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What Is Car Hire Excess Insurance
What Is Car Hire Excess Insurance


What Is Car Hire Excess Insurance?

While renting cars in a different country, you would like to purchase an insurance policy to secure yourself against unexpected or unplanned expenses. Car hire excess insurance is an optional coverage that you may purchase while renting a car abroad. In case the car gets damaged or stolen, this coverage will cushion you against unwanted expenses. Therefore, excess insurance policies serve as additional coverage to protect you against some charges that might come up without warning.

At times, rental companies lack transparency. In the end, you may have to shell out more than you expected. ‘Hidden charges’ continue to be an issue for most people hiring cars. With these policies in place, you can tackle such overpriced and unexpected hidden expenses. Moreover, you cannot ward off the chances of accidents. Even a minor scratch can burn a hole in your pockets. As the name suggests, this type of policy would help you manage the ‘excess’ costs when you rent a vehicle.

Established insurance specialists like Surex comprehensively assist their clients in choosing the right package for their respective needs.

Advantages of Car Hire Excess Insurance

When you travel abroad, it’s natural to be wary of unexpected costs. Car rental companies are known to overcharge customers. At times, you have no other option than to rent cars from these companies. This is where a car hire excess insurance can help you neutralize the financial shock. Rather than shelling out the excess amount from your pocket, it makes sense to have a car hire excess insurance in place. These policies can help you cover up substantial amounts of unforeseen costs.

Depending on the premium you pay, the insurance policy would cover different costs. In general, most policies include expenses arising as a result of the following incidents.

  • Loss of keys
  • Undercarriage damage
  • Damages to windscreen and tires
  • Vandalism, fire, or theft
  • Cover for personal possessions

Do You Need A Car Hire Excess Insurance Package?

Purchasing a car hire excess insurance is optional. It is up to your discretion whether you would take an additional guard to deal with accidents involving the hired vehicle. In general, the vehicle you would rent should have a standard third-party insurance cover. This generally appears on the rental agreement. Besides, some rental companies also offer a damage waiver on the rental agreement. This would cover up some amount arising from the damage to the car.

However, it makes sense to completely secure yourself to unforeseen expenses, given that rental companies are often tough to negotiate with. Therefore, it pays to have such a protective cover in place.

How Does This Insurance Work?

Let’s consider a situation to help you understand the system with clarity. You rent a car that already comes with a standard collision damage waiver. In normal situations, if the car gets damaged or stolen, you would have to shell out the extra amount, before the rest of the expenses are covered by the rental company. This implies that if you had not purchased a car hire excess insurance, you would have to shell out hundreds of dollars. Particularly, if the hired car gets stolen, you can well imagine the financial burden you would face.

The reputed insurers cover up a significant amount for any physical damage to the car or loss. This is why most people prefer purchasing this type of cover for themselves. Besides, there’s no substitute for the mental peace you would enjoy, knowing that you won’t be landing up in such a miserable situation in case of car theft, damage, or accidents. Some of the best policies offer additional benefits for covering lost keys, damaged glass, roof, tyers, or towing.

What Else You Should Be Knowing?

Before you purchase a car hire excess insurance policy, here’s something interesting you should know.

  • The independent schemes work on the basis of reimbursements. Therefore, in case you end up damaging a rented car, you need to shell out the excess fees to the rental company.
  • Next, you need to reach out to the insurance provider and claim the amount back. For a seamless transaction, you need proper evidence and paperwork. Therefore, the rental company would ask for your credit card, provided it has got sufficient balance. This would work as a deposit when you collect the rented car.

Well, some unscrupulous rental companies do exist, which would try to convince you that the independent policies are not individually recognized. However, you must remember that it works in the form of reimbursement. Therefore, the rental company need not recognize the same. The insurer would cover their client and not the rental service provider.

This implies that a car hires excess insurance is not mandatory. To be on the safer side, most people opt for these policies. Therefore, before we wind up, here’s what you should keep in mind.

  • In general, you get some level of protection when you sign the rental agreement. However, it makes sense to opt for the excess cover.
  • The car hire excess cover will help you manage extra costs that the rental company might charge. This includes underbody damage, tire damage, or damage to any glass or windshield.
  • This policy is ideal if you are a frequent traveller. Some insurance companies also offer annual car hire excess insurance.


It’s easy to land up in a dilemma, wondering how much premium you should shell out. This, therefore, depends on the amount of coverage you think would suit your requirements. In general, insurance specialists guide their clients over the choice of policies. You may reach out to one of these service providers to get a comprehensive idea of its benefits.

A professional consultation can also help you make the right purchase decision. Besides, you may consider your driving skills and habits while assessing the cover you might require. Once you reach out to the insurance specialists, the experts would consider every aspect to mitigate your expenses.

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