Car Hire Excess Insurance: what you need to know


Many people decide to rent a car when they go on holiday. It is a good idea; you will save money on hotel transfers and you will not be limited to visiting only places where you can find excursions.

If you are travelling to Europe, you could consider driving the whole way, but a far less stressful experience is renting a car when you arrive in the country, or more likely picking up a car that you have booked online, thus saving more pennies. However, with a car rental comes hidden costs and fees that can add up. But by doing your research you can limit these costs to only the essentials.

One potentially extortionate cost is car hire excess, but you can protect yourself from this by taking out car hire excess insurance.

Car hire excess is similar to your own car insurance excess, whereby if you need to make a claim you are liable for the first part of any repairs, or the excess.  In the agreement when you rent a car there are usually a number of insurances that protect the vehicle, such as third party and collision damage.

Claiming for any of these insurances will incur the car hire excess cost, and you can be sure this cost is far higher than your excess at home. The amount does vary, and with some companies you can negotiate a lower excess for a higher premium, however in general the car hire excess is somewhere between £1000 and £3000. Most likely, more than the cost if you scrape the car on a wall, but even then you’d be liable to pay the full excess amount.

It can make hiring a car when on holiday an unnecessarily stressful experience and it does put people off doing it. Fortunately, you can protect yourself with car hire excess insurance. When you book your rental, you can pay an excess waiver, but this is likely to be tens of pounds a day.

By taking out car hire excess insurance from as little as £2-£3 per day you are protecting yourself from scary excess costs at a fraction of the price. Obviously you don’t plan on scratching that shiny new hire car, but the cost of car hire excess insurance compared to the costs of paying for a crash makes it a no-brainer.

With this protection against car hire insurance costs you can look forward to that driving holiday instead of being too scared to even get behind the wheel.