Car hire advice
Car hire insurance
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We've reviewed car hire excess insurance policies, to help you decide which one to buy, plus we tell you how to decode car hire insurance jargon and avoid the rip offs
When you hire a car, it usually comes with basic insurance included in the price so that you won’t have to pay the full cost of replacing a stolen or damaged vehicle.
But the basic insurance is subject to an ‘excess’ meaning that you could have to pay a contribution of up to £2,000 towards repair or theft costs, regardless of who is at fault.
To avoid having to pay a massive excess, you can take out an Excess Reimbursement Insurance (ERI) policy from a third party insurance company. This is normally far cheaper, and often more comprehensive than the cover offered by car hire companies.
You can buy a daily or annual policy. But which of the many third party ERI policies should you buy?
Best car hire excess insurance
We rated 11 leading car hire excess insurance companies including icarhireinsurance, insurance4carhire.com, carhireexcess.com, reducemyexcess.co.uk and Questor to help you choose the insurance company that gives you the most comprehensive cover for your money. Unlock the table to find out:
- which car hire insurance companies provide the best cover
- comprehensive policy scores rating individual policies against fifteen different categories
- The maximum amount you can claim per policy
- One week and annual prices for car hire insurance policies.
Should you buy car hire excess insurance?
You have two options to reduce your excess liability:
1. Buy insurance from a standalone insurance company. This is called Excess Reimbursement Insurance (ERI) and can be purchased online, in advance of your trip. If there is any damage, you will have to pay the excess to the car hire company, but you will then be able to claim it back. See our car hire excess insurance reviews below.
2. Buy insurance from the company renting you the car. This is usually called Super Collision Damage Waiver (SCDW) and can be purchased at the rental desk. SCDW reduces the excess (often down to zero) that you will have to pay in the event of damage.
There are pros and cons to both options:
Super Collision Damage Waiver
Car hire companies sell SCDW, allowing you to reduce your excess to a very small amount, often zero. This cover has many different names, including Excess Waiver, Super Cover and Excess Protection. But it’s expensive.
Our table below shows quotes we obtained from a selection of major car hire companies, ranging from £14 to £27 per day. The SCDW covers a week’s rental in Spain. We reduced the excess to zero and where possible we included cover to protect the car’s windscreen, undercarriage and tyres.
One major advantage of paying the car hire company for SCDW is that the company will not require a large pre-authorisation on your credit card. Pre-authorisations can be as high as €2,500 with some of the budget operators.
|SCDW - purchased from car hire companies to reduce your excess|
|Car hire company||Excess without SCDW||Credit card preauthorisation without SCDW||Windscreen covered?||Undercarriage covered?||Tyres covered?||SCDW cost (£)|
Car hire insurance jargon buster
Car hire customers are regularly falling foul of unexpected and unclear contract terms.
Here are some of the commonly used terms relating to car hire insurance.
You can also see which companies are best at explaining these extra charges in our car hire company comparison.
Collision damage waiver (CDW)
CDW insurance, providing cover in the event of damage or theft of the vehicle, is usually included as standard if you are hiring a car in Europe or Australasia. In the USA it may have to be purchased separately.
However, CDW is not complete protection. All it means is that you will not have to pay the full cost of any repairs, but you will have to pay a contribution to repair costs up to an agreed level of 'excess' which can be as high as £2,000, regardless of who is at fault.
In addition, CDW generally does not cover certain areas of the car, such as the windscreen, tyres and the undercarriage. You will not usually be covered for damage caused while you were breaching the rental agreement, or caused by negligence or using the wrong fuel.
You will not usually be covered for damage caused while you were breaching the rental agreement, or caused by negligence or using the wrong fuel.
Theft protection (TP)
This covers you against the full cost of replacing the vehicle if it is stolen while in your possession. Like CDW, this insurance is normally included in the price, and like CDW it does not cover everything.
For example thefts as a result of negligence, such as leaving the car keys in the ignition, will not be covered. And there will still be an excess to pay.
Personal accident insurance (PAI)
You may also be offered extra cover for any injury to you or passengers while you are driving the car. However, this would normally be covered by your travel insurance.
In the same way, you may be offered cover for personal belongings in the car. This is known as personal effects protection (PEP). Again, this may be covered by your travel or home insurance.