If you’ve ever rented a car, you’ve likely faced a hard upsell at the rental desk. One of the biggest traps? Excess insurance. It’s sold as essential protection against high excess fees if the car is damaged or stolen—but it comes at a steep price. Rental companies often charge £15–£30 per day, which can easily double the total cost of your rental. The good news? You don’t have to pay those inflated prices.

Excess insurance, sometimes called a Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW), covers the excess amount you’d otherwise have to pay in the event of damage or theft. But here’s the catch: the coverage offered by the rental desk is overpriced, and often comes with exclusions or loopholes.

What They Don’t Tell You at the Counter

Rental desk staff might imply you must buy their excess insurance or that it’s required to drive the car away. Not true. You are fully entitled to decline the rental company’s excess waiver and use a standalone excess insurance policy purchased from a third party.

Independent excess insurance providers offer the same, and often better, coverage for a fraction of the cost. Instead of paying £150+ for a week’s coverage at the desk, you can get a policy starting from as little as £2 per day or £40–£60 for annual cover—which is ideal if you rent multiple times a year.

Better Coverage at Lower Prices

Third-party policies often cover more than just the basics. This can include:

Damage to tyres, windscreens, roof and undercarriage (which many rental policies exclude)

Towing charges

Lost keys

Misfuelling costs

You can buy a daily or annual excess insurance policy online in just minutes before you travel. Just make sure you print or download a copy of your policy to have on hand when collecting your rental.

How It Works

If you do need to make a claim, you’ll pay the rental company up front and then claim back the excess from your insurer. While it may sound inconvenient, the savings and broader coverage usually outweigh the minor hassle.

Top Tips for Avoiding the Rental Desk Trap:

1. Buy excess insurance in advance – never wait until you’re at the counter.

2. Read the terms carefully – make sure your policy covers what you need.

3. Say no confidently – rental staff are trained to upsell, but you can firmly decline.

4. Inspect the car before and after rental, and take photos or videos to avoid disputes.

The Bottom Line

Paying for excess insurance at the rental desk is one of the most common ways travellers waste money. By planning ahead and purchasing a standalone policy, you’ll save a significant amount—and get better protection. Don’t fall for the pressure tactics. Be smart, be prepared, and never overpay for rental car insurance again.