Car Hire Insurance – The Basics
There is Car Hire Insurance and there is Car Hire Excess Insurance.
Car Hire Insurance goes by the term Collision Damage Waiver or CDW for short. It
is the standard insurance which covers the value of the hire car and is mandatorily
included by the car rental company when hiring a car. However, commonly items such
as tyres, windscreen and the under body are not covered under this insurance and
are the hirer’s responsibility if damage occurs to them; often the most "at-risk"
parts of the car. As with most insurances, this car hire insurance will usually
carry an ‘excess’ should a claim need to be made and most rental companies pass
that fee onto their hirers. This is known as the Car Rental Excess.
You will find the majority of rental companies then sell an excess reduction waiver
or excess waiver product in addition to the car hire price. The hirer pays a set
fee to reduce the ‘excess’ amount or better yet pay to waiver it altogether. However,
this is not usually the cheapest or fullest cover on the market.
Car Hire Excess Insurance
You are able to independently buy car hire excess insurance without paying over
the odds at the rental desk. This independent cover is usually better value, having
lower premiums for greater cover and you can get cover to include damage to the
tyres, windscreen and the under body. This insurance is on a reimbursement basis,
which means if damage occurred you would settle payment first with the rental company,
then claim back on the policy to reimburse you the costs paid out (up to the cover
Many insurances work on this principle so don’t be put off thinking you have to
pay first then claim back. Ask insurance providers to detail their claims procedure
to you before you buy so you know what will happen in the event you need to use
As with most things in life, you get what you pay for so it is important to compare
the cover offered and the claims process to ensure it really is good value for money.
At Questor, we are trying to give the consumer back the choice.
We hope you now know a little bit more about car hire insurance and car hire excess
Still not found what you were looking for? Please visit our FAQ's
page; our products page or why
not talk to someone on 0333 323 0090.