Do hire cars come with insurance, or should you get extra cover?

What Insurance Is Included with a Hire Car?

Most hire cars come with some level of insurance as part of the rental package. However, this is often the most basic cover required by law. Here’s what’s typically included:

• Third-Party Liability Insurance: This covers damage to other vehicles, property, and injuries to other people if you’re responsible for an accident. It does not cover damage to the hire car itself.
• Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW): This limits your financial responsibility for damage to the hire car, but it often comes with a high excess.
• Theft Protection: Covers the cost of the car if it is stolen, though an excess may still apply.

Whilst this might sound reassuring, it’s important to check the details of what’s actually covered. Excess charges on hire cars can be high, and certain types of damage may be excluded.

What Might Not Be Covered?

Even if a hire car comes with basic insurance, there are usually exclusions and limitations. Common gaps in cover include:

• High Excess Charges: If the car is damaged, you might have to pay a significant amount towards repairs before any insurance cover kicks in.
• Damage to Tyres, Windscreens, and Undercarriage: Many standard rental policies exclude these areas, meaning you could be responsible for repair costs.
• Lost Keys and Misfuelling: Some hire agreements do not cover accidental fuel mix-ups or replacing lost keys.
• Driving Outside the UK: If you’re planning to drive across borders, standard rental insurance may not extend beyond the UK.

These potential pitfalls mean that many drivers consider taking out extra cover to protect themselves from unexpected expenses.

Should You Get Extra Insurance?

Whether you need extra insurance depends on how comfortable you are with the level of risk. If you’d rather avoid the possibility of paying a hefty bill for a scratched bumper or a misplaced key, additional cover could be worth considering.

1. Excess Insurance

Excess insurance is one of the most common add-ons. It covers the amount you’d need to pay towards repairs if the car is damaged. Some rental companies offer their own excess reduction policies, but independent excess insurance providers may offer more competitive prices.

2. Super CDW or Zero Excess Cover

Some hire companies offer an upgraded Collision Damage Waiver that reduces or eliminates your financial liability in the event of damage. However, these policies can be costly when purchased directly from the rental desk.

3. Personal Accident Cover

If you don’t already have travel insurance that includes medical expenses from car accidents, you may be offered personal accident cover. However, many people find this is already included in their existing policies.

4. Breakdown Cover

Some rentals include basic roadside assistance, but breakdown cover that includes full recovery and replacement vehicles is often an additional cost.

Can You Rely on Your Own Insurance?

If you have an existing travel insurance policy or credit card that offers car hire excess protection, you may not need to buy extra cover from the rental company. Some policies even extend to international rentals, so it’s worth checking before paying for additional insurance.

However, if you’re borrowing a car rather than hiring one, short-term car insurance may be necessary to ensure you’re fully covered to drive.

Wrapping Up:

Most hire cars come with some level of insurance, but the cover provided might not be as comprehensive as you’d expect. Standard rental policies often include third-party liability and a basic Collision Damage Waiver, but excess charges and exclusions can leave you with unexpected costs.

Whether you choose extra cover depends on your risk tolerance and whether you already have a policy that offers sufficient protection. Comparing options before your trip can help you save money and avoid costly surprises.

Need to arrange extra shoertterm cover for a hire car? Click below to find out more and get a quote.