Car hire insurance, explained simply.

What insurance is included in every car hire?

CDW (Collision Damage Waiver) and theft protection are included in virtually every airport car hire across Europe and most global markets. These are not optional extras — they come as part of the base rental price you see when you search.

However, CDW does not mean zero liability. It reduces your liability to an “excess” (deductible) — typically £500–£2,000 depending on the rental company, country, and car class. If the car is damaged or stolen, you pay up to that excess amount out of pocket.

Third-party liability insurance is also standard in most rentals, covering damage you cause to other vehicles, property, or people.

What is the excess (deductible)?

The excess is the maximum amount you’d pay out of pocket if the car is damaged or stolen. It ranges from around £500 for a small car to £2,000 or more for premium and luxury vehicles. This is the number the counter staff will focus on — and the number they’ll offer to reduce, for a daily fee.

The counter insurance upsell

At pickup, staff will offer to reduce your excess to zero. This product goes by various names: “Super CDW”, “full coverage”, “excess waiver”, or “zero excess”. The desk price is typically £8–£25 per day depending on the company and car class.

This is where rental companies make significant margin. On a week-long hire, desk insurance can add £56–£175 to the bill — often more than the base rental itself.

Third-party excess cover — the cheaper alternative

Third-party excess policies from providers like RentalCover.com typically cost £4–£8 per day. They reimburse you if you need to pay the excess — same protection, a fraction of the cost.

Buy before you arrive. You’ll need to decline the desk cover at pickup and pay the excess on your card if anything happens, then claim the amount back from the third-party provider.

Credit card car hire cover

Visa Signature, Mastercard World, and Amex Platinum cards often include CDW excess cover as a benefit. Check your specific card terms — coverage varies by card, country, and car class.

Some cards require you to decline the rental company’s CDW to activate the card cover, which can be tricky in some countries. Not all cards cover every vehicle type — vans, SUVs, and luxury cars are often excluded.

What to skip at the desk

Beyond the excess upsell, counter staff may offer several other products that are rarely worth buying:

• Personal Accident Insurance (PAI) — usually duplicated by your travel insurance policy.
• Personal Effects Coverage (PEC) — your home insurance or travel policy likely covers belongings already.
• Roadside assistance — check whether your breakdown cover extends abroad, or whether the rental already includes basic roadside help.

The smart approach

• Check your credit card’s car hire cover before you book.
• If no card cover, buy third-party excess cover (£4–£8/day) before you arrive.
• Decline all desk extras politely — staff expect it.
• Choose full-to-full fuel to avoid a separate fuel charge.
• Document the car condition at pickup with photos and video.