admiral travel insurance car hire excess

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Does travel insurance cover car hire?

Find out if you need extra insurance for your rental car on your next holiday..

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Does travel insurance cover the use of rental cars, how does insurance cover rental car excess, car hire excess insurance exclusions to be aware of, how do i claim with car rental excess insurance, can car hire excess insurance save me money, frequently asked questions.

So you’ve got your holiday booked and a rental car sorted for your trip too. You should have been made to purchase a basic level of insurance when you signed on the dotted line for the hire car.

However, you could still end up having to pay an excess fee if the car gets stolen or damaged in any way. What’s more, this charge could be thousands of pounds – potentially more than the total cost of your holiday.

We look at how car hire excess insurance works and how it can save you getting hit with a large holiday bill.

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A standard travel insurance policy won’t typically cover you for using a rental abroad.

However, when you hire a vehicle, the rental company will generally add in some sort of car insurance policy. At the very least, it will give you third-party coverage, paying for any damage you cause to another person’s vehicle or property.

The rental car deal will probably come with a damage waiver too, which saves you from having to pay for most of the damage to the rental vehicle should you have an accident. It’s the rental business saying we’ll shoulder much of the cost for repairing the car. However, there is some bad news. These waiver’s often come with an excess, which is basically the amount of money you have to chip in to help the rental company with repair costs.

Given excesses can be expensive, you might end up shelling out hundreds, if not thousands, of pounds.

When you hire a car abroad, you might be shocked by how much the excess costs can be.

Should you have an accident, you could end up having to pay as much as £2,000. The rental company may even hit you with excess fees if it’s a minor bump or the damage was caused by another driver being reckless. So by taking out a rental car excess insurance policy, you can be saved from having to pay these huge sums. You can get this additional layer of coverage through your rental company, but getting excess insurance through an insurer based in the UK might get you the best deal.

Any insurance you have covering your hire car comes with plenty of terms and conditions. Should you break any of the rules, the provider might refuse to pay. Here are some reasons why you might be left footing the repair bill.

• The incident was the result of your reckless behaviour – perhaps you were speeding or ignoring traffic signs.
• The incident was the result of you being drunk or under the influence of drugs.
• The incident happened when the person driving is not someone named on the rental agreement.
• The car needs repairs due to mechanical or electrical failures, or needs parts replaced due to wear and tear.
• The vehicle is more than 10 years old.
• The limit on what the car hire excess insurance will pay is less than the quoted excess cost from your rental company.

Whether you’ve taken out a policy with a travel insurance provider based in the UK or through the car hire company itself, here’s a breakdown of what will happen if you claim on your car rental excess insurance and need to get your money back.

• The rental company will take the excess amount off the debit or credit card you used when hiring the car.
• You need to then get together all your relevant documents and receipts and pass them onto the insurer.
• The insurer or company will then process your claim.
• If successful, you’ll be reimbursed.

Ultimately, it depends whether you have an accident or not. Given you might be charged upwards of £2000 for car hire excess, having a policy like this could save you vast amounts should anything go wrong.

However, if you can afford to pay the sometimes hefty excess fees, then getting car hire excess insurance certainly isn’t mandatory.

What kind of situations does rental car excess cover protect me from?

However, there are exclusions where the insurer will refuse to pay for the excess. See the above article for details.

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Esther Wolffowitz

Esther Wolffowitz was a publisher at finder.com specialising in insurance. Esther holds an MSc in Media and Communication Governance from the London School of Economics and Political Science (LSE).

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The essential guide to car rental excess insurance

Knowing whether you need to purchase car rental excess insurance is a good start when you decide to rent a car. Making sure you’re protected if there’s an accident is important, but do you need the extra car rental insurance options that are offered when paying for your rental ? The short answer is not always. But let’s find out more.

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What is car rental excess insurance?

How much is the excess you have to pay for your car rental, what is covered by car rental excess insurance, how does it work, do i need a car rental excess insurance, what is the best way to cover rental car excess, the collision damage waiver as an alternative, frequent question about car rental insurance excess.

Car rental excess insurance cover (or supplemental car rental insurance) is a protection plan for a fee that provides coverage for out-of-pocket expenses you may incur if there’s an accident or damage to a car rental . Rental agreements can include an excess amount or high deductible that you are responsible for if a rental car is in an accident, stolen, or damaged.

Car rental excess cover or deductible amounts can vary wildly. Factors include the rental company, the rental car type , the location and the rental agreement terms. Excess amounts are usually outlined in the rental agreement and can range from a few hundred to thousands of dollars.

Depending on the policy’s terms and conditions, the insurance can cover some or all the costs should you get in an accident.

In the U.S., car rental companies will typically offer four types of coverage:

• Liability coverage: This can vary from state to state but it is meant to protect you if you hurt someone or damage property during an accident.
• Collision or loss damage waiver: The waiver helps cover the cost if you damage a rental car.
• Personal effects coverage: This covers personal belongings if they are stolen from a vehicle (though it’s worth noting if you have renters' or homeowners’ insurance, this will typically be covered).
• Personal accident coverage: This covers medical bills if you or your passengers are injured in a car rental accident.

In Europe, rentals nearly always include liability coverage, but not the risk associated with damage to the vehicle itself or theft. Since your personal U.S. auto insurance will not apply in Europe, you will have three main options:

• Buying a collision damage waiver from the car rental company
• Using zero-deductible collision coverage that comes with some credit cards
• Purchasing collision coverage through a travel insurance provider.

This depends. If you have liability and comprehensive insurance for your vehicle, the coverage likely extends to when you are driving a rental car in the U.S. for personal reasons. If you’re traveling abroad, for business purposes, or simply want more coverage, you might need extra rental car insurance.

In Mexico, for example, you must buy extra coverage from a travel insurance provider or a rental car company to satisfy the mandatory insurance requirements .

Other instances where you will want to consider purchasing extra insurance include if you don’t own a car and you rent one occasionally (in this case, you probably don’t have personal auto insurance), or if your personal policy only includes liability insurance and not comprehensive or collision coverage.

One of the best car rental excess insurance options or ways to cover rental car excess is to buy insurance from a third-party company. The price for extra protection insurance can be lower than buying additional coverage from a rental company.

The only downside is that if the car gets damaged, you’ll have to pay the rental company first and then claim it back to your insurance.

Car rental companies typically offer a collision damage waiver when you make an online reservation and again when you pick up the vehicle. When you buy one, the company forfeits the right to charge you for damages to the rental car , but note that CDWs typically don’t cover tire and side mirror damage or damage from “gross negligence,” such as speeding or driving while intoxicated.

Hopefully, we've taken the headache out of the rental car process at home and abroad, and if you're ready to rent a car for your next vacation, we're here to help.

How does KAYAK know what to put in this guide?

I have been traveling the world for over 20 years. I’ve rented cars in Mexico, Italy, France, Ireland, the U.K. and throughout the U.S. Some experiences went smoothly, while others did not, like when I rented a compact manual car and got stuck trying to drive up a steep Tuscan hillside. Through trial and error, I’ve learned when to purchase extra insurance and when not to. Renting a car can be intimidating, but with the help of KAYAK and through my experience and mistakes, I want to help you learn.

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Holiday cancellation cover and travel insurance

Article contents.

Rebecca Lees

22 August 2022 | Updated 20 October 2023 | 7 minute read

We all know that feeling you get when you’ve booked a holiday and start counting the sleep. But unfortunately, life happens and sometimes you have to cancel.

Make sure you’re protected by adding holiday cancellation cover to your travel insurance . Here's how it works.

What is holiday cancellation cover?

Holiday cancellation cover is a type of insurance that protects you against something unexpected happening, either before you set off or during your trip.

It’s included as standard with some travel insurance policies, but not all. As always, check before you take out cover and check your policy documents .

The level of cover provided and the excess you might have to pay also varies widely between insurers and between policies.

For example, we offer:

Also, the higher the level of cover you have, the more the excess reduces too.

We pay up to the policy limits for:

• deposits or package holiday cancellation charges
• accommodation and travel costs
• excursions and activities
• reasonable cancellation charges for kennel, cattery or professional pet sitter costs
• car parking fees

Any successful claim is paid as a lump sum if your trip is cancelled or curtailed (cut short). If it’s the latter, the sum will reflect the remaining days of your holiday that you miss, not the whole holiday.

Why should I buy holiday cancellation cover?

Things can change at any point between booking and you starting your journey

Some common examples include:

• change in FCDO advice
• you or a travel companion becoming too ill to travel
• a close family member (usually a parent, sibling or child) becoming seriously ill or dying
• being advised against travelling due to complications of pregnancy
• called to court as a witness or to do jury service
• you or a travel companion are a member of the British Armed Forces or emergency services, and your leave is postponed

Our holiday cancellation cover also protects you if:

• you’re made involuntarily redundant from a job you’ve had for more than two years
• your home is seriously damaged by fire, storm or flood
• your home is burgled in the seven days before your trip departure
• your passport or visa is stolen in a burglary at home in the seven days before your trip departure and you can’t replace it in time

You may also need to cut your holiday short if you need to come home because:

• you or a travel companion become seriously ill
• a close member of your family has been taken ill or passed away

You can’t claim for these if they happened before you took out travel insurance, so we recommend buying holiday cancellation cover soon after you’ve booked your trip.

When can I make a claim if my holiday is cancelled?

Our single trip insurance cover begins from the date the policy was issued .

Our annual multi-trip travel insurance cover begins from the date the policy begins .

If you contact us to make a claim, make sure you have evidence of costs incurred, such as unused tickets and receipts. All documents must be sent to us at your own expense.

Here are some things you’ll need for specific cancellation reasons:

• Serious illness, pregnancy complications or an accident - medical certificate from the doctor or hospital
• Jury service - supporting evidence from the court or other relevant authorities

If you book a trip that starts after your annual travel insurance policy ends, your only covered up to the policy end date unless you renew the policy on or before the expiry date.

What isn’t included with holiday cancellation cover?

Your policy document will highlight what is and isn’t covered when you book holiday cancellation cover. If you’re unsure of anything, you can contact us.

You can’t claim on holiday cancellation cover if:

• you or anyone travelling with you doesn’t declare a pre-existing medical condition present at the start of your policy or when you booked your trip, and your holiday is cancelled or cut short because of it
• you change your mind and don’t want to go
• you knew your trip might be cancelled, postponed or cut short when you booked it
• you knew you would be made redundant when you booked your trip or you became unemployed because of misconduct, resignation or voluntary redundancy
• you don’t have the correct passport or visa
• you travel against a doctor’s advice
• the Foreign Office has advised against ‘all travel’ or ‘all but essential travel’ before you booked or bought the insurance

Your holiday cancellation cover also might not pay for things like airport taxis and air passenger duty.

And finally, holiday cancellation insurance isn’t the same as cancelling travel insurance. When you take out any insurance policy, you have a ‘cooling off’ period, which lets you change your mind if you decide you no longer need it.

Your rights are in the policy documents we’ll send you.

Read our travel insurance jargon buster  to get a better understanding of terms like 'cooling off' which will be in your policy book.

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• Car hire excess versus travel insurance

     Car Hire Excess vs Travel Insurance

It's true, many travel insurance policies do include car hire excess cover, but there are quite a few restrictions to pay attention to. If you're not sure whether you need a standalone excess reduction policy or if travel insurance is enough, we're here to help. Don't feel wooly headed, get geared up and ready to go with our 8 pros of hire car excess.

1. You get more cover

Travel insurance policies typically only cover up to around $6,000, if you’re needing more cover for a camper or fancy set of wheels standalone policies like ours cover up to $8,000.

2. You pay NO excess

3. windscreen, tyres & underbody covered, 4. all are welcome, 5. all drivers included, 6. there are no timing restrictions, 7. there are no distance restrictions, 8. our policies are cheaper for longer, don’t forget, there's no medical cover with domestic travel insurance.

The main reason people purchase travel insurance is because of the medical benefits. However domestic policies generally do not include these.

So what are you waiting for?

You’d be baaarmey not to buy car hire excess with Baaaney instead. A policy with CHE could cost as little as $10* a day and if you do have an accident, no matter if it's to the underbody or tyres, you pay nothing, zero, zilch, nada! Get a quote now! For heaps more handy helpers, check out our rental excess guides.

Further reading

What is car hire excess anyway ?

Going from A to B? Car Hire Excess saves your wallet from a wipeout!  

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Car Hire Excess

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"Car Hire Excess" is a trading name of the Insurance Geeks Pty Ltd ABN 35 612 507 785. The Insurance Geeks is an authorised representative of Coffre-Fort Pty Limited ABN 66 125 358 518, AFS Licence No. 472457. This site contains general guidance only on insurance products available to you. Before you buy a policy, you should consider the Target Market Determination (TMD) and Product Disclosure Document (PDS) in light of your personal circumstances to determine if this product suits your needs. This insurance is underwritten by HDI Global Specialty SE - Australia.