Car hire excess insurance, explained

The €20-a-day trick at the rental desk — and how to skip it.

When you collect the car, they'll offer to "waive your excess" for €15–25 a day. A standalone excess policy does the same job for a fraction of the price — and covers the tyres, glass and underbody the desk quietly leaves out.

A 14-day rental · what the excess cover costs

Rental desk "excess waiver"~€20/day × 14 days€280
Standalone daily policy~€3/day, tyres & glass included~€45
Standalone annual policyunlimited trips for a year~£79
Illustrative figures. Same protection against the excess — the desk version just costs several times more.

Why the gap is so big

You're not buying more cover at the desk. You're paying more for less.

The rental company's waiver is priced per day and sold under time pressure. A standalone policy is the same idea — it reimburses the excess if the car's damaged or stolen — bought ahead, at insurance prices, and it usually covers the bits the desk excludes.

~€15–25

Per day, at the desk

The counter "excess waiver" / "super cover", added when you're tired and keen to get going.

~€3

Per day, standalone

A single-trip policy bought before you travel — often a fifth of the desk price.

~£79

Per year, annual

Rent more than a couple of times a year? One annual policy covers every trip.

What actually differs

No cover vs desk waiver vs standalone.

 Decline everythingRental-desk waiverStandalone excess policy
Typical cost (2 weeks)€0 — but you carry the full excess~€200–350~€45, or ~£79 a year
Covers the excess if damaged/stolenNoYesYes (reimbursed)
Tyres, glass, underbody, roofNoOften excludedUsually included
Bought under pressure at the deskYesNo — sorted before you travel
Rental company can refuse itIt's theirsNo — it's independent, they needn't approve it

Sort the excess before you fly — not at the desk.

Compare standalone car-hire excess cover: per-trip for one holiday, or an annual policy if you rent more than twice a year. Most residencies covered, including the EU.

Common questions

Is it worth it? Is it even allowed?

Is excess insurance compulsory?

No. You can decline all cover and carry the excess yourself, buy the rental desk's waiver, or buy a standalone policy. It's optional — which is exactly why the desk can't refuse a standalone policy: they don't need to see or approve it.

What is "the excess", exactly?

The amount you're liable for if the car is damaged or stolen — often €800–€2,500, blocked on your card at pickup. Excess insurance reimburses you for that if you have to pay it.

Does standalone cover the tyres and windscreen?

Usually yes — tyres, glass, underbody and roof are commonly included, and these are exactly the parts the rental desk's own waiver often excludes. Always check the specific policy wording.

Single-trip or annual?

One holiday a year → a single-trip policy is cheapest. Two or more rentals a year → an annual policy almost always wins, covering every trip for one flat price.

How does the claim work?

If you're charged for damage, you pay the rental company, then claim the amount back from your excess insurer with the paperwork. You're not arguing with the rental desk about cover — you settle, then get reimbursed.

Heads up: the "compare cover" links are partner links — we may earn a commission if you buy, at no extra cost to you. This page is general information, not insurance advice or a personal recommendation; always read the policy wording, cover limits and exclusions before you buy, and check the provider is authorised to cover residents of your country.