How to save money on car hire insurance

Car hire insurance is often offered when you're in a rush, and it can feel both confusing and expensive. But with a bit of preparation, you can often avoid overpaying. The key is understanding what's already included, what "excess" means, and what you’re still responsible for.

This guide explains how to save money on car hire insurance by comparing hire desk cover with standalone car hire excess insurance, and by checking if you're already covered through a credit card or travel insurance. Always read your rental agreement and any policy wording carefully before relying on cover.

Many rentals include basic protection, but it often comes with a high excess and exclusions. What’s included varies by provider, country and car type, so it’s important to check your booking documents for: 

• The excess amount

• What is and isn’t covered

• The deposit or pre-authorisation amount

• CDW/LDW (collision or loss damage waiver): These limit what you pay if the car is damaged or stolen, usually by applying an excess.

• Theft protection — Limits what you pay if the car is stolen, usually also with an excess.

 Even if insurance is included, it doesn’t mean you won’t have to pay anything if something goes wrong. Always check the small print.

• Excess — The amount you might have to pay if the car is damaged or stolen.

• Deposit / pre-authorisation — A sum held on your card during the rental, which reduces your available credit.

 Example: If the excess is £1,200 and the deposit is £1,500, the hire company might charge you first. You can then claim the amount back through a separate insurance policy, if it meets the policy terms.

Insurance sold at the rental desk is often priced per day and can add up quickly. It’s usually offered under time pressure and may use unfamiliar terms. While convenient, it’s worth comparing your options before you travel. 

What desk cover usually changes

•  Reduces the excess amount you could be charged

• May still exclude tyres, glass, underbody, roof or keys

 Always ask what is and isn’t included before accepting.

Standalone car hire excess insurance is bought separately from your rental. It may reimburse you for charges (like the excess) if you meet the policy conditions. 

You may need to: 

• Pay the rental company first

• Provide documents (e.g. rental agreement, damage report, invoices, photos)

 It doesn’t change the rental terms – you still have to follow them.

• Single-trip — Covers one hire period.

•     Annual — Covers multiple hires in a year.

 If you rent a car once, compare single-trip options. If you rent regularly, annual cover might save you more overall. Check policy limits and restrictions on trip length, vehicle type and destination.

Most surprises come from exclusions, not excess amounts. Always check both your rental agreement and insurance policy together. 

Common exclusions that can lead to unexpected costs 

Watch for exclusions around: 

• Tyres and wheels

• Glass and windscreens

• Underbody and roof damage

•   Keys or lockouts

• towing, admin fees or “loss of use”

Before buying extra cover, check what you already have. 

If you’re relying on credit card cover, check the conditions

 Credit card cover can be conditional. For example, you might need to pay with the card, meet eligibility rules, and follow documentation requirements. Countries, vehicle types and length of hire might be restricted. Check the terms.

 If you’re relying on travel insurance, check what it actually includes

 Some travel insurance policies include hire car excess cover but limits and exclusions vary. Find the relevant section and check the amount covered and what’s excluded.

Use this quick checklist: 

• Before you book — Check excess, deposit, what’s included, fuel policy.

• Pick-up — Photos/video all round; record existing damage in writing; check tyres/glass; note fuel.

• Return — Photos/video again; keep receipts; get confirmation if possible.

• Keep documents — Agreement, reports, emails, photos, receipts.

• What’s the excess amount?

• What’s excluded?

• How much deposit will be held, and for how long?

• Does my alternative cover meet the rental company’s requirements?

• What evidence would I need to claim?

If you want to save money on car hire insurance, focus on understanding the details. Know your excess, compare policies before you travel, and check for any exclusions. Then document everything clearly to help avoid disputes.

Explore your options for car hire excess insurance and speak to Everywhen if you’d like help understanding what cover might suit your trip.

The car hire excess insurance policy is provided and administered by our partner insurance4carhire. Everywhen act as an introducer for Insurance4carhire. 

 You can find out more about the insurance4carhire car excess insurance policy, or get a quote for car hire excess insurance on the insurance4carhire website. 

Consistent with our policy when giving comment and advice on a non-specific basis, we cannot assume legal responsibility for the accuracy of any particular statement. In the case of specific problems we recommend that professional advice be sought. 

 insurance4carhire is a trading name of Atlanta Insurance Intermediaries Limited. Authorised and Regulated by the Financial Conduct Authority under firm reference number 309599.