The final part of your travel day is probably making your way to the rental desk and picking up your keys. After confirming your booking, the person behind the desk asks you one last question:
“Would you like to purchase our excess waiver?”
When they ask this you might not understand exactly what it is they’re asking, whether you should pay for the company’s own protection or whether you should use an independent car hire excess insurance policy arranged before collecting the hire car.
Both excess waivers offered at the desk and car hire excess insurance are designed to help reduce your financial risk if your hire car is damaged or stolen, but they work in very different ways. Understanding those differences before you reach the rental desk can help you make a confident decision and choose cover that’s right for you.
This guide will explain:
Why You’re Offered Extra Protection at the Rental Desk
Many people are surprised when they’re offered additional protection after they’ve already booked and paid for their hire car.
Although your rental agreement usually includes a basic level of insurance, it doesn’t remove the excess you’re responsible for if the vehicle is damaged or stolen. That excess could range from hundreds to even thousands of pounds and depends on the vehicle, destination and rental company. To reduce financial liability, many rental companies offer an optional excess waiver when you collect your vehicle.
For people who haven’t looked into their options beforehand, it can feel like a no-brainer – but it is worth understanding everything that’s available to you. Taking the time to compare before you reach the desk means you can make an informed decision rather than one that’s made under pressure at the desk.
What Is a Rental Company Excess Waiver?
An excess waiver that is sold by the rental company is an optional product sold by the car hire company. Its purpose is to reduce, or in some cases entirely remove, the excess you would otherwise have to pay if the hire vehicle is damaged or stolen during your rental.
Rental company excess waivers are typically:
For some, the convenience of these waivers are appealing because the reduction in excess is handled by the company you are hiring with rather than through a separate insurer. That being said, it’s important to read exactly what’s included as some waivers might not protect every part of the vehicle.
Why Some People Choose Independent Car Hire Excess Insurance
Rather than waiting until they reach the rental desk, some people choose to arrange their protection before they leave. Independent car hire excess insurance doesn’t replace basic insurance, instead it provides a way of reclaiming eligible excess charges if you’re asked to pay them following accidental damage or theft.
End to end, the process will work something like this:
1. Decline the rental company’s optional excess waiver.
2. If the rental company later charges you an eligible excess following an insured incident, your credit card will be charged that amount.
3. You can then submit a claim to your car hire excess insurance provider for reimbursement.
The benefit of this is that it gives you time to compare providers, prices and levels of cover before travelling rather than making a decision at the desk.
A separate policy like the ones we offer at ReduceMyExcess also include protection for areas of the vehicle not always included under excess waivers, such as:
Make sure to always read the policy wording carefully so you understand what’s covered, the limits that apply and any exclusions.
Why Arrange Cover Before You Travel
A big advantage of organising your protection in advance is that you are able to make the decision in your own time, on your own terms; you have the opportunity to:
Rental Company Excess Waivers vs Car Hire Excess Insurance
Although both options are designed to reduce the financial impact of damage or theft, they work in different ways. Understanding how each option works can help you compare more than just the headline price.
| Excess Waivers from the Rental Desk | ReduceMyExcess Car Hire Excess Insurance |
| Purchased when you collect your hire car | Purchased before you travel |
| Usually charged daily | Available as single-trip or annual cover |
| Reduces or removes your excess with the rental company | Reimburses eligible excess charges after you’ve paid the rental company |
| Applies only to that specific rental | Annual policies can cover multiple rental throughout the year |
| Cover varies between rental company | Can include protection for tyres, wheels, windscreen, roof and underbody, subject to policy wording |
| Convenient as everything stays with the rental company | Opportunity to compare cover before you travel |
What Option is Right For You?
There’s not a one-size-fits-all answer when it comes to protecting yourself against hire car excess charges. The right choice depends on how you travel and your budget.
An Excess Waiver From The Desk May Suit You If…
Independent Car Hire Excess Insurance May Suit You If…
Whichever option you choose, taking a few minutes to compare your choices before you travel can help you avoid unnecessary costs and feel more confident when collecting your hire car.
Why Choose ReduceMyExcess?
At ReduceMyExcess we’ve helped thousands of people protect their wallet from high excess charges.
As a Which? Best Buy, rated Excellent on Trustpilot and a Feefo Platinum Trusted Service Award winner, we’re committed to making car hire excess insurance simple to arrange and straightforward to understand.
Our policies include:
FAQs
This depends on your circumstances such as how often you hire cars and the level of financial protection you’re looking for.
Yes as they are optional, rather than a legal requirement.
If your hire car is damaged, the rental company will assess the damage and determine whether you’re responsible for paying an excess under the rental agreement. With an independent car hire excess insurance policy, your credit card will be charged for the damage. You’ll then submit a reimbursement claim.
Anna’s top tip
If there’s one piece of advice I’d give, it’s this: don’t let the rental desk be the first time you think about excess cover. Spend a few minutes comparing your options before you travel when you have time to read policy wordings properly and find something that works well for you and your trip.
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