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The ultimate guide to car hire excess
What is car rental excess?
Car rental excess (also known as a deductible) is the maximum amount you are responsible for paying if your rental car is damaged or stolen while it’s in your care.
When you rent a vehicle, it automatically includes basic insurance — typically a Collision Damage Waiver (CDW). While CDW reduces your financial liability, it does not eliminate it completely. Instead, it limits how much the rental company can charge you in the event of damage.
That remaining amount is called the excess.
How Car Rental Excess Works
If the car is damaged, you may be required to pay up to the excess amount, regardless of who caused the incident (depending on the terms of your agreement).
For example:
If your excess is £1,000 and the repair costs £300, you may pay £300.
If the repair costs £2,000, you may pay up to the £1,000 excess limit.
Important to Know
The excess amount varies by vehicle type, location, and rental company.
The excess is often held on your credit card as a security deposit.
You can usually reduce or remove the excess by purchasing additional excess protection or standalone car hire excess insurance.
Key Takeaway
Car hire excess is the portion of damage costs you remain liable for, even with basic rental insurance. Understanding your excess before you travel helps you decide whether extra protection is worth it.
What you need to know about “excess”?
How much is the “excess”?
The excess amount you could be liable for varies from supplier to supplier, but can range anywhere from £500 to £3,000.
If you don’t want to be stuck with an ugly bill in case of an accident, it is better to search for a supplier with a low excess amount. That way, when you make a claim, you are only responsible for paying the first £500 of repair work, rather than the first £3,000.
Am I always liable for the full excess?
No, you will be liable only for the cost of repairs. So, if your excess is £2,000 but the damage cost is £300, you will only pay £300 and the rest of your deposit will be returned to you.
However, remember that some things are not covered at all by provided policies.
For example: Collision Damage Waiver does not cover the cost of damage to the wheels or tyres. So, if you puncture a tyre or crack a windscreen, the CDW will not help and you will have to cover the full cost of repair.
How can I avoid paying the excess?
The easiest way to ensure you won’t be stuck paying excess is to shop around for an alternative insurance policy that will provide zero excess or protect your excess. You may buy extra cover from:
- The site you book your rental through (most brokerages, including easyCar, offer an insurance package while booking)
- A third-party insurer
- The rental company
Top tip: You’ll probably find that your supplier will offer you extra coverage at the desk upon pick up, and although this coverage may include zero excess, it is likely to be very expensive. It is a better option to shop around for an insurance policy beforehand. Third-party insurance is also usually cheaper and covers more.
What is excess reimbursement insurance and how does it work?
As an alternative to buying an insurance package from a third-party or an expensive zero excess policy from the supplier, you can consider buying excess insurance, which covers the excess charges . It may also include extra cover for parts of the vehicle that are rarely covered by standard policies (e.g. windows and tyres).
If you are charged an excess fee by the rental company, you must first pay the rental company and then submit your claim to the excess insurer. As it works on a reimbursement basis, you’ll want to be sure to keep all your paperwork as evidence.
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