What is Car Hire Excess Insurance?
PUBLISHED ON Jan, 20 2023
UPDATED ON Apr, 20 2026
Key takeaways
- Excess in car rental is the maximum amount of money you are liable to pay for damages to, or the theft of, the rental vehicle.
- Car hire excess insurance is a policy that reimburses you for the “excess” amount you are liable to pay if a rental car is damaged or stolen.
- If the rental company charges you for damages, you pay them first and then submit a claim to your excess insurance provider to be reimbursed.
While car hire companies often offer excess coverage, it can be expensive. You can purchase excess insurance as a standalone policy from third-party insurers, which is often cheaper than buying it directly from the rental desk.
What is Excess in Car Rental?
Excess in car rental is the maximum amount of money you are liable to pay for damages to, or theft of, the rental vehicle.
What is Car Hire Excess Insurance?
Car hire excess insurance, or excess waiver insurance, is your shield against the financial strain imposed by high excess fees that come with rental car agreements. When you secure this additional policy, you’re effectively ensuring that, in the event of rental car damage or theft to your rental vehicle, you will not have to shoulder the full brunt of the excess charges. Think of it as a safety net, allowing you to enjoy your rental experience without the looming worry of incurring substantial costs from unexpected incidents. It’s a layer of protection that covers the gap between the rental company’s own insurance and the excess fee, giving you peace of mind on your travels.
How Does Car Hire Excess Insurance Work?
When you rent a car, it usually comes with basic insurance included in the price, also know as Collision Damage Waiver (CDW), so that you won’t have to pay the full cost of replacing a stolen or damaged car. But the basic coverage is subject to an ‘excess’ meaning that you could have to pay towards repair or theft costs, regardless of who is at fault.
Let’s take a simple example: If we take a car collision that results in a €2,500 cost to repair the damage, and your excess was €900, as an example, under the terms of a car rental agreement you would have to pay an excess of €900 to the car rental company, and the car rental company would be liable to pay the remaining amount.This is where car hire excess cover comes in as it is there to prevent you from having to pay these hefty excess fee charges and to give you peace of mind should something go wrong.
How the process works?
- Initial Payment: In the event of damage or theft, the rental company charges you the excess amount defined in your agreement, which can often be hundreds or thousands of dollars.
- Reimbursement Claim: You submit the documentation of this charge, along with any required incident reports, to your excess insurance provider.
- Coverage Limits: Policies typically have a maximum coverage limit (e.g., up to £7,500) and may include coverage for parts often excluded from standard rental company policies, such as tyres, windscreens, and undercarriages.
Real World Example: How Car Hire Excess Insurance Saved a Customer More Than € 2,000
A customer named Maryna rented a car for a week-long vacation in Europe (Bulgaria). Despite declining the rental company’s insurance coverage due to its high cost, Maryna decided to purchase standalone car hire excess insurance from CarInsuRent after reading about its benefits.
Maryna’s rental agreement
During her trip, Maryna was driving along the road and collided with a tree. Despite adhering to all traffic regulations, including speed limits, the circumstances led to scratches over the right side of the car, and small deformations of the right front door and right front aluminum rim. When she returned the car, the rental company quoted her an excessive – €2,230 repair cost, which included the fixing the damages plus additional administrative fees.
Maryna’s damage report
However, Maryna had purchased car hire excess insurance, which covered the excess amount she would have to pay in such situations. As a result, she was able to file a claim with CarInsuRent, and we reimbursed her for the repair costs incurred by the rental company. This saved Maryna thousands of Euros, as she only had to pay for the car hire excess coverage instead of the full repair bill.
Maryna’s excess payment statement
This scenario highlights how car hire excess insurance can save customers a significant amount of money by covering unexpected damages to rental cars, providing peace of mind and financial protection during travels.
See How Much You Can Save on Your Car Hire Excess Insurance
Get StartedCar Rental Super CDW Is Ridiculously Overpriced
Car rental companies sell Super Collision Damage Waiver (SCDW), allowing you to reduce your excess to a very small amount, often zero. This cover has many different names, including excess waiver coverage, Super Cover and Excess Protection. But it’s not cheap and can double the price of the rental.
The SCDW that reduce the excess to zero might cost from €15 to €30 per day. One major advantage of paying the car hire company for SCDW is that the company will not require a large pre-authorisation on your credit card. Pre-authorisations can be as high as €2,500 with some of the low-cost rental companies.
Sixt Rental Car Insurance in France
Comparing Rental Company SCDW with Third-Party Providers
When comparing rental company insurance with third-party providers, there’s a clear distinction, particularly in cost and coverage. Rental companies often offer convenience but at higher prices with their insurance products. On the other hand, third-party providers typically present more affordable options with potentially broader coverage, often including parts of the car that rental companies exclude, like tires and windshields.
Third-party insurance can cover you for damages that are not usually included in rental companies’ policies. They can also provide additional perks such as coverage in multiple countries or for additional drivers, making them a versatile choice for many travelers. It’s worth looking beyond the rental desk and considering third-party insurance for a more cost-effective and comprehensive protection plan during your car rental period.
We compared and analyzed Super Collision Damage Waiver costs for a 7-day rental of a standard car class (July 1st – July 7th). The car rental insurance rates listed here are subject to change by the car rental companies without notice. For the most up-to-date pricing information, we encourage you to request a free online quote prior to booking.
CarInsuRent’s car hire excess protection for rental vehicles in Europe offers the same coverage at a 70% lower cost!
| Country | Collision Damage Waiver (CDW) + Theft Protection (TP) | Avg. Super Collision Damage Waiver Cost at Counter* | Avg. Insurance Deductible at Counter* | Avg. Cost for Rental Car Excess Insurance with CarInsuRent |
| France | Included at the rental price | € 25.75 | € 2,235 | US$ 8.49 per day or US$ 129.90 for annual coverage |
| Germany | Included at the rental price | € 33.29 | € 1,390 | US$ 8.49 per day or US$ 129.90 for annual coverage |
| Iceland | Included at the rental price | € 26.08 | € 1,950 | US$ 8.49 per day or US$ 129.90 for annual coverage |
| Ireland | Included at the rental price | € 24.40 | € 2,190 | US$ 8.49 per day or US$ 129.90 for annual coverage |
| Italy | Included at the rental price | € 34.80 | € 2,040 | US$ 8.49 per day or US$ 129.90 for annual coverage |
| Spain | Included at the rental price | € 31.65 | € 1,850 | US$ 8.49 per day or US$ 129.90 for annual coverage |
CarInsuRent Car Rental Excess Waiver Insurance
To avoid having to pay a massive excess and not to double the price of the rental, you can take out car hire excess insurance policy from a third party insurance company, such as CarInsuRent. This is normally far cheaper, and often more comprehensive than the cover offered by car hire companies, as it will cover tyres, wheels, undercarriage, roof and windscreen. You can buy a daily or annual policy.
By buying excess insurance from CarInsuRent, you’ll be covered against excess charges of up to US$4,500. CarInsuRent offer annual insurance policies much cheaper than rental agencies. With annual policies starting from $129.90, this can easily be more cost-wise especially if you are making multiple bookings over a year.
We recommend to take out excess waiver insurance. This means that if you have an accident you would have no excess to pay. The car rental companies offer this cover at the rental desk but it’s a lot cheaper to get it here BEFORE you travel from a specialist provider. We provide coverage for European Car Hire Excess Insurance, USA & Canada Car Hire Excess Insurance, Australia Car Hire Excess Insurance, UK Car Hire Excess Insurance.
Amazing service. always efficient, friendly, responsive. i got my payment within days of submission. Bill is warm. A pleasure to work with them. highly recommended. I feel safe with them.
The Benefits of Third-Party Car Rental Excess Waiver Insurance
Cost-Effectiveness of Third-Party Insurance Options
Third-party insurance options often prove to be more cost-effective than the rental company’s excess reduction products for several reasons. Firstly, third-party policies are generally more competitively priced, offering similar or even greater coverage at a fraction of the rental company’s daily rate. Also, purchasing from a third-party insurer means you can typically secure coverage for an extended period or multiple rentals, providing better value for frequent renters or longer journeys. It’s a smart move budget-wise, as you can enjoy comprehensive protection without the steep price tag that comes with purchasing excess reduction options directly from the car hire firm.
Extensive Coverage: Why It’s Worth Considering
Opting for third-party car rental excess waiver insurance is worth considering for its extensive coverage. Unlike standard policies from rental firms, which often leave gaps, such as excluding tires, windows, or undercarriage damage, third-party policies usually encompass these vulnerabilities. By covering a broader range of potential incidents, from minor scrapes to significant mishaps, you can drive with added confidence. These policies can also include additional benefits like coverage for lost keys, personal belongings, or misfuelling, further safeguarding your rental experience against the unpredictable. Comprehensive coverage can convert potential stress into peace of mind, making it a smart investment for any car renter.
Car Hire Insurance Explained
Understanding car hire insurance terminology can be like trying to navigate a road map with missing signs. Here’s a quick guide:
Collision damage waiver (CDW) – Provides cover in the event of damage or theft of the vehicle, and is usually included as standard if you are hiring a car in Europe or Australasia. In the USA it may have to be purchased separately. However, CDW is not complete protection. All it means is that you will not have to pay the full cost of any repairs, but you will have to pay a contribution to repair costs up to an agreed level of ‘excess’ which can be as high as €2,500, regardless of who is at fault. In addition, CDW generally does not cover certain areas of the car, such as the windscreen, tyres and the undercarriage. You will not usually be covered for damage caused while you were breaching the rental agreement, or caused by negligence or using the wrong fuel. You will not usually be covered for damage caused while you were breaching the rental agreement, or caused by negligence or using the wrong fuel.
Super Collision Damage Waiver (SCDW): An upgraded version of CDW that reduces or eliminates the excess. It’s more expensive and offered by the rental companies.
Theft protection (TP) – This covers you against the full cost of replacing the vehicle if it is stolen while in your possession. Like CDW, this insurance is normally included in the price, and like CDW it does not cover everything. For example thefts as a result of negligence, such as leaving the car keys in the ignition, will not be covered. And there will still be an excess to pay.
Personal accident insurance (PAI) – You may also be offered extra cover for any injury to you or passengers while you are driving the car. However, this would normally be covered by your travel insurance. In the same way, you may be offered cover for personal belongings in the car. This is known as personal effects protection (PEP). Again, this may be covered by your travel or home insurance.
Supplemental Liability Insurance (SLI): Increases your liability coverage for damages caused to others.
Remember, terms and coverage can vary by provider and location, so always check the fine print.
See How Much You Can Save on Your Car Hire Excess Insurance
Get StartedHow Do I Make a Claim on My Car Hire Excess Insurance?
To make a car hire excess insurance claim, first pay the rental company for damages directly and collect all documentation, such as the rental agreement, damage report, and invoices. Then, submit these documents through your insurer’s online portal within the specified timeframe to request reimbursement.
If you purchse CarInsuRent car hire excess insurance and you are involved in an accident while driving a rental car, there are certain steps you should follow to file a claim. Transparency and responsiveness are foundational principles of CarInsuRent’s claims process. All claims are assessed strictly in accordance with clearly defined policy terms that are publicly available to customers prior to purchase. Claim outcomes, whether approvals or declines, are accompanied by written explanations referencing the applicable policy provisions and documentation requirements.
In line with this commitment to transparency, CarInsuRent publishes aggregated claims statistics and trend analysis, available in our Annual Claims Report.
FAQ
What is Excess in Car Rental?
Excess in car rental is the maximum amount of money you are liable to pay for damages to, or theft of, the rental vehicle.
What is car hire excess insurance?
Car hire excess insurance, or excess waiver insurance, is your shield against the financial strain imposed by high excess fees that come with rental car agreements. When you secure this additional policy, you’re effectively ensuring that, in the event of rental car damage or theft to your rental vehicle, you will not have to shoulder the full brunt of the excess charges. Think of it as a safety net, allowing you to enjoy your rental experience without the looming worry of incurring substantial costs from unexpected incidents. It’s a layer of protection that covers the gap between the rental company’s own insurance and the excess fee, giving you peace of mind on your travels.
What does excess reduction mean?
Car rental basic CDW coverage is subject to an ‘excess’. If you have car hire excess waiver insurance, in the event of damage to or theft of the vehicle your financial liability is reduced to zero.
What’s the difference between car hire excess insurance and CDW/LDW?
CDW/LDW (Collision/Loss Damage Waiver) is typically the rental company’s waiver for vehicle damage, while car hire excess insurance reimburses the excess (deductible) you still have to pay if a claim happens.
In other words, CDW/LDW can reduce your liability for damage, but it often leaves an excess amount you’re responsible for. Excess insurance focuses on that remaining “you pay first” amount.
This is why many travelers pair them: you may accept the rental company’s CDW/LDW (or have it included), then use a third-party excess reimbursement policy like CarInsuRent to cover the excess up to $4,500.Is excess insurance for car hire necessary?
Excess insurance for car hire isn’t mandatory, but it’s highly recommended. It safeguards you from paying a high deductible if your rental car is damaged or stolen. Weigh the potential costs of paying a large excess against the daily rate of excess insurance. For many, the small price of the insurance offers invaluable peace of mind. Consider your personal risk tolerance and travel circumstances to decide if it’s a necessary addition to your car rental plan.
Choosing to go without could result in a significant financial burden in the event of an rental car accident or theft, whereas the insurance could cover those unexpected expenses. It’s all about securing your budget and comfort while on the road.Does my personal car insurance cover rental car excess/deductible?
Usually, your personal auto policy may cover damage to a rental car, but it often doesn’t eliminate the rental company excess (deductible) you can still be charged.
That’s the part that surprises many renters: even when your insurer pays for covered damage, the rental company can still hold you responsible for the excess amount stated in your rental agreement (plus certain fees, depending on the situation).
Car hire excess insurance is designed for this gap. With CarInsuRent, you can insure the excess you might otherwise pay out of pocket, with excess reimbursement up to $4,500 and options starting at $8.49/day or $129.90/year.Does my credit card cover the rental car excess?
Some credit cards include rental car cover, but it’s often limited and it may not cover the full excess/deductible amount the rental company can charge.
Credit card cover can have conditions (for example, paying for the rental on the card, declining the rental company’s cover, and following specific claim steps). Coverage limits and exclusions also vary widely by issuer and country.
If you want a clearer, purpose-built way to protect the excess you might be billed, a dedicated excess reimbursement policy like CarInsuRent is a practical option, with excess reimbursement up to $4,500 and daily/annual pricing starting at $8.49/day or $129.90/year).Is car hire excess insurance the same as the waiver the rental company sells?
No. The rental company’s waiver (often CDW/LDW/SCDW) changes your damage liability with the rental company, while car hire excess insurance reimburses the excess/deductible you may still be charged after an incident.
Rental company waivers can be convenient, but they can be expensive and still leave an excess. Excess insurance is typically bought separately and is meant to protect your budget if the rental company bills you for that excess.
CarInsuRent is positioned as a third-party alternative focused on excess reimbursement (up to $4,500) and broader value, with straightforward pricing ($8.49/day or $129.90/year).What does car hire excess insurance actually cover?
Car hire excess insurance covers the rental company excess (your deductible) that you can be billed after damage, theft, or an accident—up to your policy limit.
Practically, this means if the rental company charges you an excess after an incident, an excess reimbursement policy can pay you back for that amount (subject to policy terms). This is helpful because the excess can be a large unexpected cost.
CarInsuRent positions coverage around excess reimbursement up to $4,500, with daily and annual options ($8.49/day; $129.90/year) designed to make that protection affordable and easy to arrange.What is NOT covered by car hire excess insurance?
Car hire excess insurance is not the same as full rental car insurance – so it won’t cover every cost or every situation.
It is designed to reimburse the excess/deductible the rental company charges. That means items outside the excess charge itself (or situations excluded by your policy terms) may not be covered.
The safest approach is to treat excess insurance as “budget protection for the excess amount,” not a replacement for everything else. CarInsuRent’s value is clarity and practical reimbursement protection up to $4,500, so you’re not relying on assumptions when something happens.How much does car hire excess insurance cost vs the rental counter?
Rental counter waivers can be expensive day-by-day, while third-party excess insurance is often priced to be a lower-cost way to protect the excess/deductible.
CarInsuRent’s pricing starts at $8.49/day or $129.90/year, which makes it easier to budget versus paying a higher daily charge ($15+ per day) at the counter across an entire trip.
If you rent more than once a year, the annual option can make the cost even more predictable.Can I buy car hire excess insurance after I’ve already picked up the car?
In most cases, it’s best to buy before you pick up the vehicle so your cover is clearly in place for the full rental period.
Buying after pickup can create uncertainty about what incidents are considered “in period” and it can complicate documentation if something happens early in the rental.
CarInsuRent is positioned for quick online purchase and peace of mind – so arranging it before you arrive at the counter is the simplest way to avoid gaps.Is an annual car hire excess policy better than buying per trip?
If you rent cars multiple times per year, an annual policy can be the most cost-effective and simplest option.
Per-trip or per-day cover can work well for a one-off holiday. But if you rent regularly, paying once for the year can reduce admin and avoid repeat purchases before every trip.
CarInsuRent’s pricing makes the comparison straightforward: $129.90/year versus $8.49/day. If your rental days add up across the year, annual can quickly become the practical choice.Does car hire excess insurance cover all rental companies worldwide?
Excess insurance is designed to work alongside major rental companies because it reimburses you for the excess they charge – rather than replacing the rental company contract.
The key is that you’re covered for the excess/deductible amount you’re billed (subject to your policy terms) when renting internationally.
CarInsuRent positions itself for worldwide coverage and frequent travelers, with excess reimbursement up to $4,500. If you rent in multiple countries, having one consistent approach is a major benefit.Does car hire excess insurance cover additional drivers?
Excess insurance can cover additional drivers when they are listed on the rental agreement.
This is important because the rental company typically treats “authorized drivers” as part of the contract -and claims and excess charges flow through that contract.
CarInsuRent’s positioning is practical protection for real-world rentals: if you plan to share driving, ensure each driver is correctly listed on the rental agreement so your excess reimbursement protection (up to $4,500) remains aligned with the booking.How do I make a claim on car hire excess insurance (step-by-step)?
To claim successfully, treat it like a documentation exercise: confirm what happened, keep every rental-company document, and submit a complete claim file as soon as you can.
Step-by-step:
(1) Report the incident to the rental company and follow their process.
(2) Take photos of the vehicle (and any damage) and keep your rental agreement.
(3) Keep the damage report and any invoice/charge showing the excess/deductible taken by the rental company.
(4) Collect supporting documents the rental company provides (for example, repair estimate or final bill).
(5) Submit your claim with the full document set.
CarInsuRent’s policy is built around reimbursing the excess you’re billed (up to $4,500). The easiest way to avoid delays is to submit a complete file the first time, with clear evidence of the charge and supporting rental documents.
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