How Does Car Hire Excess Insurance Work?

9th June, 2020, in Global Hire Advice, Car Hire Help

When renting or hiring a car, if the vehicle gets stolen or damaged excess costs can sometimes really sting.

If you’re off on a road trip, be it a staycation or a holiday abroad, you want to relax and enjoy your time away rather than be worrying about the potential cost you might have to pay if you accidentally damage the rental car.

To put your mind at rest you can purchase car hire excess insurance which protects you from these costs.

If this is new to you, here is how it works.

What is car hire excess?

When hiring a car there’s a limit to how much you will have to pay to repair or replace the rental car should it get stolen or damaged, this is known as the ‘excess’. It’s the cost you’ll have to pay to the rental company if something happens to the hire car. This is also referred to as the ‘deductible’.

Excess costs can be pretty hefty and this is why car hire excess insurance is recommended.

What is car hire excess insurance?

This is an additional insurance policy that will cover you for the excess costs that you may be liable for if your rental car is stolen or damaged.

Excess insurance isn’t compulsory but it is highly recommended due to the significant excess costs some hire companies set.

How does it work?

It’s a lot simpler than it sounds. When you hire a car, the vehicle almost always comes with standard insurance which is known as collision damage waiver (CDW) but this will leave you liable for an excess fee.

If your hire car is stolen or damaged, you’ll be obligated to pay an excessive amount for its repair or replacement. If you don’t have any excess insurance in place, you’ll be accountable for the excess costs which can often be thousands.

Direct Car Hire Excess covers you up to £50,000 for any physical loss or damage. For example, if you reversed into a wall and damaged the back of the car, you will be bound to pay the excess for its repair which could be £1000. With a Direct Car Hire Excess insurance policy you would then claim that back for reimbursement using our simple online claim form.

Although this additional insurance policy isn’t essential, it’s advised to give you peace of mind knowing you’ll be protected for any excess charges.

Why choose Direct Car Hire Excess?

We provide cover whether you are travelling just once or multiple times. Our European excess car hire insurance keeps your protected when on the continent whilst a worldwide insurance car hire excess policy means you are covered anywhere on the globe. Our policies start at just 12p per day.


With Direct Car Hire Excess you’ll be looked after:

  • Cover’s all named drivers on the rental agreement
  • Towing costs
  • Administration and handling costs
  • Cover’s 21-84 years of age only
  • Comprehensive Cover
  • Simple online claims process
  • Key cover
  • Single and Multi-trip cover

And if your trip isn’t for work reasons, we also specialise in holiday car excess insurance meaning you can enjoy a trip away with friends, or family, with no need to worry about excessive cos being added to your car hire bill.


Find out more with our detailed car hire excess FAQ’s or contact our team today 

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