How does hire car excess insurance work?
How does a rental excess insurance policy work? What is covered and what isn't? Who pays for damage to the hire car and same for third party? What are the pros and cons with these type of policies? Anything else to bear in mind? What are the pitfalls, if any? Need to ensure least possible issues/problems when hiring.
Asked on 28 November 2025 by Allan Dattani
Answered by
Rhydian Jones
Rental excess insurance policies cover the excess you could become liable for, if a hire car is damaged or stolen. The hire company would charge you first while the excess insurer reimburses you afterwards.
Typically, the excess of damage or theft of the hire vehicle would be covered by this policy. Additionally, damage to the car itself, as well as towing and admin fees linked to an insured incident would also be covered.
Whereas mechanical failure, wear and tear, intentional damage, losses above policy limits or driving in breach of the rental agreement are not generally covered in the policy.
It’s important to remember, if there is damage to the hire car the rental company charges you up to their excess. This can be reimbursed by your insurer depending on your policy.
Rental excess insurance policy does offer broad coverage - especially for tyres, wheels, and glass. It also protects drivers from large and unexpected charges. Although, users need to pay the rental company first and claim later. While some policies limit countries, vehicle types, and rental durations.
Typically, the excess of damage or theft of the hire vehicle would be covered by this policy. Additionally, damage to the car itself, as well as towing and admin fees linked to an insured incident would also be covered.
Whereas mechanical failure, wear and tear, intentional damage, losses above policy limits or driving in breach of the rental agreement are not generally covered in the policy.
It’s important to remember, if there is damage to the hire car the rental company charges you up to their excess. This can be reimbursed by your insurer depending on your policy.
Rental excess insurance policy does offer broad coverage - especially for tyres, wheels, and glass. It also protects drivers from large and unexpected charges. Although, users need to pay the rental company first and claim later. While some policies limit countries, vehicle types, and rental durations.
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