Excess car insurance is usually not a requirement when you go to hire a car. It is a matter of choice whether you want it or not. However rental companies may ask that you do take out a “general” car insurance policy to protect the car in the event of an accident or third party claim.

An insurance policy generally comes with a certain amount of what is called “excess”. This is the sum of money you need to find out of your own pocket if a claim is made and the claim is successful. In this case the excess relates to your insurance policy on your rental car.

When you go to rent a car, as mentioned before, the car hire company generally asks that you have insurance. However, this is not excess car insurance. This policy is typically in place to provide you with protection in the event of you;

• damaging the car in away way;
• writing the car off in an accident;
• causing injury or death to a third party with the rental car or damaging the property of a third party.

If something were to happen that is covered by the insurance policy, you have to pay the excess on the policy before the provider takes over the remainder of the claim. This is where excess insurance comes in. So what exactly does the policy for excess cover?

• subject to a successful claim, the policy typically provides financial assistance with any excess on a rental car insurance policy.

That is all it covers. However it may save you from having to find an unexpected sum of money as the amount of excess generally differs between insurance providers. With some rental car insurance policies the excess may be a few hundred pounds, with other providers it may be go up to £1000 or even £2000. Your excess car insurance may typically cover all of your excess, up to pre-agreed limits.