Coverage & liability · Travelers + trade
Deductible vs excess
Also called deductible, excess, insurance excess, damage excess
What it means
The deductible (US and Canada) and the excess (UK, Ireland, Australia, New Zealand and much of Europe) are the same idea: the amount you're responsible for if the rental car is damaged or stolen. With a standard damage waiver, you pay up to that amount and the rental company absorbs the rest, subject to the waiver's exclusions. A lower or zero excess is usually sold as an extra.
Why it matters
It's the number that decides what a bad day costs you. Two rentals at the same price can carry very different excess amounts, and the excess is often what the security deposit on your card is based on.
Example
Example only: the excess is 2,000. Repairs cost 3,500. You pay up to 2,000; the waiver covers the remaining 1,500, as long as the damage isn't excluded.
Wording by region
North American customers search "deductible"; almost everyone else searches "excess." On niftirent, USD and CAD customers see "deductible"; everyone else sees "excess."
Related terms
- Collision Damage Waiver (CDW)An agreement where the rental company waives some or all of its right to charge you for damage to the car, usually above an excess. It's not insurance.
- Zero excess / zero deductibleCover where you pay nothing toward covered damage or theft of the rental car. Exclusions still apply.
- Super CDW / excess reductionAn optional upgrade that cuts your excess, often to zero, on top of the basic damage waiver.
- Security depositAn amount the rental company holds on your card at pickup and releases after the car comes back without new charges.
- Excess reimbursementA separate insurance policy that pays you back the excess the rental company charged you after damage or theft.
Also related Exclusions (rental cover)