Car hire insurance is one of the most confusing and potentially costly aspects of renting a vehicle. Rental desks are notorious for pressure-selling expensive add-ons. This guide explains what's what — so you can make an informed decision before you travel.
What's usually included in the base price
Most car hire prices include a basic level of cover as standard:
- Collision Damage Waiver (CDW) — limits your liability if the car is damaged in an accident, but usually with an excess of €500–€2,500 that you're responsible for
- Theft Protection (TP) — covers you if the car is stolen, again typically with an excess
- Third-party liability — covers damage or injury to other people or property, usually to the local legal minimum
The excess: what it means
The "excess" (also called the "deductible") is the maximum amount you'll pay out of pocket if something goes wrong. A €1,500 excess means that even though your CDW covers damage, you'd still pay the first €1,500 of any claim.
Rental companies will often offer an "excess waiver" or "Super CDW" at the desk, which reduces your excess to zero — but at a significant daily cost, often €15–€30 per day.
Third-party excess insurance: the smart alternative
The most cost-effective approach for most travellers is to buy standalone car hire excess insurance before travel. This type of policy:
- Covers the excess charged by the rental company if there's damage or theft
- Costs a fraction of what rental desks charge — often $4–$9 per day, or $38–$76 for an annual policy
- Covers multiple hire cars throughout the year (with an annual policy)
What about my credit card?
Some premium and gold credit cards include car hire excess insurance as a cardholder benefit. Check with your card provider before you travel — if you're covered, you may not need to buy additional insurance at all. Key things to verify:
- Does the cover apply in the countries you're visiting?
- Does it cover the vehicle categories you're hiring?
- Do you need to pay for the hire on that card for cover to apply?
- What is the claims process?
What isn't covered by standard insurance
Standard CDW and TP policies typically exclude damage to: tyres, wheels, windscreen, roof, underbody and interior. This "super excess" damage can be very expensive. Many rental companies sell additional cover for these items — or you can find third-party policies that include them.
Summary: what we recommend
- Always check what's included in your base price before booking
- Decline the rental desk upsell unless you have no other option
- Buy standalone excess insurance before you travel — it's almost always cheaper
- Check your credit card cover carefully
- Photograph the car thoroughly before driving away
Compare car hire prices now and look for included extras when choosing your vehicle.