If you’re hiring a car, you may be wondering whether car hire excess insurance is really necessary. While it’s not a legal requirement, many travellers choose to buy it for added peace of mind.
What happens when I rent a car?
When you rent a car, basic insurance, typically Collision Damage Waiver and Theft Protection, is usually included in the rental cost. However, this insurance often comes with a high excess. That is the amount you’re liable to pay if the car is damaged or stolen, which can range from £500 to over £2,000. That means if something goes wrong, you could be left footing a hefty bill.
How does car hire excess insurance cover this?
It’s good to know that car hire excess insurance covers this liability. If the rental car is damaged or stolen, the policy reimburses you for the excess charged by the hire company. It can also cover areas not included in standard CDW policies, such as tyres, windscreens, and undercarriage damage, which are often excluded but commonly subject to damage.
Where can I buy this insurance?
You can buy car hire excess insurance directly from the car hire company. Alternatively, you can purchase a standalone policy from a third-party provider, sometimes for as little as £2-£5 per day, or under £50 for an annual policy if you hire cars frequently. Car excess cover is a form of insurance, acting like the insurance to your insurance.
The cover is important and offers peace of mind
Whether or not you need it depends on your attitude to risk and your all-important budget. If you’re confident in your driving, happy to take the risk, or willing to use a credit card with rental insurance benefits, you might decide to skip it. However, for many people, paying a small amount upfront for excess insurance is a worthwhile trade-off for avoiding a potentially large expense when you return from your holiday. In short, car hire excess insurance isn’t essential, but it’s a smart way to protect yourself financially while enjoying the freedom of driving a rental car.