Car hire and car clubs Car hire jargon explained

If you've ever hired a car in the UK or abroad, you'll know how confusing the various extra charges and damage waivers can be.

Here, we'll explain the main types of charges you might incur (before and after hiring a car) and tell you about the laws and regulations you can use to claim back any disputed cash.

Car hire terms explained

Basic car hire insurance

Damage cover doesn't usually include car tyres

Three types of basic insurance are usually included in the price of car hire: cover for damage to the vehicle, theft and third party liability.

All three are usually subject to large excess fees (see below) that must be paid by the hirer in the event of making a claim.

Car hire damage cover

Damage cover goes by a number of different names including Collision Damage Waiver, Damage Excess Waiver or Vehicle Damage Cover. It's basic cover that pays for accidental damage to the hire car under certain circumstances, and is usually subject to a large excess.

Car hire damage cover doesn’t usually include cover for certain areas of the car such as its tyres, windscreen, underside and roof, and it provides no personal injury cover.

Third party car hire cover

Third party insurance is often included in the car hire price

Third party insurance is often included in the cost

Third party cover is also called supplementary liability insurance – it’s basic insurance cover with a low set limit that’s usually included in the hire price.

Extended protection

Extended protection is simply a higher level of third party cover for claims made against the hirer, usually with a set limit.

It also pays out up to a set limit if the driver or members of their family are injured or killed by an uninsured driver while using the vehicle. Not usually included in the hire fee.

Theft Protection or Vehicle Theft Cover

Theft protection can be subject to a large excess

Theft Protection or Vehicle Theft Cover, as it's sometimes called, provides cover for the theft of the hire car.

This is usually included in the hire price and subject to a large excess.

Read the Which? guide to how to avoid car crime.

Excess

The excess refers to a set amount that the hirer must pay towards the cost of any insurance claim. With the free insurance elements it can be set very high, ranging from around £500 to £1,500.

Super Collision Damage Waiver, Deductible or Non-Waiver cover

These are optional extra insurance premiums offered by car hire companies that reduce the excess payable in the event of a claim to a minimal sum – typically £50 to £100.

Costs vary, but many car hire companies charge around £10 a day for this cover. Which? suggests considering alternative insurance cover that could work out cheaper.

Find out more in our guide to short term car insurance.