Can Car Hire Excess Insurance Be Refused By The Car Hire Company?

One of the concerns we hear from customers is whether or not the car hire company will be ok with a car hire excess insurance policy bought through an independent insurer.

The short answer is that car hire excess insurance covers you and not the car and therefore the car hire company does not need to see it, or even know that you have it!

They cannot ‘refuse’ it as it has nothing to do with them.

When we talk about car hire insurance we describe the three parts of insurance that you need to have in place before you drive away your rental vehicle.

Collision Damage Waiver (CDW) – This covers damage to the car you are driving – except for any excess liability and excluded areas such as the glass, wheels, roof and underbody.

Theft Waiver – This covers the cost of the car if it is stolen except for any excess. This excess can be the same as the CDW excess or sometimes higher.

Third Party – Known as Liability Insurance in the Americas, this covers you for the cost of damage to other people’s vehicles and property and for injuries to other people.

If you have these listed as part of your car hire insurance then a policy bought through MoneyMaxim will cover your excess, those excluded parts listed above as well as other areas such as towing and misfuelling.

Why does excess insurance not cover the car?

Excess insurance works on a reimbursement basis. It does not remove your excess, nor does it mean you won’t have to pay if you chip a windscreen or get a puncture.

If you have an accident in your car and cause damage, the CDW kicks in and you will only be liable for your excess. In the event of an accident or incident with your car, you will need to pay for any excess or damage to areas that are excluded from your CDW and then put in a claim with your excess insurer to seek reimbursement.

This is why it covers you and not the car.

It is worth mentioning here that your insurance with the rental company will cover you as long as you are driving within the terms and conditions of your hire. Should you, for example, have an accident whilst driving under the influence of alcohol then you will likely face the entire repairs bill. Your excess insurance will also not cover you in this scenario.

When could the car hire company insist that you buy their own insurance?

The car rental company can only insist you take their additional insurance if there is something in their terms and conditions which makes it compulsory.

So, as an example, if you are a younger driver you may not be able to hire without opting for the company’s premium package which includes a higher level of cover. A rental firm may also have a policy that luxury cars can only be hired providing their in-house top up cover is purchased.

If you get to the desk and they say you need to buy their insurance, ask them why. If necessary, request to see where it says in your contract that you need to purchase their extra insurance. It rarely gets to that stage however, a firm ‘ No thank you’ is usually enough!

Compare car hire excess insurance with MoneyMaxim