Car hire insurance - How it works

Your hire car usually comes with inclusive insurance to cover three areas:

• LDW/CDW (Loss/Collision Damage Waiver) - to cover damage to the car.
• TP (Theft Protection) – to cover the car, or part of the car, if it is stolen or damaged during an attempted theft.
• Liability/SLI (Third Party Liability) – the minimum cover that’s mandatory in most countries

However, on the Damage and Theft portions, the insurance is only reducing what you are personally liable for, and there is often an excess to pay in the event of having to make a claim. In Europe this can be a few hundred pounds. In other countries it can be as much as £1500.

Also windows, tyres, the roof and the undercarriage of the car are usually excluded (i.e. not covered). These are the parts of the car most prone to damage and often not covered by the car hire company’s insurance.

A company like insurance4carhire will provide car hire excess insurance to reduce your excess to zero. If you are hiring a car a few times a year then it makes sense to take out an annual excess policy, from only £49.

There are a number of policies available depending on where you will hire the cars, how many people you want to be insured for the cars, and how many days at a time you will be away on each trip.

You can take a daily policy at only £4.50 if you will only be hiring a car for a few days – or you are hiring a car close to home.

The policies will cover all named drivers on the car hire agreement plus any damage to the roof, windows, tyres and undercarriage of the car.

Naturally check their terms and conditions as these of course can always change.