Don’t get hit by hire car excess insurance charges
Car hire excess insurance can be a particularly useful policy to take out if you hire a car and need to claim on car insurance for it. Here’s how it works.
Key points
Car hire excess insurance covers the high excess fees you might have to pay if a rental car is damaged or stolen.
The insurance reimburses you for the excess amount after making a claim on a rental car. It can be purchased as a single-trip or annual policy.
While car hire companies often offer excess insurance, it can be expensive. Stand-alone policies from specialist insurers are usually cheaper and more comprehensive.
What is car hire excess insurance?
Car hire excess insurance covers you against the cost of making a claim on car insurance for a hired car if it’s damaged or stolen. The cost of making a claim is known as the excess - it’s what you pay towards the claim before the insurer covers the rest.
Hired cars generally come with insurance that has a relatively high excess compared to standard car insurance, so excess protection can be valuable if you have to make a claim.
How does car hire excess insurance work?
With a car hire excess insurance policy you’ll be able to claim back the excess you pay when claiming on your rental vehicle’s insurance. Not all policies will cover the full excess - some will cover part of it, and some might exclude minor damage like cracked windscreens and broken headlights.
Car hire excess policies work similar to travel insurance, covering either a single trip or a whole year - good for those who regularly use hired cars. You should buy it in advance of your rental agreement as they don’t cover existing hire agreements.
What are the benefits of car hire excess insurance?
Car hire excess insurance can save you a decent sum if you have an accident while driving a hired car, as the excess payments on insurance policies for these cars can be high.
How do I make a claim on my car hire excess insurance?
You should get in touch with your insurance provider with the required information about the claim, then submit the relevant claim form - usually online, via email or by post. You should do this as soon as possible, as many insurers won’t pay out if you wait for more than 31 days before submitting your claim.
You’ll normally receive the payout to the same card you made the excess payment with, therefore directly to your bank account. It shouldn’t take long to arrive once your claim has been approved.
Do I need to buy additional cover when renting a car?
No - your car hire should come with at least third-party cover in place, and aside from car hire excess cover you won’t need anything else. It can be expensive however, especially if you buy from your car hire company, so we recommend shopping around to find the best deal.
How do I buy car hire excess cover?
Your car hire company will likely offer their own car excess cover, also known as excess waiver or collision-loss-damage-waiver insurance. This could be expensive, costing up to £25 per day and potentially costing hundreds, but the excess you might have to pay if you’re involved in an accident could be much higher.
It might be cheaper to buy a standalone policy from a specialist insurer, whether it’s single trip cover for a one time car higher or an annual policy to cover you whenever you hire a car. These policies might also have fewer exclusions compared to buying it from your car hire company
What countries can you get car hire excess cover for?
Some car hire excess policies will cover you for hiring a car worldwide, including the USA, Canada, Australia, as well as the UK, Ireland and mainland Europe. Remember to ensure your policy covers the countries you’ll be travelling to and in, as some will only cover hiring a car in Europe.
How to get cheaper car hire excess insurance
Here are a few things to consider if you want to try and get the best deal possible on car hire excess cover:
Buy your cover early, instead of leaving to the last minute at your car hire desk
Buy annual cover if you regularly hire cars as it will work out much cheaper
Shop around and compare policies to find the best deal, and ask your travel insurance provider to match it
Compare car insurance quotes
MoneySuperMarket does not currently offer a comparison service specifically for car hire excess insurance. However, you can find the the cheapest deals on car insurance and travel insurance policies by using our comparison service - just keep in mind that these are different types of insurance and won’t necessarily provide car hire excess cover.
Should I buy annual or single-trip cover?
Annual cover is likely to work out cheaper if you’re planning on hiring cars multiple times in a year. However it will depend on how long you’re away for as well as where you’re travelling to.
If you are going for an annual policy, try to find one that also covers car rental in the UK. This is just in case you ever need to rent a vehicle in this country.
How many times can I claim on my car hire excess insurance?
It depends entirely on your insurer and their policy. Some insurance providers will offer unlimited protection, and others will have a cap in place for the number of times you can claim within a specific time frame or the duration of your policy period.
Will my travel insurance cover car hire?
Usually, no. However, your travel insurance provider may offer the option to buy car hire excess insurance as an add-on to your policy.
Does car hire excess insurance cover scratches?
Generally speaking, yes - but be sure, always check the small print first. Scratches are usually a minor type of damage for which car hire excess insurance cover can be very useful. With no excess insurance, the repair cost would be lower than the excess, which means you would probably end up paying for the full cost of fixing the damage.
Author
Mehdi Punjwani
Insurance specialist
Mehdi is a financial writer and editor with over six years of experience in personal finance. He has written for organisations and publications including Equifax, The AA, and USAToday, covering a...
Reviewer
Saarrah Mussa
Former Content Writer
Saarrah was a MoneySuperMarket's in-house pet insurance expert. With broad experience writing across insurance products Saarrah is acutely aware of the complexities and costs consumers have to face...
