By Clare Yates
6 min read
The short answer is no, travel insurance doesn’t usually include any cover for hiring a car abroad. Instead some level of car insurance is typically included in the hire costs of your rental car. This is likely to be basic cover, plus cover for if the car is stolen. You can take steps to boost that basic cover, which we’ll look at in a moment.
But even though travel insurance doesn’t include car insurance, it will cover some driving-related risks, like medical costs or personal accident cover if you’re injured abroad. So although we recommend that you always get travel insurance before going abroad, it could be even more important if you’ll be driving, due to the extra risks that creates.
Your travel policy might also cover you for the reimbursement of a pre-booked hire car if you have to cancel or cut short a trip due to reasons set out in the policy. It’s yet another reason why travel insurance is a must-have when travelling abroad.
How can I get extra cover when hiring a car abroad?
You can of course simply go with the basic cover that’s usually included in hire car agreements. But one thing to watch for here is the excess included within the agreement. You may face a hefty excess bill if there’s damage to the car, or if it’s stolen. According to the government’s Money Helper website, expect anything from £500-£1,500.
When you hire the car, or go to collect it, the hire firm may try to push expensive ‘top-up’ insurance to remove that excess. They will call it something like ‘super collision damage waiver’, ‘deductible cover’ or ‘non-waiver cover’, and it reduces or removes your liability to pay the excess. These policies can be very expensive. According to Martin Lewis, Money Saving Expert, they can be as much as £25 a day if you buy cover from the hire company.
The good news is that you can shop around online before your trip for a standalone excess car insurance policy for as low as £2 a day instead. Plus, these policies also cover things that aren’t typically in the top-up insurance offered by car hire firms, such as tyre damage or lost keys. If you do damage the car, you pay the rental company’s excess, then claim it back through your excess policy.
What about motorcycles, scooters and e-bikes?
Similar principles apply when it comes to insurance for two wheels abroad. You’ll need to look carefully at what’s covered, the standard excess amount, and whether you should take out separate insurance on top of the cover included with the rental.
But there is a big difference in terms of how your travel insurance might cover you for any injuries sustained in an accident. Some travel insurers do not cover you if you have an accident on some types of bike.
In the case of at least one leading insurer, they only cover claims arising from you riding a motorcycle up to 125cc, and only if you have the correct licence and are following local safety laws. What’s more, their cover completely excludes accidents and injuries on e-scooters, e-bikes, quad bikes, ATVs and Segways.
Bike accidents involving UK holidaymakers abroad are unfortunately all too common. Make sure you are protected and, if in doubt, confirm with your insurer so you know exactly where you stand.
What’s the best way to hire a car abroad?
Insurance is just one thing you need to get right when hiring a car abroad. Let’s go back to basics now and look at the actual process of hiring a car.
Sorting your rental before you go is almost always easier and cheaper. Rocking up at the rental desk after a long flight often means paying more, having fewer car choices and agreeing to extras you might not really need.
Planning in advance gives you time to compare companies, read the small print and work out exactly what cover and extras you want – so you’re not deciding with a queue of tired travellers behind you.
But do make sure you have everything you need when you go to collect the car. You’ll usually need:
A valid UK driving licence - usually you’ll need to have held it for at least a year.
A credit card in the name of the booking.
An International Driving Permit (IDP) if the country you’re visiting requires one.
You may be asked to show your passport or an ID card.
Tip: It’s a good idea to print off your own driving licence record, and while you’re at it, grab a code from the DVLA’s handy ‘share driving licence’ service. It’s free, takes a few minutes online and is valid for 21 days. If needed, the rental company can use it for one-off access to your driving history.
Paying for your hire car abroad
It can be a good idea to pay with a credit card in the main driver’s name. Most rental companies require this for the security deposit, and it can give you extra consumer protection.
The benefit of paying by credit card is that, under Section 75 of the Consumer Credit Act, purchases between £100 and £30,000 are covered if something goes wrong, like the car hire firm going bust. This applies even if you only put down part of the balance using your credit card, for example paying the deposit.
Also, if you get the option, it may be worth paying in the local currency. Choosing pounds on the card machine might sound easier, but it could mean a worse exchange rate.
Before you drive off: quick hire car checklist
A few minutes of checking now can save hours of arguments later:
Inspect the car and take clear photos or a video of any damage.
Make sure all existing damage is noted on the rental agreement.
Get familiar with the controls: indicators, headlights, even the fuel cap release.
Check your insurance level and aim for the most comprehensive cover you can get.
Confirm any mileage limits.
Keep an emergency breakdown or accident number handy.
Keep fuel and toll receipts in case of later disputes.