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.
Who offers car hire excess insurance?
RentalCover: cover that goes further
We're an alternative to buying excess insurance from your rental company. At RentalCover, we offer $0 excess, so you avoid paying anything out-of-pocket if something goes wrong.
Our protection products are 50% cheaper than what you'd pay at the rental desk¹. We also go further than most rental companies, automatically covering windscreens, headlights, tyres and more.
There are no hidden fees and no claim fees. When you buy through RentalCover, you can cruise to the pick-up counter fully covered.
Car rental companies: convenient, but rarely the best deal
For many customers, buying excess insurance from your car rental company can feel like the simplest choice. At the pick-up desk, you'll often meet a hard upsell for this cover.
They'll often warn you about the high costs of skipping their cover. But that doesn't mean their policy is your best option.
Car rental companies rely on the fact that most customers won't research alternatives and will simply buy from them. That's how they get away with charging more than you need to pay.
Credit cards: cover with more gaps than you'd expect
Many customers can also get car hire excess cover through their credit card, so they don't need to buy it from their hire car company.
However, credit card cover can come with significant exclusions, so you might not be covered when you actually need it. RentalCover offers more comprehensive cover than most credit cards.
Credit card cover is also usually secondary. This means you'll need to claim through your other relevant insurance first, before you're reimbursed. That can leave you out of pocket for a long period.
RentalCover works directly with your car rental company to settle your claim. We pay out 98% of claims within 3 days, in any currency.
With wider cover and a smoother process than credit cards, RentalCover offers greater peace of mind.
Travel insurers: cover, with a longer wait
Some travel insurers also cover car hire excess. However, like credit card cover, this can come packed with exclusions.
Travel insurance payouts are also often capped below what rental companies charge for excess. RentalCover offers policies that mean you can pay $0 if there's an accident or damage.
Going between your travel insurer and car rental company can also mean 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
| RentalCover.com | Rental Companies | Credit Cards | |
|---|---|---|---|
| Price per day | $20 | $70-$90 | N/A |
| Total coverage amount | $100,000 | Car value minus exclusions | Car value minus exclusions |
| Single vehicle accidents | Included | Included (high excess) | Included (high excess) |
| Multiple vehicle accidents | Included | Sometimes | Sometimes |
| Theft, fire & vandalism | Included | Sometimes | Sometimes |
| Towing, lockout & keys | Included | Extra cost | Extra cost |
| Windscreen & headlights | Included | Extra cost | Extra cost |
| Tyres & underbody | Included | Extra cost | Extra cost |
| Standard liability or excess | $0 | $4,000-$6,000 (usually fixed cost) | $4,000-$6,000 (usually fixed cost) |
| Accident related fees | All fees covered | Minimum $50-$100 | Certain fees often excluded from cover |
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 cover for you:
- Pricing: Consider how much you'll pay upfront for your insurance. Compare your options before defaulting to your rental company's excess insurance.
- Coverage: How much protection do you actually get? RentalCover covers up to $100,000, so check that you're not underinsured.
- Exclusions: Many car hire excess policies come with inconvenient exclusions, meaning you're not covered for certain kinds of accidents or damage.
- Conditions: Look for straightforward terms, like RentalCover's cover for authorised drivers for 30 days. Enjoy your hire car without confusing terms and conditions.
- Acceptance: Don't get to the rental desk and find your cover isn't recognised. RentalCover is accepted by thousands of rental car companies worldwide.
- Vehicle types: Many providers restrict the types of vehicles you can drive. Choose a provider with the flexibility you need for your journey.
Cover your rental vehicle with RentalCover
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 get an effective, convenient policy for your rental vehicle. It also lets you avoid hard sells while enjoying better cover than many car hire companies offer.”
Car hire excess insurance protects you financially if things go wrong while driving a rental vehicle. Outside the United States and Canada, the cost 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 damage to your rental vehicle. However, it typically comes with a high excess, meaning you can still face significant out-of-pocket costs.
Car hire excess insurance covers 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 that may offer a better deal.
Car hire excess insurance covers what 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.
With RentalCover, you pay nothing at all towards your excess if there's an incident. This lets you enjoy your rental vehicle with peace of mind.
How it works depends on who you bought it from. If your excess cover comes from your car hire company, you'll typically be covered for a set 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 excess cover comes from a provider like RentalCover, the process looks different. Your car rental company will charge you first. You can then file an online claim with us.
Once your claim is approved, we pay out within 3 days in 98% of cases, in the currency of your choice.
Car hire excess insurance isn't a legal requirement. However, without it, you can face steep costs if things go wrong while using your vehicle. An affordably-priced policy from a provider like RentalCover lets you travel with confidence, knowing you're covered if things go wrong.
It isn't hard to find a better deal on excess insurance than what your rental company offers. Do your research and consider options like RentalCover to see if you can get a better deal.
If you damage a rental car, start by telling your rental company about the damage. Follow the conditions of your rental agreement.
When you return your hire car, the rental company will assess the damage and work out what you owe. With RentalCover, you file your claim with us, we process it swiftly, and pay out in the currency of your choice.
A Collision Damage Waiver (or Loss Damage Waiver) is a type of car insurance that reduces your liability for damage to a rental vehicle if it's damaged or stolen.
A CDW transfers the risk of financial loss for damage, towing and administrative fees to the rental company. CDWs often come with high excess.
Outside the United States and Canada, CDWs are typically included in the basic cost of your rental.
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 a basic Collision Damage Waiver.
However, an SCDW typically doesn't reduce the price of excess to $0, and you may still face additional fees for towing or loss of use.
As an alternative, RentalCover policies provide equivalent cover for up to 50% cheaper¹, with $0 to pay if there's an accident.
This is often true for car hire excess policies offered by rental companies. You may find policies offering extras such as car key cover, misfuelling, towing and more.
At RentalCover, we don't offer optional extras. These extras and many others are automatically included in our policies. We keep things simple so you can enjoy your time on the road with a clear mind.