- Desk-sold excess waiver is where hire companies make their margin.
- A standalone annual excess policy costs a fraction of the desk price.
- Photograph everything before you drive off — damage disputes are the other trap.
Car hire is one of the few markets where the advertised price bears little relation to what you pay. The headline daily rate is often genuinely cheap; the profit is made at the desk, on insurance you have already got and fuel you will not use.
Understand the excess
Hire cars come with insurance, but with a large excess — often over a thousand pounds. If the car is damaged, you pay up to that amount.
At the desk you will be offered a “super collision damage waiver” or excess reduction to bring that to zero. It is typically sold per day at a rate that can rival the cost of the hire itself, and staff are frequently incentivised to sell it. The pitch is often firm, sometimes alarming.
Buy standalone excess insurance instead
Independent excess reimbursement policies cover the same risk at a fraction of the price. An annual policy covering all your hires for a year often costs less than a few days of desk cover.
How it works: if you damage the car, the hire company charges your card as normal, and you claim the amount back from your standalone insurer. You need the money available in the meantime, which is the one real drawback.
Buy it before you travel. Check it covers the country you are visiting, and that it includes the parts hire companies commonly exclude — tyres, windscreen, undercarriage, roof and mirrors. Those exclusions are where most disputes arise, and a policy that excludes them is much less useful.
The deposit and the card
- You will almost always need a credit card in the main driver’s name. Many companies refuse debit cards, and those that accept them often demand extra insurance.
- A deposit is blocked on the card for the excess amount. Make sure your limit can take it.
- Prepaid and virtual cards are usually rejected.
Paying by credit card also gives Section 75 protection on the hire itself.
Fuel policies
Insist on full-to-full. You collect the car full and return it full. It is the only policy where you pay for exactly what you use.
Avoid full-to-empty or “pre-purchase fuel” arrangements. You buy a tank at an inflated rate plus a service charge, and any fuel left when you return it is a gift to the company.
Find a petrol station near the drop-off before you set out, and keep the receipt as proof you refilled.
Inspect and photograph — properly
This is the step that prevents the most expensive disputes.
- Walk around the car before leaving and photograph every panel, plus the wheels, alloys, windscreen, roof and bumpers.
- Video the walk-around with the time visible.
- Photograph the interior, the fuel gauge and the mileage.
- Get every existing mark noted on the paperwork before you sign, however trivial.
- Repeat the whole process when you return it, including a photo of the fuel gauge and the parking space.
Post-hire damage charges appearing weeks later are common. Photographs with timestamps are how you defeat them.
Other charges to watch
- Additional driver fees, often charged per day. Some brokers include one free.
- Young or senior driver surcharges.
- Airport surcharges — collecting from a city location can be noticeably cheaper if it is convenient.
- One-way fees for returning to a different location.
- Cross-border restrictions. Taking the car into another country often needs permission and a fee.
- Late return. Most charge a full extra day beyond a short grace period.
- Admin fees for processing fines or tolls, which are charged on top of the fine itself.
Booking well
- Book early for peak periods; last-minute hire in summer is expensive.
- Compare brokers and the hire companies directly — both can win.
- Check the deposit and fuel policy before booking, not at the desk.
- Read recent reviews of the specific branch, not just the brand. Practice varies enormously by location.
- Route the booking through a cashback site.
- Consider whether you need a car at all — public transport, or hiring for only part of the trip, is often cheaper.
At the desk
Be polite and firm. You are entitled to decline the excess waiver, and saying “I have my own excess insurance, thank you” is enough. If pressed repeatedly, ask them to note your refusal on the paperwork and move on. Read what you sign — extras are sometimes added to the agreement in the hope you will not notice.
