Car Hire Excess Insurance

When you hire a car, you’re usually offered many different products with it at an extra cost. One of these is an Excess Waiver.

Furthermore, particularly in North America, Collision Damage Waiver (‘CDW’) may not be included. Without CDW you may be liable for the entire vehicle value. If you take out the hire car company’s CDW it will usually come with an excess and this is covered by the hire car company’s Excess Waiver.

What we all forget, however, is that the extras you are charged at the desk have much more affordable alternatives.


Need to know

  • Accidents are not always unavoidable. If your hired car is damaged or stolen, you are liable to pay an excess which can amount to prices between £500 - £2,000, an amount often far more than the cost of hiring the car in the first place. If CDW is not included you may be liable for ALL of the damage to the vehicle.

  • Essentially, the car hire company’s Excess Waiver is an option that protects you from the excess you would have to pay should your car get stolen or damaged.

  • With an Excess Waiver you are able to get out and explore with your hired car without the worry.


Reduce the cost of car hire excess insurance

  • Your car hire company will try to persuade you to take out their own Excess Waiver and, perhaps, CDW when you come to collect your hire car but there are much cheaper alternatives.

  • Many people rent cars every year but don’t shop around for the cheaper alternatives, sometimes just agreeing to the high charges that companies offer.

  • Excess Waiver charges from car hire companies can be up to £25 a day, whereas UK insurance alternatives can be as little as £2-£3 a day.

  • Alternative car hire excess reimbursement insurance provides cover of around £5,000 per incident with their policies. At an additional cost CDW cover from UK insurance alternatives typically provides cover up to US$100,000 (this cover may be limited to North America).

  • The car hire companies are not expected to recognise all of the UK’s insurance certificates and those from the rest of the world. The UK excess reimbursement insurance does not pay the car hire company directly, you remain liable for the excess and reclaim the excess when you return to the UK.  By all means take the insurance certificate with you in case you are asked to show it, but the likelihood is that they will not understand it and they will still try and sell you their Waiver products.

  • The key thing to remember when going for alternative excess reimbursement and CDW insurance is that you must purchase it before you collect the hire vehicle, and make sure you say no to their Excess Waiver and CDW cover when offered to you by your car hire company.


Car Hire Excess Insurance providers


Why we like it:

  • ReduceMyExcess will provide reimbursement of the excess you’re obliged to pay
  • They cover individual car rental agreements up to 180 days or annual multi-rental cover with a 31-day limit per car rental agreement
  • Available for Europe or Worldwide, UK cover is automatically included
  • Cover can be from as little as £2.30 a day (Minimum purchase price applies, this is the 4 day price).
  • Covers up to £7,000 excess reimbursement
  • Covers up to $50,000 USD in North America if an additional premium is paid.
  • You do not need your documents before you collect your car, you just need to purchase your cover for it to start before you collect your car
  • Every driver named on the rental agreement is covered as long as the policyholder is the Lead Named Driver.

Watch out:

  • You must be aged 21-84 at the start date of your policy for cover to apply
  • 9 seater cars, including the driver, is the maximum they provide cover for
  • Does not cover courtesy cars
  • Discount code ends on 30th of June

The inside track

  • For just a small amount of money upfront, you can make sure you are protected against any excess attributable to theft or damage to your hire car.

  • By beating your hire firm’s sales tactics, you can save up to £20 a day!

  • Like travel insurance, you can purchase a policy for one trip or one to cover all of your trips in a year. A standalone excess insurance policy can be up to £3.99 a day, a one-week policy around £35 and annual policies near the price of £60.

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