Time and again, our research finds the cover offered by car hire companies is riddled with holes, and costs up to £183 more per week than specialist insurance bought online.
Our latest research has again found that online specialists offer the best cover, at the best price
We’ve analysed the policies of all the major providers, including brokers such as Booking.com, Holiday Extras and Zest Car Rental, to tell you which hire excess insurance policy is best.
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When you hire a car in Europe, you don't have to buy any additional insurance – basic insurance is always included in the rental. But that insurance is subject to an ‘excess’, so if the car is damaged you'll need to pay a contribution of up to £2,500 towards repair costs, regardless of who's at fault.
The cost of car hire repairs has increased in recent years. Data from Zest Car Rental shows that holidaymakers could be charged hundreds of euros for even minor issues. For example, car hire companies typically charge around €250 for a scratched door, €300 for a puncture, and as much as €750 for a replacement windscreen.
You could reduce your excess to zero with the car hire provider, but that’s expensive. Instead we recommend an Excess Reimbursement Insurance (ERI) policy, which allows you to claim the excess back from your insurance provider. You can buy a daily or annual policy.
Tyres (T), windscreen (W), underbody (U), mirrors (M), locks (L), roof (R) cover
USING THE TABLE [a] Available as an optional extra [b] Company did not confirm value. Misfuelling Costs associated with using wrong fuel. Key cover Costs associated with lost/stolen keys. Towing Costs for tow truck following an accident or mechanical breakdown. Curtailment Provides a benefit if hire agreement cut short. Drop off charges Cost of returning car to rental office if customer is unable to. Policy score An assessment of quality, comparing 17 categories from each policy to create an overall score. Based on provider's standard European cover. All prices checked in May 2024 and subject to change.
You have three options when it comes to buying car hire insurance to cover excess:
Most people book their hire cars via a broker such as Expedia or Holiday Extras. When you select a car, you’ll often be offered a price with ‘no extra insurance’ or with ‘full protection insurance’. If you select the full insurance, you’re buying an ERI policy just like the ones sold direct by the insurance companies. They cost around £38 on average.
We analysed the policies sold by six of the biggest brokers and found that they vary in quality – see below. Booking/Rentalcars’ policy received the best policy score, but it’s not the best broker to rent a car with .
If you're renting a car with Which? Recommended Provider, Zest Car Rental
, you’ll find that basic ERI is included, but if you spend a bit extra on its top-up insurance, you’ll have one of the most comprehensive policies around.
The only reason not to take the Zest top-up insurance is if you plan to hire more than one car a year – an annual policy from one of the specialist insurers above is cheaper in this case.
Tyres (T), windscreen (W), underbody (U), mirrors (M), locks (L), roof (R) cover
USING THE TABLE [a] Available as an optional extra [b] Company did not confirm value. Misfuelling Costs associated with using wrong fuel. Key cover Costs associated with lost/stolen keys. Towing Costs for tow truck following an accident or mechanical breakdown. Curtailment Provides a benefit if hire agreement cut short. Drop off charges Cost of returning car to rental office if customer is unable to. Policy score An assessment of quality, comparing 17 categories from each policy to create an overall score. Based on provider's standard European cover. All prices checked in May 2024 and subject to change.
Car hire companies sell Super Collision Damage Waiver (SCDW), allowing you to reduce your excess to a very small amount, often zero. This cover is called many different names, including Collision Damage Waiver (CDW), Excess Waiver, Super Cover and Excess Protection. But it’s expensive.
Our table below shows quotes we obtained from a selection of major car hire companies. The SCDW covers a week’s rental in Spain. We got quotes for the best, most comprehensive policy available.
Our research shows that it's just not worth buying your insurance from the car hire provider. Not only is it much more expensive than a specialist third-party policy, but it also offers less comprehensive cover.
All of the top ERI providers cover you for damage to the windscreen, tyres and underbody of the car. Most also cover you if you're locked out, put the wrong fuel in the car, or are forced to cut short your hire. None of the car hire companies below cover all of this.
Tyres (T), windscreen (W), underbody (U), mirrors (M), locks (L), roof (R) cover
USING THE TABLE [a] Available as an optional extra [b] Company did not confirm value. Misfuelling Costs associated with using wrong fuel. Key cover Costs associated with lost/stolen keys. Towing Costs for tow truck following an accident or mechanical breakdown. Curtailment Provides a benefit if hire agreement cut short. Drop off charges Cost of returning car to rental office if customer is unable to. Policy score An assessment of quality, comparing 17 categories from each policy to create an overall score. Based on provider's standard European cover. Price Based on a 45 year old driver, renting the smallest car available, with the most comprehensive SCDW, for one week from Malaga airport in July 2024. All prices checked in May 2024 and subject to change
No. Not if you want the most comprehensive cover at the best price.
The only advantage of buying SCDW from a car hire company is that it means slightly less hassle in the event of an accident – because you won’t have to make a claim.
When you book ERI with a specialist insurance provider, you pay the excess for any damage to the car hire company, and then claim back on your insurance. But with SCDW, you either have zero excess (so nothing to pay), or a small excess (which you can’t claim back).
Buying SCDW also means that the car hire company shouldn’t demand such a large pre-authorisation on your credit card. Some budget operators will demand a deposit (in the form of a pre-authorisation) as high as €2,500 if you don’t take out their insurance. The pre-authorisation is usually the same amount as the excess you would pay in the event of an accident.
However, you can get around this problem by hiring with Which? Recommended Provider Zest Car Rental
, which clearly shows the level of deposit you need to pay, helping you to choose a provider with a more reasonable policy.
You don’t have to buy insurance in Europe. Basic insurance is always included in the rental. But that doesn't stop some car hire companies from pressure selling their policies.
Some aim to frighten you into a purchase. They might even tell you that they won’t accept the specialist insurance that you bought online. You can see these unscrupulous tactics in our undercover video . But pressure selling is illegal.
To withstand the pressure from pushy agents we recommend that you buy your own excess reimbursement policy from one of the third-party insurance providers above, then just say no at the rental desk. Explain that you don't want any extra cover and that you understand the need to pay up to the excess limit if you damage the car (safe in the knowledge that you can claim it back).
Some people like to print out their own ERI policy to show the rental company. But we found that this can open you up to the hard sell, as agents can (very convincingly) pick holes in your policy that don't really exist.
In May 2024 we calculated the policy scores by rating the 17 most important elements of the policy, including tyres, windscreen and underbody cover, towing charges, car jacking, personal accident cover and more, to create an overall score. Scores are based on the provider’s standard European policy.
One-week prices are based on a 45-year-old driver, hiring in Malaga, Spain in July. Prices are correct as of May 2024.
