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Car hire excess insurance: do you need it?
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Updated October 2026
Every hire car comes with basic insurance, but it usually includes a large excess: the amount you pay if the car is damaged or stolen. On many rentals it's £1,000 or more. Excess insurance covers that amount.
Rental desk cover vs standalone excess insurance
- At the rental desk: the hire company offers to reduce your excess to zero, often called super collision damage waiver or "excess reduction". It's convenient but usually charged per day and can cost more than the hire itself on a longer trip.
- Standalone excess insurance: you buy it separately before you travel, by the trip or as an annual policy. It's usually much cheaper, especially if you hire cars more than once a year.
How standalone cover works
With standalone cover, you still pay the hire company if there's damage, then claim the money back from your insurer. That means:
- The hire company will usually hold a deposit on your credit card for the excess amount, so make sure you have enough available credit
- Keep every document: the rental agreement, damage report, invoice and proof of payment
- The rental desk may still try to sell you their own cover. You don't have to buy it if you're already insured
What to check before you buy
- Tyres, windscreen, roof and underside: often excluded from basic cover, so check they're included
- Keys and misfuelling: lost keys and putting the wrong fuel in can be very expensive
- Where you're driving: UK only, Europe or worldwide
- Additional drivers: make sure everyone who drives is covered
- The maximum claim: it should be at least as high as the excess on your rental
Picking up and returning the car
- Walk round the car and photograph or film every panel, wheel and the windscreen before you drive off
- Make sure existing damage is marked on the paperwork
- Check the fuel policy ("full to full" is usually cheapest)
- Photograph the car, fuel gauge and mileage when you return it, especially out of hours
Comparing hire cars
Comparison sites such as Holiday Autos show prices from several rental firms at once, with the excess and fuel policy listed, so you can see the real cost before you get to the desk.
Getting to the rental desk
Picking up a hire car at the airport? If you'd rather not leave your own car in a long-stay car park, an airport transfer can get you there, or compare airport parking on Compare My Parking Deals.
This guide is general information, not insurance advice. Always read the policy wording before you buy.
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