Do I Need Insurance for a Holiday Hire Car?
Hiring a car abroad - or even just for a UK staycation - should be a breeze. Until you're faced with a clipboard-wielding rental rep speaking at speed about waivers, excesses, exclusions and add-ons. You came for the beach, not the baffling insurance jargon.
So, do you may need extra insurance for a hire car? The short answer: probably. But not always in the way the hire company wants you to think.
What Insurance Is Already Included with a Hire Car?
Most car hire companies provide the bare minimum cover required by law in the country you're driving in. Typically, your rental will include:
- Third-party liability - covers damage or injury caused to others. This is usually compulsory.
- Collision Damage Waiver (CDW) - limits how much you'll pay if the hire car is damaged. But it often comes with a hefty excess.
- Theft protection - covers the cost if the vehicle is stolen. Again, usually with an excess.
So yes, technically, you're insured. But that doesn't mean you're protected from a bill. Not by a long shot.
Why You Might Still Need Additional Cover
The included insurance often comes with an excess that could run into the hundreds; or even thousands. And it won't usually cover:
- Tyres, wheels and windscreen
- Undercarriage damage (yes, that includes speed bump misjudgements)
- Lost keys or misfuelling
- Admin fees, downtime costs, or roadside recovery
Just imagine: you gently scuff an alloy whilst reversing into a scenic Tuscan vineyard. The rep notes it on return, and a week later, there's a charge on your card you weren't expecting; plus an admin fee for their trouble. That's the reality without top-up protection.
What Are Your Options for Extra Insurance?
- Buy the rental company's additional cover at the desk
Convenient, yes. But often expensive. They might offer to "waive" your excess entirely - for a price that's sometimes higher than the rental itself. - Take out independent excess insurance
This is a separate policy that covers what the rental agreement doesn't. Often far more affordable, and it usually includes tyres, windscreen, roof and underbody protection. - Annual hire car insurance
If you hire cars more than once a year; whether in the UK or abroad - this might work out better value over time.
What About Using Your Own Car Insurance?
Unfortunately, your regular car insurance typically doesn't extend to hired vehicles; especially outside of the UK. However, some premium credit cards include basic hire car insurance, so it's worth checking before you travel. Just make sure the cover meets the requirements of the country you're hiring in.
Tips to Keep Costs (and Stress) Down
- Take clear photos of the car from all angles before driving off
- Don't rush the inspection, point out any marks and get them logged
- Keep all documents and receipts until weeks after you return
- Refuel before returning if required - hire companies love to charge top whack for petrol
One family returned a car in perfect condition, only to be charged for a dent days later - despite never being shown proof. Their saving grace? A timestamped photo taken in the hotel car park on the day of return. Case closed.
Do You Actually Need It?
If you're risk-averse, travelling in a country with tricky roads, or simply don't fancy unexpected charges eating into your holiday fund; then yes, extra cover is worth considering. Not for peace of mind alone, but because hire companies are known for charging high fees for minor damage. You don't want to be arguing about scratches whilst trying to catch a flight home.