you against any claim a third party may make regarding damage to their vehicle or injures they may suffer as a result of the accident.

How do I get a good deal on car hire excess insurance?

It is usually cheaper to take out an independent car hire excess policy before you travel – policies sold at the car rental desk can be expensive in comparison. If you travel regularly, an annual policy may work out to be better value.

How much does excess insurance cost?

Single, daily policies start at £2.99 per day. Annual policies begin at £42.99.

What are the requirements for car rental insurance in the USA and Canada?

Collision Damage Waiver (CDW), Loss Damage Waiver (LDW) and Supplemental Liability Insurance (SLI) may not be included as standard. However, CDW and LDW are required, so you’ll need to take out your own policy before you travel. SLI may not be compulsory but you should check with your rental provider in advance.

Does my car insurance cover hire cars?

Most standard car insurance policies do not cover rental cars. Even if they do, cover is likely to be extremely limited.