What Is Car Hire Excess Insurance?

By , 16 July 2018

Firstly, let’s get to the bottom of what the ‘excess’ part of the phrase means. When you get insurance for, well anything really, there will usually be an amount on your policy that covers the ‘excess’. Essentially, the excess is the first part of a claim that the customer is required to pay in the event of an accident, with the remaining amount to be covered by the insurer.

Now, in the car hire industry, UK and European car rental agreements will usually automatically include CDW (Collision Damage Waiver), theft and third-party liability. This means that if you end up damaging the vehicle, or causing damage to something else, you only need to pay out up to the excess limit, and the car hire companies own insurance will cover the remainder. However, the excess alone can still amount to £1,000 or more.

It is this excess that is covered by the standard ReduceMyExcess.co.uk policy.

How does it work in the US and Canada?

In the US and Canada, things work a little differently. Typically, the rental company only covers third party claims (through supplementary liability insurance) leaving (rather scarily) the entire value of the vehicle uninsured in the event of an accident. However, the good news is that we can cover this up to a cost of $50,000 if our ‘Worldwide including US & Canada’ option is selected.

There may be some of you out there that still don’t think it’s worthwhile taking out car hire excess insurance; but increasingly, customers have found that they are needlessly pressured into purchasing policies at the rental desk that they just don’t need. Taking out a separate car hire excess policy often provides the exact same cover at a fraction of the cost.

The bottom line is that car hire excess policies taken out directly from rental companies can cost upwards of £25 per day. Whereas an annual policy from us can cost as little as £37.65 per year, which let’s face it, is a phenomenal saving. Not only does if massively cut down on cost, but you can also benefit from more extensive cover, which – unlike some car hire waivers - protects the windscreen, all auto glass, tyres and undercarriage (and also offers misfuelling and key cover as standard).

Take a look at what we can offer you, and potentially save hundreds on your next holiday.
Our car hire excess insurance policies are competitively priced and designed to save you money, time and stress when it comes to your next car hire.