Most people spend time comparing car hire deals but did you know you could be saving even more by buying car hire excess insurance in advance?
When travellers arrive to collect their rental car, they're often faced with a confusing question:
"Would you like to pay extra for our insurance?"
At that point, many travellers aren't sure what they're already covered for, what "excess" means, or whether they actually need the additional cover being offered.
This guide explains car hire excess insurance in plain English and how to compare quotes through MoneyMaxim.
First things first – what is "excess"?
When you hire a car, it will usually come with basic insurance included. This often includes Collision Damage Waiver (CDW) and theft protection, which help protect you from the full cost of damage or theft. However, these policies usually come with an
excess – the amount you must contribute if something goes wrong.
Think of it like this:
• The repair bill is £2,000
• Your rental agreement has a £1,000 excess
• The hire company pays the remaining amount
•
You pay the first £1,000
Depending on the vehicle, destination and hire company, excess amounts can range from around £500 to over £3,000.
Why do people buy excess insurance?
Even a minor incident can result in a large bill and you are likely to be responsible for more than just your excess.
A scratched panel, damaged alloy wheel, cracked windscreen or punctured tyre could leave you facing a charge from the rental company when you return the vehicle. Many of these items are common exclusions from the Collision Damage Waiver.
Car hire excess insurance helps protect you from those costs by reimbursing the excess and certain other areas you may be liable for.
In simple terms:
Without excess insurance: You pay the bill.
With excess insurance: You can submit a claim to your excess insurer to get your money back if you are charged.
What does car hire excess insurance usually cover?
Policies vary, but many include cover for:
✅ Excess charges
✅ Windscreens and glass
✅ Tyres and wheels
✅ Roof and underbody damage
✅ Lost or damaged keys
✅ Towing and recovery costs
These are exactly the areas where many standard rental agreements provide limited cover or no cover at all.
How does a claim work?
The process is straightforward.
1. Damage occurs during your rental.
2. The car hire company charges you according to the rental agreement.
3. You keep all paperwork, receipts and supporting documents.
4. You submit a claim to your excess insurer.
5. If the claim is accepted, you receive reimbursement.
As the cover works on a reimbursement basis, you'll still normally need a credit card when collecting your vehicle. The rental company may place a temporary pre-authorisation on it.
What about the insurance sold at the rental desk?
Rental companies frequently offer their own excess waiver products when you collect your vehicle.
For some travellers, these may be a suitable option. However, they are often a lot more expensive than arranging independent excess insurance before you travel. Add-on insurance at the desk can cost around €15-20 per day. Independent excess reimbursement policies can provide a greater range of cover including for items such as tyres, glass and lost keys and can start from around £2 per day.
By comparing your options through the MoneyMaxim service you can look at your options, understand what's included and avoid making a rushed decision. It also means you may not have to buy additional more expensive cover at the car hire desk.
Is car hire excess insurance worth it?
Ask yourself one question:
Could you comfortably afford an unexpected £1,000 to £3,000 credit card bill if your hire car was damaged?
If the answer is no, excess insurance may be worth considering.
Many travellers never need to claim. But for relatively little cost, excess insurance can help remove the worry of unexpected charges and let you get on with enjoying your trip.
Before You Travel: A Quick Checklist
✓ Check what insurance is already included with your rental.
✓ Find out how much excess applies.
✓ Read the exclusions carefully.
✓ Compare excess insurance options before you travel.
✓ Take photos of the vehicle when you collect and return it.
✓ Keep all paperwork in case you need to claim.
Let MoneyMaxim Do the Hard Work
At MoneyMaxim, we
compare a range of car hire excess insurance providers to help you find cover that suits your trip and budget.
Whether you're planning a weekend break in Europe, a family holiday overseas or multiple trips throughout the year, comparing your options could help you save money and travel with confidence.
