Standing at the car hire desk after a long flight, the last thing you want is a confusing, high-pressure sales pitch for extra insurance. Yet, that's often where the topic of 'excess' comes up, leaving many travellers flustered and paying over the odds for peace of mind.
This guide cuts through the noise. We'll explain exactly what car hire excess is, the crucial difference between policies sold at the rental desk and cheaper standalone options, and what to look for in a comprehensive policy for your 2026 travels. Let's make sure you're covered correctly, without breaking the bank.
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What Exactly is Car Hire Excess?
The excess is the first part of any insurance claim that you are liable to pay. If your hire car has an excess of £1,500 and you have an accident causing £2,000 of damage, you would have to pay the first £1,500 yourself.
Rental Desk vs. Standalone Policies
Rental companies sell their own excess waiver policies, often called Super Collision Damage Waiver (SCDW), at the desk. These are convenient but very expensive, often costing £15-£30 per day. A standalone policy, bought online from a specialist insurer before you travel, offers broader cover for a fraction of the price.
What a Good Policy Should Cover
Standard insurance included with car hire often excludes the most vulnerable parts of the car. A good standalone excess policy will cover damage to the tyres, windscreen, roof, and undercarriage, which are common areas for expensive repairs.
The Credit Card 'Hold'
Even with a standalone policy, the rental company will pre-authorise (hold) the full excess amount on your credit card as a security deposit. This is because if there is damage, you pay them first and then claim it back from your standalone insurer. Ensure your card has a sufficient limit for this hold.
The Claim Process Explained
If you need to make a claim on your standalone policy, the process is straightforward. You'll need to submit the rental agreement, the final invoice showing the damage charge, and a damage report from the rental company. Insurers typically process these claims quickly.
Know before you go
The golden rule for saving money is to purchase your standalone excess insurance policy at least 24 hours before you pick up the car. Last-minute purchases are more expensive, and buying at the desk is the costliest option of all.
Before you travel, find out the excess amount for your hire car and check that your credit card has a high enough limit to cover it. If the pre-authorisation fails, the rental company may refuse to give you the car or force you to buy their expensive policy.
When you show your standalone policy documents, be prepared for the rental agent to tell you it's not valid. This is a common sales tactic. Politely but firmly state that you are happy with your existing cover and do not require their additional insurance.
To ensure a smooth claim process, keep digital and physical copies of everything. This includes the rental agreement, check-out and check-in damage reports, and the final receipt from the rental company detailing any charges for damage.
