Rental car insurance decoder
The insurance at the rental desk is usually several products sold as one. See which one the law makes you buy, which you can decline, and the six questions to ask before you sign.
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Where are you picking the car up?
The law below belongs to that country, so pick the one where you collect the car — not where you live.
Four different things sold as one
The counter usually offers one “insurance” package. It is really several products, sold together, and only one of them is required by law. You can usually decline the rest.
Third-party liability
Also called: Third-party insurance, TP, TPL
Compulsory by law
Covers: Damage or injury to other people or their property, even when the accident is your fault.
Does not cover: The rental car itself, injury to you, and theft or fire affecting the rental car.
Ask: Is the third-party cover included in the price I have been quoted, and what is my excess on it?
Collision Damage Waiver
Also called: CDW, LDW, loss damage waiver, damage waiver
You can decline this if you already have cover elsewhere
Covers: Damage to the rental car, with an excess you pay yourself.
Does not cover: Often tyres and glass. Read the exclusions rather than the headline.
Ask: What is the excess on this waiver, and what does it exclude?
Personal accident insurance
Also called: PAI, personal effects cover
You can decline this if you already have cover elsewhere
Covers: Injury to you or your belongings.
Does not cover: The rental car, and anything your own travel insurance already covers.
Ask: Does my own travel insurance already cover this, and what does this one add?
Theft cover
Also called: Theft protection, STW
You can decline this if you already have cover elsewhere
Covers: Theft of the rental car, or of parts of it.
Does not cover: Usually leaves a high excess, and often only applies if you can produce the keys and the police report.
Ask: What is the excess on theft cover, and what must I do at the police station and the desk?
Tyres, glass and underbody
Also called: Tyre and glass cover, wheels and glass
You can decline this if you already have cover elsewhere
Covers: Tyres, wheels, glass and the underside of the car, which the main waiver often excludes.
Does not cover: Usually sold separately, and often only for a fee at the desk.
Ask: Are tyres, glass and the underbody included in the main waiver, and what do they cost separately?
United Kingdom: what the law says
The excess is the most you pay if the car is damaged; the deposit is what the rental company holds on your credit card. On a cheap deal both can be large.
At the counter
- Check the excess and the deposit before you book, not at the desk.
- If you cannot cover the deposit, the rental company will usually push extra insurance: it brings the excess and the deposit down, but it can be very expensive.
- The CDW is the 'insurance' that usually comes as the standard package. It usually does not cover everything and often excludes tyres and glass.
- You do not have to buy the insurance from the rental company. Independent cover is often cheaper and can be better, and you can buy it before you travel.
- If you take independent insurance, the rental company may still want a deposit, and in a damage case they take the repair cost off the deposit and you claim it back from your insurer.
- If you feel you are being forced into unwanted insurance, you can walk away and hire elsewhere. If you cannot, pay so you get the car, but write on the contract that you object to the payment and reserve the right to complain and ask for your money back.
- Pay with a credit card if you can, so you keep the option of claiming under section 75 of the Consumer Credit Act later.
If something goes wrong
- Citizens Advice, 03454 04 05 06, for consumers in England, Scotland or Wales
- Consumerline, 0300 123 6262, for consumers in Northern Ireland
Official source
GOV.UK: hiring a car, what to watch out for
Checked 2026-10-23
What the source says: “The excess amount is the most that you will have to pay if the car is damaged. The deposit is what you must make available on your credit card / Check the Collision Damage Waiver (CDW). This is the 'insurance' that usually comes as standard with the rental. It usually doesn't cover everything and will often exclude items such as damage to tyres or glass. / If you paid by credit card, and something went wrong with the rental, especially if it was a misrepresentation or breach of contract, make a claim with the credit card provider under section 75 of the Consumer Credit Act.”
Six questions to ask at the counter
Tick each one as you get an answer. Your ticks stay on this device, so you can carry on the same sheet tomorrow.
The excess is what you pay yourself, and the standard waiver often excludes tyres and glass.
In the EU and Ireland it is compulsory and should already be included.
The deposit sits ring-fenced on your card, so you cannot spend it.
If you have independent cover, the rental company takes the repair cost off your deposit and you claim it back.
Some insurance policies set a maximum reporting time, and a late report can void the cover.
You need it if the counter tries to add extras after you sign.
The printed sheet has the same six questions and the cover types above, so you can take it to the desk without this screen.
Your card and your own policy
Whether your own policy or your credit card covers the rental is decided by your insurer or your card issuer, not by the rental company. Ask them in writing before you rely on it, and pay by credit card if you can.