Car Hire Excess Insurance: Is It Worth Buying?

Published 22 October 2026 | Updated 22 October 2026 by Kate Acaster

Car hire excess insurance is a separate policy that repays the excess you owe if a rental car is damaged or stolen. Buy it from an independent insurer before you travel and it usually costs far less than the rental desk’s own waiver. Which? found an average of £23 for a week’s cover direct from insurers, against £177 at the desk, for a July 2024 rental in Malaga. The catch is that you pay the excess first and claim it back.

What the excess is, and what your rental already includes

Third-party insurance is included in a European rental by law, Which? says, and most rentals include a collision damage waiver too. The waiver limits what you pay if the car is damaged, but it comes with an excess. Which? puts that excess at £200 to £2,500, and you pay up to that amount towards repairs even when the accident wasn’t your fault. Which?’s 2026 guide quotes repair charges of about €350 for a scratched door, €360 for a puncture and up to €900 for a windscreen.

Your rental agreement shows the figure before you drive away.

One exception: Which? says Sixt charges extra for basic collision damage waiver. With no waiver there’s no excess to reimburse, so a standard excess policy won’t apply. Which? says you could be liable for the car’s full value.

Your four options compared

The Which? weekly prices are averages for a 45-year-old driver hiring in Malaga in July 2024, with prices checked in May 2024. Your quote will differ with the destination, season and your age, and policy limits and exclusions vary.

What rental desk cover leaves out

Which? scored six desk waivers against 19 independent policies in 2024. The desk products scored between 41% and 55%. Of the independent policies, more than half of those sold direct by insurers scored 70% or higher. Examples of what desk cover misses:

• Budget and Avis waivers don’t cover underbody damage, misfuelling or lost and stolen keys.
• Goldcar’s doesn’t cover misfuelling, keys or personal belongings, and sells tyre, mirror and lock cover as an extra.

Hertz’s EU rental terms give one example of a waiver’s limits. Its collision damage waiver covers tyre or window damage from road debris. It doesn’t cover:

• Undercarriage damage from poor roads, driving on beaches or through floods.
• Wrong fuel.
• Wheel rims damaged by driving on a flat tyre.
• Damage from locking or losing keys.

Hertz’s SuperCover removes the excess and admin charges. A cheaper Glass and Tyres option removes it for windows and tyres only. Hertz also says its waivers are void if you act in a way you know or should know is likely to cause harm, such as hitting a low overhead object. Terms differ by company, so read your own rental’s.

Does travel insurance cover hire car excess?

Usually not. Finder says a standard UK travel policy won’t typically cover you for using a rental abroad. Some insurers sell the cover as an extra. Staysure’s optional car hire excess waiver covers an excess of up to £4,000. Sub-limits apply: £500 per claim for keys, £1,000 for misfuelling (one claim per policy period) and £1,000 per claim for roadside and towing. Our Staysure review covers the rest of that policy.

Sort the cover before you fly. It’s cheaper than buying on the day, Which? says.

The one case for buying at the desk: the deposit

Which? says the only advantage of desk cover is avoiding a large deposit or card pre-authorisation. Deposits are held, not charged, but they reduce the credit available on your card. Europcar’s deposit policy gives one example. If you’ve prepaid, the deposit is £250 for UK rentals and €300 for Germany. Buying protection that cuts the damage excess to zero lowers them to £100 and €100. Check the hold on your own booking against your card’s available credit.

How to claim if the car is damaged

1. Photograph the car at pick-up and make sure every existing mark is on the damage sheet.
2. At the desk, check the rental includes a collision damage waiver (at Sixt, basic cover costs extra). Then say no to the extra cover and say you understand you’ll pay the excess if you damage the car. Which? warns that showing your policy can invite a hard sell, because agents can pick holes in it.
3. If there’s damage, pay the excess to the rental company and keep every document: the rental agreement, damage report, repair invoice and receipt.
4. Send the paperwork to your insurer and claim the money back. Check your policy for its deadline.

“The agent will have your paperwork open and a pen ready. You say no once, and say you’ll pay the excess if there’s damage. That’s where the saving happens: the independent policy costs a fraction of the desk waiver, which is why I’d read the terms at home, not at the counter, with the policy already bought.”

Kate Acaster, Chief Editor, Flight Tribe

What to check before you buy a policy

• The policy limit should be higher than the excess on your rental agreement.
• List every driver. Finder says insurers can refuse claims where the driver wasn’t named on the rental agreement.
• Look at the exclusions. Finder lists reckless driving, drink or drugs, mechanical failure and wear and tear, and some policies exclude vehicles over 10 years old.
• Check it covers tyres, windscreen, underbody, mirrors, locks and roof, the items Which? found in its best policies.
• Look for the extras you might need: keys, misfuelling, towing, personal belongings and drop-off charges.

This is general information, not financial advice. Sources are linked above so you can check the detail.

More on hiring a car abroad

• Hiring a car in Spain? See what a week costs in Malaga.
• Planning a Greek island road trip? Read is Crete expensive and is Kefalonia expensive.
• Thinking about other insurance extras? Read is Ryanair travel insurance worth it.

Car Hire Excess Insurance FAQs

Is car hire excess insurance worth it?

Usually, if you’d otherwise face an excess of hundreds or thousands of pounds. Which? found independent policies cost far less than desk cover and often cover more, but you pay up front and claim it back.

What is the difference between desk cover and car hire excess insurance?

Desk cover is sold by the rental company and cuts the excess, often to zero, so you pay little or nothing if the car is damaged. Independent cover comes from an insurer and repays you after you’ve paid the bill.

Does travel insurance cover car hire excess?

Usually not. Standard policies typically don’t cover rental cars, though some insurers sell it as an add-on, such as Staysure’s, which pays up to £4,000.

How much is a typical car hire excess?

Which? says £200 to £2,500. The figure is on your rental agreement and varies by company and car.

Should I buy car hire excess insurance before I travel?

Yes. Which? says buying in advance is cheaper than buying on the day, and you avoid a hard sell at the desk.

Will the rental company still take a deposit?

Yes, if you decline its cover. The deposit is a hold on your card, not a charge, and it can be larger than if you’d bought the desk’s protection. Check the amount before you collect the car.

Kate Acaster

Kate Acaster is Chief Editor at Flight Tribe. She writes about practical travel planning, budget airlines, baggage rules, city breaks, beach holidays and good hotels that do not cost daft money.

Kate has travelled through Europe, South America and beyond, usually with a notebook, a half-formed plan and a strong opinion on airport snacks. At Flight Tribe, her work focuses on helping UK travellers understand what is included, what costs extra, and whether a trip is worth booking at the price shown.

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