One of the most confusing aspects of renting a car in Europe is the excess (also called a deductible). Even when you have Collision Damage Waiver (CDW) included in your rental, you may still be liable for a significant amount if the car is damaged. This is the excess — and understanding how to reduce or eliminate it can save you hundreds or even thousands of euros.
The excess is the amount you must pay out of pocket before your rental company's damage coverage kicks in. In Europe, standard CDW excesses typically range from €500 to €2,500 depending on the vehicle class and rental company. For luxury or larger vehicles, excesses can be even higher. When you pick up the car, the rental company will usually pre-authorise (block) this amount on your credit card as a security deposit.
Compare top providers and find the best deal for your trip.
Join smart travelers getting weekly car rental tips and deals — free.
Most major rental companies offer their own excess reduction product at the counter. This typically costs €10–€25 per day and reduces the excess to zero or a very low amount (e.g., €100). While convenient, buying SCDW at the counter for a two-week rental can add €200–€350 to your total cost.
Companies like RentalCover, iCarhireinsurance, and Allianz offer standalone excess policies that reimburse you if the rental company charges your card for damage. These policies typically cost €3–€8 per day — significantly less than buying at the counter. However, they work on a reimbursement basis: you pay the rental company first, then claim it back.
Some premium credit cards (e.g., Chase Sapphire, Amex Platinum, certain Visa Infinite cards) include car rental damage coverage. Always check whether your card covers rentals in your specific European destination, as exclusions for certain countries (notably Ireland and Italy) are common. Credit card coverage also typically excludes luxury vehicles, SUVs, and rentals longer than 30 days.
For most travellers renting in Europe, a third-party excess insurance policy offers the best balance of cost and coverage. Purchase it before your trip, decline the rental counter upsell for SCDW, and make sure you thoroughly document the car's condition at pickup. Keep all receipts and the rental agreement in case you need to file a reimbursement claim.
Rental agents are trained to sell excess waiver products at the counter. Simply state: "I have my own excess insurance and would like to proceed with the basic booking." Be polite but firm. They are legally required to give you the car with only the coverage included in your reservation. Do not let high-pressure tactics push you into duplicate coverage.
Bookmark this guide and check back before your trip — car rental prices and policies change frequently.
Find the best deal from top providers across Europe.
Data and regulations verified against official sources. Last checked 2026-04-27.
CDW (Collision Damage Waiver) limits your liability to the excess amount (typically 500-2,500 euros). SCDW (Super CDW) reduces this excess further, often to zero. CDW is usually included in the base rental price, while SCDW is an optional add-on costing 10-25 euros per day.
Yes, third-party excess insurance from providers like RentalCover or iCarhireinsurance is a valid and usually cheaper alternative. However, it works on a reimbursement model: the rental company charges your card first, then you claim the amount back from your insurer.
If you buy the rental company's own SCDW that reduces the excess to zero, they typically won't place a large hold. With third-party insurance, the rental company doesn't recognise it, so they will still block the full excess amount on your card.
Standard CDW usually excludes tyres, windscreen, roof, and undercarriage damage. Some SCDW products include these, but not all. Always read the fine print or ask the rental agent specifically about these exclusions before signing.
The hold typically lasts 2-4 weeks after you return the car, assuming no damage is found. In some cases, it can take up to 6 weeks for the hold to be released. Using a credit card (not debit) is strongly recommended to avoid cash flow issues.
Requirements vary by rental company in Tips. Most major agencies accept a valid driving license from your home country for short stays, but an International Driving Permit (IDP) is recommended as a backup, especially outside major cities. Check with your specific rental company before traveling.
At minimum, you need Collision Damage Waiver (CDW) and Third Party Liability insurance. Consider adding theft protection if parking in urban areas. Many credit cards offer rental car coverage — check your card benefits before purchasing duplicate coverage from the rental company.
Many European countries use toll systems for highways and motorways. In Tips, toll costs can add significantly to your trip budget. Most rental companies offer electronic toll transponders — ask at the counter. Budget an additional 10-20% of your fuel costs for tolls on longer trips.
The minimum rental age in Tips is typically 21 years, though some companies require drivers to be 23 or 25. Young drivers (under 25) usually pay a surcharge of 10-25 per day. Maximum age limits also apply at some agencies, typically around 70-75 years.
Cross-border travel policies vary by rental company. Most major agencies allow travel within the EU/Schengen area with prior notification, but may charge a cross-border fee. Some restrict travel to certain countries. Always declare cross-border plans when booking to avoid insurance invalidation.
Annual policies from providers like iCarhireinsurance or RentalCover cost 40-80 euros per year and cover unlimited rentals worldwide. If you rent a car even twice a year, this is dramatically cheaper than buying SCDW at the counter (10-25 euros per day). The policy reimburses your excess charge within 2-4 weeks of filing a claim with photos and receipts.
undefined
Say exactly this: 'I have my own excess insurance and would like to proceed with the basic booking.' Rental agents may imply your third-party policy is invalid or insufficient — this is a sales tactic. You have the legal right to decline any optional coverage. If the agent refuses to process your booking without SCDW, ask for a manager or contact the company's customer service directly.
undefined
If relying on credit card CDW coverage, save a screenshot of the specific policy terms on your phone before your trip. Some rental agents will claim card coverage is not accepted — having the terms readily available helps resolve disputes on the spot. Verify your card covers the specific country, vehicle category, and rental duration before travelling.
undefined
Country-by-country driving requirements, packing list, and emergency contacts — all in one PDF.
Free. No spam. Unsubscribe anytime.