Compare Car Hire Excess Insurance Options

When you're using a rental vehicle, the last thing you want to worry about is being faced with an enormous bill if things go wrong. Car hire excess insurance offers cover for the out-of-pocket costs you face in the event of an incident.

To make sure you get the protection you need while paying an affordable price, we've created this guide comparing car hire excess insurance options. Find the right option to cover you when you're using a rental vehicle.

Who offers car hire excess insurance?

RentalCover

At RentalCover, we offer an alternative to car hire excess insurance you might purchase from a rental company. We offer $0 excess, meaning you can avoid paying anything out-of-pocket in the event of an incident.

Our policies are 50% cheaper than what you would pay at the rental desk^†. We also offer coverage that goes beyond what car rental companies offer, with cover for windscreens, headlights, tyres and more automatically included.

We also have no hidden fees and no claim fees. When you purchase RentalCover, you can cruise to the pick-up counter knowing you have comprehensive cover before you head out on your journey.

Car rental companies

For many customers, car rental companies might seem like the simplest choice for purchasing excess insurance for the length of your car rental period. When you go to the pick-up desk, you'll often be met with a hard upsell for excess insurance.

This might include a warning about the high costs that you'll face if you don't buy this policy. However, a car rental company often isn't the best choice for buying this insurance.

Car rental companies often rely on the fact that many customers won't research alternatives and will simply buy from them. This can mean you're not getting the best deal on this insurance.

Credit cards

Many customers can also get car hire excess insurance from their credit card. This can mean you don't need to purchase this insurance from your hire car company.

However, the coverage provided by your credit card can have significant exclusions. This means you may not have coverage in all the situations you require it. RentalCover offers more comprehensive car hire excess insurance than many credit cards.

Credit card insurance is also usually secondary insurance. This means that you must file a claim with other relevant insurance you hold before you are reimbursed. This can leave you out of pocket for a long period.

RentalCover works directly with your car rental company to settle your claim to maximise convenience. We pay out 98% of claims within 3 days, in any currency.

With wider coverage and a smoother process compared to credit cards, RentalCover offers a higher level of peace of mind.

Travel insurers

Some travel insurers also cover car hire excess. However, much like credit card insurance, this cover can be packed with exclusions.

Travel insurance cover is also often capped at a lower price than rental companies may charge. RentalCover offers a range of policies that mean you can pay $0 in the event of an accident or damage.

Going between your travel insurer and car rental company can also result in long out-of-pocket waiting periods. RentalCover works swiftly with your car rental company to offer a seamless claims process.

RentalCover vs car rental companies vs credit cards

 

This information is for illustration purposes only, exact coverage will depend on country of residence, country of travel, policy type selected, car rental company and vehicle type. Daily price for rental cars averaged across global suppliers’ prices quoted on 01/12/2025 based on full coverage policy with pick-up and drop-off from airports in capital cities.

How to choose the right car hire excess insurance for you

With so many options available for car hire excess insurance, here are some factors to consider so you can find the right coverage for you:

• Pricing: Consider how much you'll pay upfront for your excess insurance. Remember not to select your rental company's excess insurance without properly considering your other options.

• Coverage: How much are you covered for? With options like RentalCover offering cover up to $100,000, make sure you have the right level of protection if things go wrong.

• Exclusions: Many hire car excess insurance policies can come with inconvenient exclusions, meaning you're not covered for certain kinds of accidents or damage.

• Conditions: Look for a policy like RentalCover, offering convenient, straightforward conditions like coverage for authorised drivers for 30 days. Enjoy your hire car without worrying about confusing terms and conditions.

• Compatibility: Don't get to the rental desk and find out your coverage isn't compatible. RentalCover is compatible with thousands of rental car companies worldwide, making it a strong choice for your excess cover.

• Vehicle types: Many providers of car hire excess insurance can restrict the types of vehicles you're able to drive. Choose a provider with the flexibility you need for your journey.

Cover your rental vehicle with RentalCover

RentalCover stands out as an excellent choice for car hire excess insurance. We ensure you can avoid hard sells at the pick-up counter with policies that are 50% cheaper than the rental companies^†.

Our policies offer a significantly higher coverage amount than many alternatives, like credit card companies. When you choose RentalCover, you're on the road to true peace of mind on your journey.

Get a quote today and find the right car hire excess insurance for you.

Hear from our rental car insurance expert

"RentalCover is a strong choice for car hire excess cover. With a Total Coverage Amount of $100,000 and 98% of claims paid out within 3 days, you can get an effective and convenient policy for your rental vehicle. It also allows you to avoid hard sells while enjoying superior coverage than many car hire companies offer."

Frequently asked questions

What is car hire excess insurance?

Car hire excess insurance offers financial protection if things go wrong when driving a rental vehicle. Outside of the United States and Canada, the price of your car rental usually includes the cost of a Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW).

Your CDW/LDW reduces your liability if your rental car is damaged or stolen. It's similar to basic insurance, covering you for some damage to your rental vehicle. However, it typically comes with a high excess, meaning you can face significant out-of-pocket costs.

Car hire excess insurance provides protection for this high excess. You can buy this cover from your car rental company at the rental desk. However, you can also choose an alternative provider who may offer a better deal for you.

What does car hire excess insurance cover?

Car hire excess insurance covers the excess you're liable for if an incident occurs with your rental vehicle. Your excess is the out-of-pocket amount you're charged as part of your insurance.

Robust car hire excess insurance offered by RentalCover means you can pay nothing at all to cover your excess in the event of an incident. This allows you to enjoy your rental vehicle with peace of mind.

How does car hire excess insurance work?

The exact functioning of car hire excess insurance depends on who you have purchased the insurance from. If your excess cover comes from your car hire insurance provided by your rental company, you'll typically be covered for a certain amount of your excess. You'll have to pay out of pocket for any part of your excess you aren't covered for.

If your car hire excess insurance comes from a provider like RentalCover, the process looks different. You'll initially be charged by your rental company. You can then place an online claim with us.

Once your claim is approved, we pay out your claim. Payments occur within 3 days in 98% of cases, and can be paid out in any currency.

Do you need car hire excess insurance?

Car hire excess insurance is not a legal requirement. However, without it, you can face sky-high costs if things go wrong while using your vehicle. An affordably-priced policy from a provider like RentalCover will allow you to travel in comfort, knowing you have coverage if things go wrong.

Should I get car hire excess insurance from my car rental company?

Generally, it isn't hard to find a better deal on car hire excess insurance than what your rental company offers. Do your research and consider options like RentalCover to find out if you can get a better deal.

What happens if I damage a rental car?

If you damage a rental car, you should first follow the conditions of your car rental agreement. This involves informing the business you have hired the car from of the damage that occurred.

When you return your hire car, the damage will be assessed, and there will be a process by which your out-of-pocket costs are determined. If you have purchased protection from RentalCover, you can file a seamless online claim. Your claim will be swiftly processed, and you will be paid out in the currency of your choosing.

What is a Collision Damage Waiver (CDW)?

A Collision Damage Waiver (or Loss Damage Waiver) is a type of car insurance that reduces your liability for damages to a rental vehicle if it is damaged or stolen.

A CDW is a waiver that transfers the risk of financial loss for damages like towing and administrative fees to the rental company. CDWs often come with high excess costs.

Outside of the United States and Canada, CDWs are typically included in the basic cost of your car rental.

What is a Super Collision Damage Waiver (SCDW)?

A Super Collision Damage Waiver (SCDW) is a product often sold by car rental companies at the rental desk. It lowers your excess further than the basic Collision Damage Waiver does.

However, SCDWs typically do not reduce the price of excess to $0. You may also face additional fees related to towing, loss of use and more.

As an alternative, RentalCover policies provide equivalent protection up to 50% cheaper^†, with $0 to pay in the event of an accident.

Do car hire excess insurance policies offer optional extras?

Car hire excess insurance policies can come with optional extras. This is particularly true for car hire excess insurance policies offered by rental car companies. You may find policies offering extras such as car key cover, misfueling, towing and more.

At RentalCover, we don't offer optional extras. These exclusions and many more are automatically included within our policies. We keep things simple so you can enjoy your time on the road with a clear mind.