Rental Car Insurance UK: Do Not Learn This the Hard Way

Deciphering rental insurance in the UK isn't as straightforward as just choosing the most affordable one from the booking site. Here's one thing rental firms won't tell you.

A car rental that costs £35 a day can easily cost you £100 when they tack on their so-called "premium cover." I've seen it many times before.

And while you get some base insurance coverage with your rental agreement, here's a kicker: there's always an excess fee involved. £500-£2000 is standard practice. This is what YOU pay in case there's any problem, even if it wasn't your fault.

In this article, I'm going to dispel all the BS out there. I'll help you understand what you really have and where the hidden fees lie and how you can get full coverage for a fraction of desk prices.

Before you hand over your card to any car rental company, compare standalone excess insurance online or keep reading. I promise this will save you money.

What Is Actually Included? (And What Is Not)

Insurance is included in most cars rented in the United Kingdom. What do you think about this? No, it is far from being perfect.

You receive:

Third-party insurance (for injuries and damages to other property)

CDW (Collision Damage Waiver), which minimizes your cost for collision

Coverage of theft

However, there is one problem. Your car insurance does not cover all costs.

Windscreen – Not included.

Tyres – Not included.

Underbody – Not included.

Roof damage – Not included.

Interior marks/burns – Not included.

You still have to pay your own excess.

And then you damage the rented vehicle. It costs you £2,500 to repair the damage. The excess is £1,000. And you pay £1,000 from your own pocket. This is how it goes.

The Rental Desk Will Offer to Sell You Cover for £30 a Day

This is where most people overspend.

The guy/girl behind the counter will ask: "For only £25 per day you can make your excess go down to zero."

No, thank you!

£25 per day for a week’s rent comes to £175. Crazy!

Right approach. Buy separate excess cover online before your vacation.

 

 

I pay £65 per annum towards worldwide excess cover. This covers all my rentals under it. The desk asks for £25 per day.

How Standalone Excess Insurance Actually Works

This is where confusion arises with many people. I will try explaining this.

You take the car on rent. You pay the standard rental fee. You DO NOT buy the additional insurance from the desk.

In case of any accidents, you pay the excess to the desk. This can be around £1,000. Yes, you have to pay the excess amount.

HOWEVER. You go ahead and claim this £1,000 back from your independent insurer. They compensate you.

The rental firm blocks your card by £1,000.

 That is normal. You just get it back later.

Providers to look at: Questor, iCarhireinsurance, Reduce My Excess. Read the reviews. Pick one with a decent Trustpilot score.

Fuel Policy: Do Not Get Caught Out

This one catches so many people.

There are three fuel policies. Only one of them is fair.

 

 

Always choose full-to-full. Fill up at a petrol station near the return. Keep the receipt. Simple. 

 

Before You Drive Away: Do This or Regret It

I have heard too many stories of people being charged for damage they did not cause.

Take photos of everything.

• Every side of the car

• Wheels and tyres

• Windscreen (from inside and outside)

• Dashboard and mileage

• Any existing scratch or scuff

Take a video too. Walk around the car slowly. Narrate it. "Small scratch on rear bumper. Already marked on the agreement."

Do the same thing when you return the car.

This takes three minutes. It saves you from false damage claims that could cost hundreds.

Young Driver? You Will Pay More. Here Is How Much

If you are under 25, rental companies will charge you extra.

 

 

Some companies do not rent to anyone under 21 or 23 at all. Check before you book.

Tip for young drivers: Some smaller independent rental companies have lower surcharges. Shop around.

What to Say at the Rental Desk (Script)

The desk agent will try to upsell you. Here is how to handle it.

Agent: "Do you want to reduce your excess to zero for £25 a day?"
You: "No thank you. I have my own excess cover."

Agent: "Our premium package includes everything: windscreen, tyres, the lot."
You: "What is the daily rate for the basic cover only?"

Agent: "This is our most popular option."
You: "Can I see the exclusions for the basic cover in writing?"

Be polite but firm. They make commissions on upgrades. You do not need to pay for them.

What If You Are Renting After an Accident?

If your own car is off the road and you are renting because of a non-fault accident, the rules are different.

You should NOT be paying for insurance yourself. The at-fault driver's insurer should cover everything.

But watch out for credit hire agreements. Some companies charge £150-£400 per day. If the other insurer refuses to pay, that bill could come to you.

Always ask: "Is this a credit hire agreement or a standard courtesy car?" Get the answer in writing.

Wrapping It Up

Here is what you actually need to remember.

The basic insurance included with your rental has a high excess. The desk will try to sell you overpriced cover. Do not buy it.

Get standalone excess insurance online before you travel. Costs £2-£5 a day or £40-£80 for a whole year.

Choose a full-to-full fuel policy. Take photos and video before you drive away. If you are under 25, budget for extra fees.

Get a standalone excess insurance quote before your next rental; your wallet will thank you.