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Insurance Terms | Excess Protection | Top Up Insurance | Collection Desk Hard Sell | Security Deposit | Breakdown | FAQs
Car rental insurance is confusing. Many of us don’t hire cars regularly and car rental providers often make things more confusing by using different phrases for the same insurance product. For a more in-depth explanation of insurance, head over to the Complete Car Hire Insurance Guide.
Here at Zest Car Rental, we’ve tried to make our quick summary to car rental insurance as clear and easy to understand as possible. Remember, if you’re ever in any doubt about car rental insurance when you collect your car, contact us immediately. DO NOT sign anything unless you understand EXACTLY what you’re agreeing to.
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Common Insurance Terms
Collision Damage Waiver (CDW)
Without CDW, you could be liable for the full cost of the rental vehicle. You would have to pay a contribution to repair costs up to an agreed level of ‘excess’ which can be as high as £2,000, regardless of who is at fault.
Having CDW in place, provides basic cover and it reduces your liability in a collision. It means you wouldn’t have to pay the full cost of any repairs.
In addition, CDW generally does not cover certain areas of the car such as the windscreen, wheels, undercarriage and roof. If these parts were damaged individually, outside a collision, the provider would charge you the excess. For example, if there was a windscreen chip or a flat tyre, the CDW would not cover these.
If you wish to cover damage to these parts, you should purchase our additional Top-up Insurance. Please note that due to stipulations from the third party this is supplied through, certain countries of residence are excluded from eligibility and cannot purchase this cover.
Remember, CDW isn’t an insurance in its own right. It’s just a variation of the rental terms where the provider will waive the terms that make you liable for:
- Loss or damage to the vehicle, whether or not it’s your fault
- The cost to repair or replace the vehicle
- The loss of income to the provider while the vehicle is being repaired
CDW is always included when booking with Zest Car Rental with either no insurance excess or Excess Reimbursement Insurance (more on this later). Some other firms or brokers offer CDW and theft waiver but with a huge excess.
Theft protection/Theft Waiver (TW)
An equivalent of CDW, but protects against theft if the vehicle is stolen. It DOES NOT cover theft of items within the vehicle – your holiday/travel insurance should cover this. Theft as a result of negligence, such as leaving the keys in the ignition is NOT covered.
TW is always included when booking with Zest Car Rental with either no insurance excess or Excess Reimbursement.
Third Party Liability and Public Liability
Covers injuring other people or destruction of property. Essentially the same as with standard car insurance.
This is always included when booking with Zest Car Rental.
NB All of the above, except the additional top-up insurance, are provided by the car rental provider– NOT by Zest Car Rental.
Excess & Deductible
“What is the car hire excess?” is one of the most common questions we are asked. The excess (sometimes called the ‘deductible’) is the amount you pay the provider if the car has been involved in a collision or has been stolen.
As with the excess on your own home or car insurance policies, the excess is the first part of any successful claim you are liable for. In some cases, the excess can as high as £2,000– just as well we cover that for you!
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No insurance excess & Excess Reimbursement Insurance (ERI)
As mentioned above, your hire car comes insured to a certain standard with Collision Damage Waiver (CDW) and Theft Waiver (TW) included. This can collectively be referred to as Loss Waiver (LW).
CDW is designed to cover damage caused in a collision and not single-vehicle damage. It does not cover damage caused by driving into a wall or negligence. Think of it as a very basic 3rd party policy.
However, individual damage to parts such as wheels, tyres, and glass parts aren’t normally covered. This is why you can purchase additional top-up insurance when you book a car with Zest Car Rental.
When you hire with us, some deals include Collision Damage Waiver and Theft Waiver with no insurance excess (zero excess liability). Where we cannot negotiate this with the provider, we offer Excess Reimbursement Insurance (ERI) which covers the excess instead. Therefore, there will always be zero excess liability when hiring through Zest.
If hiring a car through another firm, make sure you check what’s included in the price. Even if it says CDW and TW are included, it is very likely that a large excess is still applicable.
Zero Excess Claims Procedure:
If your rental vehicle package includes no insurance excess, and you’ve had an accident, you MUST follow these steps:
- Inform the provider IMMEDIATELY (if you can’t reach them, contact Zest Car Rental).
- Complete a damage report, take photos, find witnesses etc.
- Obtain a Police Report IMMEDIATELY – THIS IS ESSENTIAL.
- If a third party is involved, details of the third party MUST be obtained.
Failure to do any of these could invalidate the insurance and leave you liable as the provider will assume you’ve been negligent.
Excess Reimbursement Insurance – ERI
Excess Reimbursement Insurance (ERI), also known as excess protection or excess waiver, protects the excess amount should your hire car be damaged or stolen.
In the event of a claim, you simply pay the excess amount to the provider, then claim it back through the insurance policy upon your return home. This is actually a very simple, stress-free process and only requires you to follow procedure.
ERI Claims Procedure:
Assume your rental vehicle package includes ERI and you’ve had a traffic collision. You MUST follow these steps:
- Inform the provider IMMEDIATELY (if you can’t reach them, contact Zest Car Rental)
- Complete a damage report, take photos, find witnesses etc.
- Obtain a Police Report IMMEDIATELY – THIS IS ESSENTIAL. Whatever damage is done to your vehicle with any kind collision, you need a police report as evidence.
ERI has nothing to do with the provider– it is supplied by Zest Car Rental’s insurance partner Questor Insurance Services Ltd. This means the provider WILL charge you for the excess if the vehicle is damaged. You will have to pay this and then claim back eligible costs via the ERI when you return home. This is why it’s important to obtain a police report in any accident to ensure you are held liable only for the appropriate damage.
As stated above, with ERI it is very easy to claim back but if you have any concerns or questions during the process, please contact us immediately so we can assist you.
NB You will still be required to leave a security deposit.
Exceptions
The following instances/scenarios are not covered by either the ERI or Zero Excess policies:
- Gross negligence – Driving without due care and attention, drink driving, driving off-road etc.
- Negligence – Misfuelling, loss or damage to car keys etc.
- Other – Tyre and wheel damage, interior damage, damage to the roof, damage to the underside of the vehicle, damage to the glass parts of vehicle (including the windscreen), wing mirrors, locks and aerial.
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Top-up Insurance
You can now purchase Top-up Insurance through our travel agents.
Top-up Insurance is the top level of cover available. It provides reimbursement cover against any loss or damage to the vehicle not covered by the standard insurance. This includes damage to the wheels, tyres, glass, under body, roof, keys, locks or loss due to misfuelling, lock outs, and battery failure. It also covers mobile phone charges, curtailment, car-jacking, and road-rage incidents.
You have 3 options when it comes to Top-up Insurance:
- You can decline it. If you do subsequently damage any uninsured parts of the vehicle or if an uninsured part is stolen, you will be charged.
- You can purchase Top-up Insurance through Zest Car Rental. This offers complete peace of mind. This will protect you completely except in cases of negligence or other rare circumstances which are detailed in the policy terms and conditions.
- You can purchase the provider’s additional insurance when you collect the car. This can cost up to £20 per rental day.
If in any doubt, call us prior to signing any forms upon collection so we can clarify the situation for you.
The Collection Desk Hard Sell
You’ve arrived at the collection desk, are going through the paperwork, and the agent says, “That insurance isn’t valid” or “You need to take out our insurance”. I know many of you have heard this. But why?
Car rental providers may not recognise third party insurance policies because the policy isn’t provided by them or connected with them in any way. Third party insurance such as Top-up Insurance protects you the customer and not the car rental provider. Top-up Insurance is valid providing you’ve met the terms and conditions of the policy. If you find yourself in this situation, you should contact Zest Car Rental immediately.
Security Deposit
A security deposit is required upon collection to release the car. This is so the provider has some guarantee the car will be looked after. You will need a credit card upon which a security deposit will be authorised.
Sometimes a provider will say they won’t take a deposit if you purchase their insurance. If you have Top-up Insurance we’d recommend you decline this as you’re simply insuring yourself twice for no additional benefit.
The security deposit (sometime confusingly called an excess) is there to cover damage to parts of the vehicle not covered by the standard insurance. If you take out the provider’s insurance at the collection desk (at an inflated cost) the security deposit will sometimes be reduced or removed completely. Bear in mind however just how costly the provider’s insurance could work out to be.
The security deposit is always refunded. Your insurance won’t be.
Again, if you find yourself in this position, call Zest Car Rental and we will clarify the situation for you.
Breakdown
Breakdown assistance is always included when you book with Zest Car Rental and is free of charge.
However, in some cases, a charge may be applied if the breakdown is a result of negligence – misfuelling or ignoring a warning light etc.
The provider may also charge if the client requests breakdown assistance for a puncture as this is considered something any driver should be able to manage themselves. Always phone the provider to check.
If you are taking the vehicle into a different country (cross border), providers will provide breakdown assistance to some extent. You may be required to pay towards the cost of recovery or the provider may cover all costs to get their vehicle back. Always check with the provider what the terms are if you’re driving to another country.
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Car Rental Insurance FAQs
What is Top-up Insurance and what does it cover?
Top-up Insurance is the top level of cover available. It provides reimbursement cover against any loss or damage to the vehicle not covered by the car rental insurance. This includes parts such as wheels, tyres, glass, under body, roof, keys, locks, misfuelling, lock outs, and battery failure. Top-up Insurance also covers mobile phone charges, curtailment, car-jacking, and road-rage incidents.
Am I better off buying an annual car Rental insurance policy?
This depends on how often you hire a car. Many annual policies cost over £40 so if you only hire a car for 14 days a year, you’re better off purchasing Top-up Insurance through Zest Car Rental.
What does the insurance actually include?
This can vary from car to car and provider to provider. When you have your quote, click the ‘View Rental Conditions’ link underneath each vehicle. Look at the heading marked Deposit Requirements and you will find more information regarding the insurance.
What do I do if I am offered additional insurance when I collect the hire car?
Many providers try to sell additional insurance when you collect the car. This will cover damage to items which are not included in their standard insurance such wheels, tyres and glass. Taking this insurance is entirely at your discretion. If you have already taken out Top-up Insurance there is NO point in taking out additional insurance.
Why does the car rental provider say my Top-up Insurance is not valid?
Don’t worry, it is valid. The Top-up Insurance protects you first and the provider second. The provider would rather you buy their insurance which protects them first and you second. Our main concern is looking after our customers, if you have any issues regarding this, contact us immediately.
I took out Top-up Insurance and bought the provider’s insurance as well, what should I do?
Unfortunately, it is almost impossible to refund the cost of insurance once you’ve used the car for that period even if you didn’t need it as you’ve signed a contract stating you agree to the terms.
Why can’t I get a refund on my insurance when I didn’t make a claim?
Think of your own car insurance policy. If you use your own car for a year and don’t make a claim, do you ask Aviva, Elephant, Admiral, or Direct Line for a refund? The policy has been in place and there for you to claim on should it have been necessary so it’s not possible for this amount to be refunded.
Why do I need to leave a security deposit?
Imagine you’re renting out your own car. Let’s pretend it’s a 2017 Ford Focus worth £12,000 and you hire it out for a week for £131. How much would you want the customer to leave as a deposit?
All the providers we operate with require a security deposit to be authorised on the main driver’s credit card upon collection.
This is to cover the provider for any parking or speeding fines, uninsured parts of the vehicle, if a claim is made when the insurance has been invalidated, and to ensure the safe return of the vehicle.
Why do I need a credit card for the deposit?
Depending on which firm you rent through, a deposit can be as high as €3,000. Do you want to stick that on your debit card? Credit cards also provide customers with a high level of protection in case of disputes and are usually cheaper with regards to currency conversions. Find out more about this here.
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Don’t forget…
If the insurance/car hire forms are in a foreign language for any reason, ask to see the English equivalent. If this isn’t possible, contact us at once before signing them.
If, when you collect your car, the terms/insurance seem different to what you were expecting, call us immediately so we can clarify things for you. DON’T leave it until you get home as trying to resolve an insurance (or car hire) issue after you’ve used the service is almost impossible.
With us, CDW ALWAYS means Zero Excess or Excess Reimbursement so you won’t be out of pocket. Other firms will still charge an excess which can be very expensive.
If you have any other questions regarding car rental insurance, please get in touch or read our terms and conditions.
Prices and information correct at the time of writing.
When hiring a car in Portugal but using in Spain how do I cover breakdown insurance or is it covered when I book with Zest
Hi Paul,
At Zest, we only work with providers that include breakdown assistance. However, when taking vehicles out of the country from which they are hired, full breakdown service may not be available.
Feel free to contact us on 01362 852288 and we will do all we can to help you.
Kind Regards,
Nathan
Zest Car Rental
Do you offer car insurance only? I will be arranging a private hire in Peru of a 4×4 vehicle for one week – could you quote?
Hi John,
Sorry, we do not provide this service. Our insurance can only be purchased when you rent a car through Zest.
Thanks,
Jake
If you get involved in any Accident involving the hire car you state make a report. Does that mean the police have to attend any or all accidents to get this report or is it sufficient to exchange names and addresses and then attend a police station to report it? At the same time presumably you should call the hire company to advise them prior to continuing your journey or can it wait till later?
Hello Derek,
This would depend on the severity of the accident. If the police have been called to a serious accident then they will provide a report as part of this process. However, in the event of a minor collision then you would need to head to the nearest police station to fill out a form with the necessary information. We state on the rental voucher that in the event of an accident, you should call the car rental provider and also ourselves.
Kind regards,
Jessica
Zest Car Rental
Excellent Information, and very understandable, it’s the first time I have actually understood all the terminology re car hire, just about to book with Zest. Thanks
really good advice but each time i get my hire car the first thing they say is check for scratches
on the car, am i insured of this with top up insurance
Good morning,
Thank you for your comment. We would always recommend checking over the vehicle upon collection to ensure any pre-existing damage is recorded accurately. Top-up insurance does cover bodywork scratches, but if these are pre-existing and noted down before you drive away with the vehicle, then it will save you being blamed for the damage and having to submit a claim.
Should you have any further queries, please don’t hesitate to contact our Customer Support Team.
Kind regards,
Jessica
Zest Car Rental
I was pleased to read that all Zest car hire bookings are covered for road-side assistance. The last 2 x car hire companies that I booked with Zest (Locauto in Rome and Keddy in Southampton) advised me that their cars were not covered for road-side assistance (equivalent to AA or RAC help) and, not wanting to be stuck on the Italian motorway, I bought their extra policy to cover this. I would have thought that all reputable car hire companies would have had road-side assistance as a standard part of their service. Anyway, assuming that the car breaks down and I need to use the road-side assistance provided by Zest, how do I know which recovery company to use? Do I phone the car hire provider and then they organize it and I claim back any costs on the “Zest” insurance or is there a nominated Road-side assistance company for each country? How do I know which company to use? Due to my experience with Locauto and Keddy, I am less likely to pick these companies from the options provided by Zest when I book future cars.
Dear Mr Colbeck,
Thank you for taking the time to leave your comment. Upon collection of the vehicle, the representative should explain to you what to do in the event of a breakdown. The number for their approved company should be written on the rental agreement that you sign and keep a copy of. Should they tell you that breakdown cover is not included, we recommend that you contact us at the time so we can liaise with them on your behalf to resolve the matter.
The supplier will cover the charges resulting from mechanical issues. Should the breakdown be caused by negligent driving, then you will be liable for the costs incurred.
We operate 24/7 emergency telephone support so can be contacted out of normal office hours should you have any issues during your rental period.
Kind regards,
Jessica
Zest Car Rental
What a superbly well written comprehensive article on car hire insurance.
Thank you very much.
This is very informative, thanks
I always hire through Zest
thanks again
This resumee does NOT cover the following situations
a. Damage is done by someone else but it is not known WHO did it -e.g one comes back to the car in a car park and finds it scratched -possibly quite minor but nevertheless a scratch or dent. Does one still have to get a police report etc etc. I can’t imagine police in many countries wanting to be bothered!
b. A minor scratch occurs when the driver is driving e.g touching a bollard when parking or a stone or similar is thrown up on the road and hits the paintwork etc etc – i.e no other car or person is involved
What levels of insurance cover these situations (if any)
a. Excess reimbursment
b. Top up??
Good morning,
Thank you for your comment. In the first example given, you would need to obtain a police report- this means visiting the local police station and filling out a form to officially record the incident. Some insurance claims are invalidated without one. You’d also need to report the damage immediately to the supplier and ourselves. The top-up insurance would cover this type of damage.
In the second example, top-up insurance would cover both incidents.
Should you have any further queries, please don’t hesitate to contact our Customer Support Team.
Kind regards,
Jessica
Zest Car Rental
As a regular hirer, surely if vehicle has a mechanical or electrical breakdown, the car hire Provider is obliged and responsible to recover the vehicle and provide the client with another car, with no additional charge?
Good afternoon,
Thank you for your comment. All bookings through Zest include breakdown cover as standard, so yes, the supplier would arrange collection of the vehicle and supply you with an alternative. There are sometimes limitations applied to this when taking the vehicle into another country. If planning to do so, you should contact our Customer Support Team before booking to check what breakdown cover would be in place.
Kind regards,
Jessica
Zest Car Rental
In the article you say that CDW covers loss or damage to the vehicle, whether or not it’s your fault. However you then say “CDW is designed to cover damage caused in a collision and not single-vehicle damage. It does not cover damage caused by driving into a wall or negligence.” So in this instance CDW does not cover damage to the vehicle that (in the event of driving into a wall) is your fault. Is this correct?
Assuming it is – does your top up insurance cover this sort of incident?
Hi John,
Thank you for your comment. CDW typically covers collisions with other vehicles, either due to your own fault or the other party. Driving into a wall therefore would not be covered by CDW. If top-up insurance is in place, the cause of you driving into a wall would be assessed individually by the supplier of this insurance. It would be for them to decide whether the incident was caused by negligent driving or not. Negligent driving, such as speeding, driving under the influence of drugs or alcohol, or driving whilst using a mobile phone, would not be covered.
Kind regards,
Jessica
Zest Car Rental
Thanks for the reply Jessica. Can I therefore assume that an accident such as scratching a car on a wall whilst not being negligent (alcohol/drugs/phone etc.) would be covered by your top up insurance?
Hi John,
If it was decided that the damage was not caused by negligent behaviour then yes, the scratch would be covered.
Kind regards,
Jessica
Zest Car Rental
Could you please clarify your approach to principal driver’s age? I have used you before and your predecessor Economy Car Hire with no problems. Recently however upon seeking a quote I was told “no cars are available for someone 76 years or over” Could you clarify please? My date of birth is 09/03/1941. Is 75 the cut off point?
Good afternoon Arthur,
With regards to driver age, this is set by the rental providers that we work with, therefore this is somewhat out of our control. Should you see this message in future when looking to book your hire car, please contact our Support Team on 01362 852288 and we’ll do all we can to help you.
Kind regards
Shaun
Zest Car Rental
Why don’t you do annual insurance for people like myself who hire a car more then 2 weeks a year
Hi Gary,
An annual policy is something we are looking into providing in the future. We’ll be sure to let customers know once this product is available from ourselves.
Kind regards
Shaun
Zest Car Rental
Very informative. It would also be advisable to make sure that people check their hire car for any marks and/or damage before leaving the hire car compound (even in the dark) and take photos BEFORE driving off!
Hello Mike,
Thank you for the comment, we’re glad you find our post useful. We certainly would advise customers to take lots of photos of the car and record any pre-existing damage before signing any rental agreement and driving away. We covered what to do upon collection in part 3 of our Complete Guide to Car Hire which can be found here – https://www.zestcarrental.com/blog/2017/05/11/complete-guide-car-hire-part-3/.
Kind regards
Shaun
Zest Car Rental