Europe is a large and diverse continent. Although much of Europe now forms part of the European Union, the position with respect to European car rental insurance may vary by the country of rental and the company being used.
In general, many (though not all) cars rented in Europe will come with some degree of insurance included in the rental price. This differs from the position in some countries such as the USA, where the rental price may include little or none.
The European car rental insurance that is included in the rental price will vary and it should be thought about carefully.
To begin with, in the UK rental cars must have included by law, unlimited third-party liability insurance. This means that anyone who suffers injury or damage to their property because of the rental car will be able to claim and a court could potentially make unlimited awards. In other countries the third-party cover may be capped at a maximum payout level that’s far too low given the size of potential court awards.
Another aspect of European car rental insurance is CDW (collision damage waiver). This is what provides cover for damage caused to the rented car itself. In general, the CDW cover provided by a car rental company will exclude damage caused to several easily damaged areas of the vehicle – usually including the wheels, tyres, undercarriage, roof and windows.
It is also likely to be the case that the car rental company’s policy will carry something called ‘excess’. The excess is a stated financial amount that the renter will have to pay towards the cost of an accident even if they have the rental company’s insurance in place. It works simply. If the excess is set at 750 pounds (and typically it will be between 500 and 1500 pounds) and there is an accident resulting in 1000 pounds worth of damage, then the renter will have to pay the first 750 pounds of that 1000. If the damage is only 500 pounds, the renter will need to pay it all.
For all these reasons, many people taking out European car rental insurance consider supplementary insurance to increase their cover. There are two options for this. The first involves purchasing additional ‘top-up’ insurance from the car rental company. This can reduce the excess and increase cover to normally excluded areas of the car, but it also is typically far higher in cost than comparable insurance sourced elsewhere.
It is also possible to purchase European car rental insurance from direct insurance providers on the Internet. Their prices are typically far cheaper than those of the car rental companies and may offer superior cover. They work on the basis that even if you have CDW included in your car rental price but are subsequently charged the excess or for damage to excluded areas of the rented vehicle, then the direct insurance policy would then reimburse you. They have a range of insurance products for rental cars that will meet most needs and their prices are attractive. It may be sensible to have a look at their offerings.