Renting a car is often essential when travelling—but the hidden costs can quickly turn a good deal into an overpriced nightmare. One of the biggest culprits? Car rental insurance. At the counter, you’re bombarded with expensive add-ons, confusing policies, and pressure to “protect yourself.” The truth is, you don’t need to pay premium prices to stay covered. Here are the top car rental insurance hacks that could save you hundreds in 2025.

1. Skip the Rental Desk Insurance

The golden rule: never buy insurance at the rental counter unless absolutely necessary. Rental companies charge £15–£30 per day for excess protection, also called Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW). That’s up to £200 per week—often more than the rental itself.

Hack: Buy standalone excess insurance from a third-party provider before your trip. Prices start from £2 per day, or £40–£60 annually if you rent cars regularly. That’s potentially a 90% saving for the exact same (or better) coverage. 

2. Use a Credit Card with Rental Insurance Perks

Some premium credit cards include free rental car insurance as a cardholder perk. This typically covers collision damage and theft, as long as you decline the rental company’s CDW/LDW and pay with that card.

Hack: Check your card’s terms before you travel. Make sure the coverage is valid in the country you’re visiting, and know what’s included—some cards exclude certain vehicle types or destinations.

3. Bundle with Travel Insurance

If you’re already buying travel insurance, see if it includes car rental excess cover. Many comprehensive policies offer this as part of their protection, saving you from buying a separate excess policy.

Hack: Look for travel insurance plans that include “rental vehicle excess” or “rental reimbursement” in their benefits. Be sure to compare limits and exclusions.

4. Know What’s Not Covered

Rental desk insurance often excludes common damage areas like tyres, windscreens, roof, and undercarriage. If you rely on their policy, you might still face a hefty bill.

Hack: Third-party policies often cover all these extras—and more. Always read the fine print and choose a policy that gives you full protection.

5. Document Everything
Take photos and videos of the car at pickup and drop-off—inside and out. Make sure damage is clearly recorded on the paperwork, and don’t rely on verbal confirmations from staff.

Hack: Time-stamped images are your best defence against unfair damage claims. Use your phone and upload them to the cloud in case you need to dispute anything.

Be a Smart Renter!
Car rental insurance doesn’t have to cost a fortune. By planning ahead, knowing your rights, and using these hacks, you can drive away fully covered—without emptying your wallet.