60-second summary
Want to know more about van hire excess cover? Here’s your rapid rundown:
The excess on standard van hire cover can be high – up to £1,500. Van hire excess insurance is a separate product that allows customers to reduce how much they’d have to pay in the event of a claim.
Also known as super collision damage waiver or excess waiver insurance, it’s usually charged by the day. You can buy it separately online or from the van hire company.
Van hire excess insurance provides protections beyond standard van rental policies, but there are always exclusions. Check policy details carefully.
Cover typically starts from around £10.99 a day. Make sure you compare all the different levels of cover available to get the right policy for your needs.
Do I need van hire insurance?
Most companies will rent a van with insurance included in their standard rates. Your rental agreement will usually have some form of collision damage waiver and liability cover.
But if the van were damaged or stolen, you’ll be expected to pay an amount towards the cost of repairs or a replacement vehicle, even if the incident wasn’t your fault. This is called an excess and can typically be as much as £1,500 for van hiring.
This is obviously a lot of money, so most van hire companies will try to sell you extra cover when you pick up the vehicle to reduce the excess to a more affordable level, or even zero. This is known as van hire excess insurance.
Rather confusingly, it can also be referred to as super collision damage waiver or excess waiver insurance.
What is van hire excess insurance?
Van hire excess insurance can protect you from most excess charges if your rented van is stolen or damaged.
Excess insurance for van hire is usually charged per day, and you can either get it from the van rental company or an online provider. (Please note: you can’t compare van hire excess insurance with us).
If the van is stolen or damaged, you’ll be charged the full excess amount, which you can later claim back if you’re covered by insurance excess cover. Note that if you buy excess insurance from someone other than the vehicle hire company, you will typically have to pay the excess first, then claim it back from the insurance provider.
It’s entirely up to you whether you take out van rental excess insurance. But if an accident were to happen, you will have avoided shelling out higher excess charges by paying a small amount of money upfront.
What does van hire excess insurance cover?
Van hire excess insurance provides additional protection beyond standard van rental policies. It’s specifically designed to cover costs that might not be included otherwise.
Here’s what you can expect to be covered for with a standard policy:
Reimbursement for the excess amount (check your policy wording for limits)
Drivers aged between 21 and 85 (including additional drivers), though some providers will offer cover to older or younger drivers
Cover for up to 60 days
Damage to the tyres, windscreen, underbody and roof
Towing fees that the hire company might charge you following an accident.
What doesn’t van hire excess insurance cover?
While having van hire excess insurance can save you money if you have an accident or the vehicle is stolen or damaged, there are several reasons why you might still have to foot the bill for some – if not all – of the excess. You may have to pay if:
You broke the terms of your van rental agreement, like driving while drunk or leaving the van unlocked
You bought your excess insurance after you collected your rental vehicle
You used the vehicle for business – if, for example, you’re a plumber who hired the van as a replacement while your own van underwent repairs.
How much does van hire excess insurance cost?
Excess insurance for van hire policies typically start from around £10.99 a day, although can sometimes be found slightly cheaper. It’s essential to compare all the different levels of cover available to make sure you’re getting the right one for your needs.
Legal requirements for van hire and insurance
When hiring a van in the UK, there are specific legal requirements you must adhere to regarding insurance. It's crucial to understand these to ensure you’re compliant and adequately protected:
Minimum coverage: By law, all vehicles on UK roads must have at least third-party insurance. This covers damage to other vehicles, property and injuries to others. Most van hire companies include this in their rental agreements.
Driving licence: You must hold a valid UK driving licence. If you’re hiring a larger van (over 3.5 tonnes), you may need a category C1 licence. Some hire companies may also want to see evidence of any endorsements on a licence, such as speeding offences.
Age restrictions: Van hire companies often require drivers to be at least 21 years old, sometimes older. Check any age restrictions and costs before hiring.
Policy documents: Keep all insurance documents with you when hiring a van. This includes proof of insurance from the rental company and any additional cover, such as van hire excess insurance.
What else do I need to know about van hire insurance?
Van rental insurance can be confusing and difficult to fully understand. Here are some key things to know about van hire and insurance, before hiring a vehicle:
Be wary of headline prices: Some van rental companies will entice you with cheap advertised rates. However, look to see what is included in the basic price. Check the details carefully before you agree to the hire.
Read customer reviews: Look at customer testimonials and get recommendations from friends or family before you buy.
Bring a credit card: You’ll need to pre-authorise it with the van hire company for the value of the excess. If there is no damage, the van hire company will remove the pre-authorisation. If you have to pay the excess, you can then claim it back if you have an excess insurance policy.
Take photos of the van: Check the van and take photos of any existing damage before you sign the rental agreement. This helps to avoid any unnecessary charges.
Check your policy details carefully: Read the terms and conditions on your van-hire agreement thoroughly. Always check what’s not included as well as what is.
Looking to compare van hire quotes?
Compare the Market doesn't currently do van hire or excess cover comparisons. However, you can compare van insurance in minutes to see if you can save.
FAQs
When would I pay the excess on a van hire insurance policy?
If your rental van is damaged or stolen, you’d need to pay the excess as a contribution towards the claim.
If you have van hire excess insurance, this policy could cover the excess amount, allowing you to claim it back after paying it to the rental company. This means you won’t be out of pocket for the excess, as long as your claim is valid and within the terms of your excess insurance policy.
Can I get van hire excess insurance for more than one driver?
Yes, you can add multiple drivers to your policy as long as they’re named in the rental agreement. The policy holder must be the main hirer of the rental vehicle or else your excess insurance won’t be valid if you need to make a claim.
Can I get minibus excess insurance?
Yes, if you’re planning a trip with a large group, you can get excess cover for minibuses that are hired in the UK. Generally, if you’re hiring a minibus with nine seats or fewer, you can take out standard car hire excess insurance.
However, if you’re planning to drive a minibus, do check you’re permitted to do so on GOV.UK first, as there are a number of restrictions around this. For starters, you have to be at least 21 years old and have held a driving licence for at least two years.
Will van hire excess insurance cover me in Europe?
Some excess insurance for van hire policies cover only rentals in the UK, but others do include cover for time spent abroad. This is usually limited to no more than 14 consecutive days though.
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With more than eight years’ experience in writing and sub-editing content, Karen started her career in fashion before making the move to insurance. She now specialises in producing clear, engaging content that helps people make better financial decisions.
Karen’s areas of expertise include insurance products, such as car insurance, travel insurance and life insurance, as well as utilities such as energy comparison.
Stephen Maunder is an experienced personal finance editor, having spent more than a decade working for consumer print and online titles. He won several industry awards for his personal finance features at Which?, before becoming Deputy Editor at Compare the Market.
Amy helps make sure you get the best value when choosing insurance. Thanks to more than four years’ experience at Compare the Market, she understands what people look for, working closely with insurance providers to offer you deals and services that are fair, easy to understand and right for your needs.
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