Coverage & liability · Travelers + trade
Excess reimbursement
Also called excess reimbursement insurance, excess insurance, excess waiver insurance
What it means
Excess reimbursement is insurance bought from a third-party insurer, not the rental company. If the car is damaged, the rental company charges your excess (often from the deposit), and you then claim that amount back from the insurer. Some policies also cover items the rental company excludes, such as tires and glass.
Why it matters
It can cost less than the counter's excess reduction, but the rental company still holds the full deposit and you pay first, then claim. Make sure your card limit covers the deposit.
Wording by region
Most common in the UK, Ireland, Australia and New Zealand. In the UK it's often sold as "car hire excess insurance" or an "excess waiver."
Related terms
- Super CDW / excess reductionAn optional upgrade that cuts your excess, often to zero, on top of the basic damage waiver.
- Deductible vs excessSame thing, two words: the most you pay toward damage or theft of the rental car before the rental company's waiver covers the rest.
- Security depositAn amount the rental company holds on your card at pickup and releases after the car comes back without new charges.
- Tire and Glass Protection (TGP)Optional cover for damage to tires, windows and the windshield, which basic damage waivers often exclude.
Also related Standalone rental car insurance