An image of a close-up of rental car keys placed on top of an insurance document

Driving around Europe can be a blast. But before you hit the road, understanding the car rental agreement and car hire insurance is key to avoiding surprise costs for a stress-free trip. This article will cover everything you need to know about car hire insurance in Europe, the different types, what’s included, and how to choose the best one for you.

Car Rental Insurances

When renting a car abroad in Europe you will come across several types of rental insurance. Each type of covers different aspects of damage or loss and understanding these will help you choose the right cover for your trip.

Collision Damage Waiver (CDW)

Collision Damage Waiver, often shortened to CDW, is a type of hire insurance that most car rental companies offer. It will waive your financial responsibility if the rental car is damaged in a collision. But be aware that CDW usually comes with an excess, also known as a deductible, which is the amount you will have to pay yourself before the insurance kicks in.

Supplemental Liability Insurance (SLI)

SLI covers damages you might cause to other people or their property while driving the rental car. This type of insurance is important as it covers legal liabilities that might arise from accidents involving your own car hire vehicle and third parties.

Personal Accident Insurance (PAI)

Personal Accident Insurance covers medical expenses for you and your passengers in the event of an accident. Useful if your existing health insurance doesn’t cover injuries sustained in a car accident abroad.

Theft Protection (TP)

Theft Protection insurance covers the rental car if it’s stolen while you have it. Like CDW, Theft Protection usually comes with an excess amount you would have to pay in case of theft.

Car Excess Insurance

Car hire excess insurance, also known as car hire excess cover or excess insurance, works to cover the excess charges you would otherwise have to pay if your rental car is damaged or stolen. This type of insurance will reduce your out of pocket expenses in case of an incident.

How to Choose the Right Insurance for Rental Vehicle

The images showing the tired person at a desk comparing insurance documents on a laptop

Choosing the right car hire and insurance company requires you to assess your needs, compare options, and understand your existing coverage.

Assess Your Needs

Consider the following:

  • Trip Type: Long road trips may need full cover, and short city trips may need basic insurance.
  • Destination: Different countries have different legal requirements and risk levels.

Compare Options

Compare the car hire insurance options from different rental companies. Look for policies that cover what you need at a good price. Some companies offer zero excess options, which means you won’t have to pay any excess in case of a claim for your hire car.

What’s Included and What’s Not

Understanding what’s included and what’s not in car hire insurance policies is key to avoiding surprises.

Coverage

  • Collision Damage Waiver (CDW): Car damage only, not personal belongings or injuries.
  • Supplemental Liability Insurance (SLI): Third party damage.
  • Personal Accident Insurance (PAI): Medical expenses for drivers and passengers.
  • Theft Protection (TP): The rental car itself.
  • Excess Insurance Cover: Coverage for excess fees charged by car hire companies in case of damage, theft, and other related costs.

Exclusions

  • Negligence: Damages caused by reckless driving or breaking the law are usually not covered.
  • Personal Belongings: Loss or damage to personal items in the car are excluded.
  • Unauthorized Drivers: If someone not on the rental agreement drives, the car insurance may not cover the incident.

Excess Waiver Insurance and Comprehensive Coverage Options

When renting a car it’s important to know what insurance options are available to you to protect yourself from unexpected costs.

Excess damage waiver insurance is a must have for UK residents and those traveling abroad. This type of insurance covers the first part of any repair costs so you’re not left with a big bill. Worldwide car hire providers often offer excess insurance policies which include optional extras like key cover and motorhome cover.

If you travel frequently, annual cover can provide full cover for the year, so you’re covered whether you rent a car for one trip or multiple trips throughout the year. The cover meets the legal requirements of your home country and destination.

Insurance companies offer competitive rates for both single-trip policy and annual policy, so you can find one that suits your budget. If your rental car is stolen whilst in your possession, these policies can cover the costs so you can relax.

Read the policy details to see if additional drivers or specific vehicle types are included to make an informed decision.

Whether you’re renting for business or leisure having the right insurance means you’re covered and can enjoy your trip stress free.

Check Your Existing Cover

Check your existing personal car insurance or travel insurance, to see if they cover rental cars. Some credit cards also offer car hire insurance as a benefit. Knowing your current cover will help you avoid double insurance.

Tips for Buying Car Hire Insurance for Rental Vehicles

Two friends sharing tips about car insurance in a cozy setting

Buying car hire insurance can be overwhelming with all the options and jargon. But by following a few key tips you can make this process easier and get the coverage you need without breaking the bank.

  1. Buy in Advance

One of the best ways to save on car rental insurance is to buy in advance. Rental desk insurance, which is bought at the desk when you pick up your rental car, is often more expensive and may not have the best terms.

By booking ahead, you can compare policies and choose the one that has the best coverage at the best price. Online platforms and insurance companies will often provide comparisons and discounts for all customers and early booking customers so you can get the best deal.

  1. Read the Small Print

Understanding the details of your insurance policy is key to avoiding surprises. Always read the small print of any car rental insurance policy before you buy. Look out for:

  • Exclusions: What is not covered by the insurance. Common exclusions are off-road driving, negligence, or unauthorized drivers.
  • Excess Amounts: How much will you have to pay out of pocket before the insurance kicks in? Policies with lower premiums may have higher excess charges.
  • Coverage Limits: What is the maximum the insurance will pay for damages or theft? Make sure the coverage limits are enough for the potential costs.
  1. Ask Questions

Don’t be afraid to ask the rental company or insurance provider if you are unsure about anything. Important questions to ask:

  • What does the basic insurance cover? Understand the extent of coverage provided by the standard insurance included in your rental agreement.
  • What is the excess amount? Confirm the exact amount you would be liable for in case of a claim.
  • Are additional drivers covered? Ensure that all potential drivers are included in the policy to avoid issues if someone else drives the car.
  • What optional extras are available? Inquire about additional coverage options such as zero car hire excess insurance, roadside assistance, and personal effects coverage.
  1. Consider the Type of Trip

The type of trip you are taking can influence the type of car insurance you need. For example:

  • Short City Trips: For short trips within a city, basic insurance may be enough, especially if you are familiar with the area and traffic.
  • Long Road Trips: For long road trips, consider full coverage, which includes roadside assistance and higher coverage limits, especially if you will be driving in remote areas.
  • International Travel: If you are traveling abroad, make sure your insurance covers international rentals and meets the legal requirements of your destination.
  1. Compare Insurances

Use comparison websites and tools to compare car hire insurance options. Look for policies that have the right coverage at the right price. Consider:

  • Premium Costs: Compare the prices of different policies, taking into account the coverage and exclusions.
  • Customer Reviews: Check reviews and ratings of the insurance providers to see how reliable and good their customer service is.
  • Policy Features: Look for policies that have additional benefits like zero excess options, theft protection and coverage for personal effects.
  1. Check Your Current Insurance

Before you buy car hire excess insurance, check your current policies. Many personal car insurance policies, travel insurance plans, and credit card benefits include coverage for rental vehicles. Your existing coverage may be enough, so you don’t need to buy additional insurance. Make sure you understand the limits and conditions of your current cover to see if it meets your needs.

  1. Go Comprehensive Cover

While the basic cover may seem enough, go comprehensive. Comprehensive car insurance includes:

  • collision damage waiver (CDW)
  • supplemental liability insurance (SLI)
  • personal accident insurance (PAI)
  • theft protection.

This type of cover minimizes your financial risk and covers you for a wide range of situations.

  1. Annual Policies

If you rent cars, you should consider buying an annual car hire excess insurance policy. Annual basis policies can be cheaper than buying insurance for each individual rental, especially for frequent travelers. These policies cover you all year round for convenience and savings.

  1. Check the Rental Company’s Insurance Options

Some rental companies offer their own insurance packages, which may be tailored to their vehicles and rental conditions. Check these against third party insurance to see what’s the best value.

Rental companies often have partnerships with insurance providers and may have special rates or comprehensive packages that aren’t available elsewhere.

  1. Know the Local Laws

Insurance requirements can vary greatly between countries in Europe. Make sure your cover policy complies with the local laws of the country you will be renting and driving in. For example some countries require additional liability insurance or have specific minimum coverage limits.

  1. Document the Rental Vehicle

Before you drive off with the rental vehicle, inspect the car thoroughly and document any existing damages. Take photos or videos and make sure the rental desk staff acknowledges them.

This documentation will protect you from being held responsible for pre-existing damage when you return the vehicle.

  1. Know the Claim Process

Know the process of making a claim if something goes wrong. Knowing the steps, the documentation required, and the timeframe for processing claims will make the situation less painful if you need to make a claim.

  1. Don’t Duplicate Cover

Make sure you don’t end up paying for duplicate cover. For example if your credit card offers car rental insurance you may not need to buy additional cover from the rental company. But make sure you understand the extent of the cover your credit card provides and any exclusions or limitations.

Car Rental Insurance Cost

The images representing car rental insurance costs

Car rental insurance competitive prices vary depending on the cover, rental company and vehicle. Basic insurance is usually included in the rental price but additional cover like excess insurance or supplemental liability insurance will cost extra.

Save Money

To save on car hire insurance:

  • Book Early: Early bookings get discounts.
  • Compare: Use comparison websites to find the best deals.
  • Annual Policy: If you rent cars often, an annual car hire excess insurance policy may be more cost-effective than single-trip policies.

Comparison Table

Insurance TypeDescriptionCoverageTypical CostProsCons
Collision Damage Waiver (CDW)Waives your financial responsibility for damage to the rental carCovers damage to the rental vehicle€10-€30/dayReduces liability, available from most car rental companiesUsually has a high excess, doesn’t cover all types of damage
Loss Damage Waiver (LDW)Combines CDW with theft protectionCovers damage and theft of the rental vehicle€15-€40/dayComprehensive cover reduces overall riskThe higher cost may still have an excess
Supplemental Liability Insurance (SLI)Provides liability coverage for damage to third partiesCovers third-party injury and property damage€5-€15/dayEssential for legal liabilities, high coverage limitsAdditional cost, often not included in basic rental packages
Personal Accident Insurance (PAI)Covers medical expenses for driver and passengersMedical costs, ambulance fees, death benefits€3-€10/dayPeace of mind for medical coverageMay duplicate existing health insurance coverage
Theft Protection (TP)Covers the rental car if it’s stolenVehicle theft sometimes includes vandalism€5-€15/dayEssential for high-theft areas, reduces financial riskUsually has an excess, doesn’t cover personal belongings
Excess InsuranceCovers the excess amount on other insurance policiesExcess on CDW, LDW, TP€7-€15/day or €50-€100/yearLowers out-of-pocket expenses, covers high excess amountsAdditional insurance layer can be confusing to manage
Zero Excess InsuranceEliminates the excess completelyAll damage and theft are covered with no excess€15-€40/dayNo out-of-pocket costs for damage/theft, complete peace of mindHigher daily costs may still exclude certain damages
Personal Effects Coverage (PEC)Protects personal belongings inside the rental carPersonal items lost, stolen, or damaged€2-€7/dayProtects valuable belongings, useful for touristsOften, low coverage limits doesn’t cover all personal items
Roadside AssistanceProvides help for breakdowns and emergenciesTowing, tire changes, battery assistance€5-€10/dayHelpful in emergencies, ensure quick serviceAdditional daily cost may be redundant with the vehicle’s warranty

For more info and to compare rental coveres visit the websites of major car hire companies like Getmancar, Hertz, Enterprise and Sixt. Check with your insurance company or a travel insurance specialist to make sure you’re covered.

This should help you with car rental insurance in Europe so you can get on with your trip.