Learn everything you need to know about rental car insurance in the UK, including coverage options, excess insurance, and money-saving tips to avoid unnecessary costs when renting a vehicle.
Renting a car can be simple, but figuring out the right insurance can sometimes feel overwhelming. From Collision Damage Waivers (CDW) to liability insurance, knowing what you're covered for is essential. This guide will break down everything you need to know about motor insurance when renting a car in the UK, so you can hit the road with confidence.
Let's break down the key types of coverage you might encounter when renting a car:
It's key to make sure you check with your insurer as to what cover you have as each insurer is different and will have different coverage.
Many rental companies offer additional insurance to help you reduce your liability and cover areas that standard coverage doesn't protect:
If you want to avoid high excess fees but don't want to pay the rental company's extra fees, third-party providers also offer a car hire excess insurance policy, which can be a more affordable alternative.
While understanding your insurance options is essential, there are also ways to save on your insurance costs when renting a car:
Wondering if you really need to pay extra for car hire insurance? It depends on whether your motor insurance or credit card provides coverage. Let's break it down:
Personal Motor Insurance
If you already have motor insurance, it may extend to rental vehicles. However, double-check your policy to ensure you're covered for rental car damage, theft, and liability. Keep in mind the deductible limits, as you might still face out-of-pocket costs.
Credit Card Rental Car Insurance
Many major credit cards offer some level of rental car insurance when you use the card to pay for the rental. This coverage is usually secondary, meaning it kicks in after your motor insurance has been used. Make sure to verify the details with your card provider, especially if you're traveling abroad.
Be aware that some rental companies may not accept personal motor insurance or credit card coverage if it doesn't meet their requirements, such as covering third-party liability or loss of use.
Excess insurance is an optional coverage that helps reduce out-of-pocket costs if something happens to the rental vehicle. Rental companies often charge high excess fees—sometimes over £1,000—for minor damages. With excess cover, you can significantly reduce or eliminate these fees, providing peace of mind.
If your motor insurance or credit card doesn't cover rental cars, obtaining insurance as part of the car rental agreement is an option. However, it's often more expensive than standalone policies. Rental companies typically offer Collision Damage Waiver (CDW), liability insurance, and Personal Accident Insurance (PAI), which provide comprehensive protection during your rental.
Be aware that some rental companies may not accept your personal motor insurance or credit card coverage if it doesn't meet their requirements, such as covering third-party liability or loss of use. This is especially common when renting abroad or when renting high-end or exotic vehicles. In these cases, the rental company may require you to purchase their own insurance options to ensure adequate coverage.
For short-term rentals, explore our car rental options, which include insurance as standard. Alternatively, for longer-term flexibility, see our car subscription plans, where you can choose a plan with or without insurance, depending on your needs.
Do I Need Rental Car Insurance if I Have Personal Motor Insurance?
Your personal motor insurance may cover hire cars, but it's essential to check your policy details. You might still be liable for out-of-pocket expenses depending on your coverage limits and deductibles.
Does My Credit Card Provide Rental Car Insurance?
Many credit cards offer rental car insurance as a secondary coverage. However, always verify the specific details with your card issuer to ensure that you're fully covered.
How does Excess Insurance work and Do I Need It?
Excess insurance helps lower or eliminate the costs you'll pay if the rental car is damaged or stolen. It's especially useful when renting abroad, where excess fees can be very high.
What Insurance Should I Get When Renting a Car Abroad?
Most personal motor insurance policies don't cover rentals abroad. If you're traveling, consider purchasing international rental car insurance from a third-party provider or the rental company.
Can I Rely on Just My Credit Card Insurance?
Credit card insurance usually covers damage or theft of the rental vehicle but may not include liability or personal accident insurance. It's important to review your card's policy to understand what's covered.
