Within most of Europe – and certainly within the European Union – it’s required that your car-rental fee include basic liability coverage. That’s the protection you need against all but damage to the car or any harm you cause to someone who’s outside the car.

Is Rental Car Insurance Coverage A Good Idea?

Nevertheless, if your holiday rental car is damaged or stolen, you are usually liable to pay an Excess, or Collision Damage charge.

No one likes to imagine being in an accident, and it’s tempting to assume that, as been a good driver, you won’t have one. But it’s not just your own driving you have to worry about with car hire. Finding your wing mirror is missing after parking your car outside your hotel, or sizable dent in the passenger-side front bumper are pretty common.

You should always have comprehensive insurance when renting abroad. But rental insurance is tricky as there are different rules for different countries.

To begin with, most rental rates in Europe include Collision damage waiver (CDW). This is an insurance that provides cover in the event of damage or theft of the vehicle so that you won’t have to pay the full cost of replacing a stolen or damaged vehicle. CDW in Europe carries an excess (also known as deductible) of around €1,000 – €2,000 even if the damage wasn’t your fault. CDW doesn’t cover your tires, windows, roof, undercarriage, or interior.

Should You Buy Extra Rental Car Insurance At The Counter?

Car hire 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, Super Cover and Excess Protection.

What are the benefits of buying insurance from the rental company? It protects you from significant out-of-pocket expenses associated with loss or damage to the vehicle, including theft. But it’s expensive. Rental car insurance costs vary by company and coverage. You may pay €15 to €25 a day. It’s not insurance, in the technical sense, that rental companies offer. Rental companies are not licensed insurance agents in every state. Instead, they offer a protection package.

If you decide to purchase insurance through the rental car company, be sure to read the fine print. Every car rental agreement can be different, and you should be aware of that when renting a car. For example, the agreement might not cover the excess related to damage to tires, windows, roof, undercarriage, or interior.

Third-Party Car Rental Insurance

You can choose to buy Excess Reimbursement Insurance policy from a third-party insurance company. 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.  to cover your rental, so it’s insured more comprehensively. You can do this online when you book the car, online separately from your booking, or a few moments before you arrive to pick up your car.

Independent rental insurance companies offer annual insurance policies much cheaper than rental agencies. With annual policies from $79.90, 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.