Car hire insurance, explained
Excess, deposit, CDW... we break down car hire insurance in plain English, no jargon or small print.
Renting a car always comes with insurance attached, but working out exactly what each type covers can be confusing: third-party liability, CDW, excess, deposit, fully comprehensive... These are terms that appear in every contract and are worth understanding clearly before you sign, so there are no unpleasant surprises if something goes wrong during your trip.
In this guide we explain, without the jargon, what insurance is always included in your rental, what each optional upgrade covers, how the deposit held on your card works, and which items are usually excluded even with the most complete cover. That way you can choose the option that best suits your trip with confidence.
Search carsThird-party liability: the insurance that's always included
Every hire car comes with compulsory third-party liability insurance as standard, covering any damage you might cause to others (other vehicles, people or property). It's a basic cover and doesn't extend to damage to the hire car itself or to theft. That's why an additional cover (CDW and theft protection) is almost always taken out on top, for real peace of mind.
CDW and theft cover, with an excess
CDW (Collision Damage Waiver) and theft protection reduce your liability in the event of an accident or theft of the vehicle, but they almost always come with an excess: the maximum amount you'd have to pay out of pocket if something happens. This excess can vary considerably depending on the company and the type of car. It's the single most important figure to check before signing the contract.
The deposit: the hold on your card
The deposit is a hold placed on your credit card — not an actual charge — which acts as a guarantee to cover that excess if there's any damage or incident. If you return the car with no problems, the amount is released within a few days, depending on your bank's timeframes. It's important to travel with a credit card (not a debit card) in the main driver's name, as this is usually the method required for the deposit.
Fully comprehensive with zero excess: total peace of mind
Fully comprehensive cover with no excess, also known as super CDW, is an upgrade that brings that excess down to zero. With this cover, if the car is damaged or stolen, you don't have to pay anything extra (aside from the usual exclusions explained below). It's the most recommended option if you want to rent without worries or surprises.
What almost no insurance covers: the usual exclusions
Even with fully comprehensive zero-excess cover, a number of items are usually left outside the cover at most companies: tyres, windscreens and windows, the underside of the vehicle, the roof, mirrors, lost keys, and refuelling with the wrong fuel. These costs are normally the customer's responsibility, so it's worth being especially careful with them during the rental.
What to check before signing the contract
Before accepting the conditions at the counter, take a couple of minutes to read the exact excess amount and the list of exclusions for your insurance. These details always appear in the rental agreement and can vary from one company to another, so don't assume anything just because you've seen it before on a previous rental. If you're unsure, ask directly at the counter before signing.
How we can help at Gavendo
At Gavendo we've been negotiating rates and conditions with the leading hire companies since 1982, which means we know their insurance policies inside out. We help you understand the excess and exclusions on your booking before you travel, so you arrive at the counter with no surprises. Our team is on hand to answer any questions about cover at any point in the booking process.
- Read the excess before signing — Always ask for the exact excess amount at the counter: it varies by company and is the key figure if anything happens.
- Bring a credit card, not a debit card — The deposit is held on a credit card in the main driver's name; without one, you may not be handed the keys.
- Check the exclusions before travelling — Tyres, windscreens, the roof and keys are usually excluded from cover: take extra care with these during the rental.
Frequently asked questions
What's the difference between CDW and fully comprehensive with zero excess?
CDW reduces your liability in the event of damage or theft but still leaves you with an excess to pay; fully comprehensive zero-excess cover (super CDW) removes that excess entirely, down to zero, aside from the usual exclusions in the contract.
What exactly is the excess on car hire insurance?
It's the maximum amount you'd have to pay yourself if the car is damaged or stolen during the rental. The amount depends on the company and the type of vehicle, so it's always worth checking in the contract.
Why is money held on my card if I've already paid for the rental?
That hold is the deposit, a guarantee that covers the insurance excess in case of damage or an incident. It's not a charge: if you return the car in good condition, the amount is released after a few days.
Are tyres and windscreens covered by the insurance?
Generally not. Tyres, windscreens, the underside, roof, mirrors, lost keys and refuelling with the wrong fuel are common exclusions that usually fall outside the cover, even with fully comprehensive zero-excess insurance.
Can I pay the insurance deposit with a debit card?
It depends on the company, but most require a credit card in the main driver's name to hold the deposit. It's worth confirming this before travelling to avoid problems when picking up the car.
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