One of the biggest hidden costs of car hire is excess insurance — and one of the easiest ways to cut your total car hire cost is to buy it separately rather than from the rental company. Combined with the cheapest base rate from VIP Cars, you can save £50–£140 on a week's hire.
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What Is Car Hire Excess Insurance?
When you hire a car, the base price includes Collision Damage Waiver (CDW) — but this typically comes with an excess of £500–£2,000. If you damage the car, you're liable for the excess amount even if the incident wasn't your fault.
Excess insurance covers this excess — so if the car is scratched, dented or damaged, your policy pays the excess charge rather than you.
Rental Company CDW vs Standalone Policy
| Option | Daily Cost | What's Covered | Our Verdict |
|---|---|---|---|
| Rental company CDW upgrade | £15–£25/day | Reduces or eliminates excess | Expensive — avoid |
| Standalone daily policy | £3–£8/day | Covers excess on any hire car | Best value option |
| Annual multi-trip policy | £40–£80/year | Unlimited trips in 12 months | Best for frequent hirers |
💡 Pro Tip: If you hire cars more than twice a year, an annual car hire excess insurance policy is almost certainly cheaper than per-trip policies. They start at around £40/year and cover unlimited trips.
Best Car Hire Excess Insurance Providers UK
- Insurance4carhire — popular choice, good coverage
- iCarhireinsurance — competitive pricing, clear terms
- Questor Insurance — strong annual policy options
- Your existing travel insurance — many policies include car hire excess; check before buying separately
How Much Can You Save?
| Trip Length | Rental Company CDW | Standalone Policy | Saving |
|---|---|---|---|
| 3 days | £45–£75 | £9–£24 | £36–£66 |
| 7 days | £105–£175 | £21–£56 | £84–£154 |
| 14 days | £210–£350 | £42–£112 | £168–£308 |
Find the Cheapest Car Hire with VIP Cars
Compare base car hire prices with VIP Cars, then buy standalone excess insurance separately for maximum savings.
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Sento earns a commission if you book through our links — this never affects our recommendations. VIP Cars prices and availability are set by rental suppliers and change regularly. Always compare prices before booking. Updated April 2026.