Does Car Hire Excess Insurance Cover Breakdown?
Short answer: usually no. Car hire excess insurance is designed to cover the amount you would otherwise have to pay to the rental company if the hire car is damaged or stolen — that amount is called the “excess” or “deductible.” Breakdown cover (also called roadside assistance) is a different product: it pays for help when a vehicle fails mechanically or suffers an incident that leaves it immobile. They serve different purposes and are not interchangeable, although there are exceptions and add-ons you need to watch for. This article explains the differences, shows realistic costs, walks through common scenarios, and gives practical steps to make sure you aren’t left with an unexpected bill when a problem happens.
What is car hire excess insurance?
Car hire excess insurance reimburses you for the excess you would be charged by the rental company if the rental car is damaged or stolen. When you sign the rental agreement you’ll usually be offered Collision Damage Waiver (CDW) and Theft Protection, but these products nearly always come with an excess — the amount the renter is responsible for before the insurer or rental company covers the rest. Excess insurance is typically bought as a separate policy to reduce or remove that excess liability.
Key points about excess insurance:
- You’re paying to protect the refundable or non-refundable excess charged by the rental company — common excesses range from £500–£2,000 (about $600–$2,400) depending on the vehicle and location.
- Excess insurance usually reimburses you after you’ve paid the excess to the rental company and submitted a claim with your excess insurer.
- Policies vary: some cover tyres, windscreens and underbody damage; many exclude them. Some cover loss-of-use charges and administrative fees, others do not.
- Excess insurance is often cheaper than buying the rental company’s zero-excess option. Typical standalone prices range from £5–£15 per day (about $6–$18), or cheaper if bought as an annual policy.
Example: If you rent a car with a £1,500 excess and the rental company charges you that amount after a minor accident, an excess insurer would reimburse you the £1,500 (minus any policy excess or exclusions) once your claim is validated.
What does breakdown cover include?
Breakdown cover — sometimes sold as roadside assistance, emergency roadside service, or breakdown rescue — helps when your rented vehicle becomes immobile. It can include:
- Roadside assistance: a mechanic/technician comes to your location to attempt a fix.
- Recovery or towing: if the vehicle can’t be fixed on the spot, it’s towed to a nearby garage or rental company depot.
- Onward travel: transport for you and passengers to your destination or accommodation (sometimes a hire car or alternative transport is provided).
- Home repatriation: returning you to your home city or country if the repair is not possible (usually available on higher tiers).
- Key services: assist with lost keys, broken keys or being locked out (often at extra cost).
Breakdown cover is typically sold as either:
- A service provided by the rental company (often included or offered as an optional extra at the desk).
- A national provider’s single-trip or annual policy (e.g., AA, RAC, AAA equivalents) that you can buy for the car if allowed by the rental agreement.
- Included with some credit cards or travel insurance products (but check the small print— many cards do not cover rental cars outside your home country, and coverage may be limited to your own vehicle).
Costs for breakdown cover vary widely. A typical roadside assistance add-on from a rental company might be £5–£20 per day, but a specialised provider can be as little as £2–£10 per month for annual cover. One-off callouts in Europe might cost £60–£200 depending on the nature of the job and location.
Does excess insurance actually cover breakdowns?
In most cases, no — excess insurance does not cover mechanical breakdowns. Excess insurance is a reimbursement policy for collision, theft and damage claims that trigger the rental company’s excess charge. If a vehicle suffers a mechanical failure that is not the result of an insured collision or theft, the rental company will typically handle repairs under their own policy, and they may or may not charge you. Whether you have to pay anything depends on the rental company’s terms and the cause of the breakdown.
Common scenarios and how they are usually treated:
- Mechanical failure due to pre-existing defect: Rental companies should not make you pay for repairs caused by a pre-existing fault. You should refuse to accept a car with obvious defects and document the condition at collection. If a breakdown occurs from a pre-existing problem, you should not be liable for the excess in most jurisdictions — but you must follow the rental company’s fault-reporting procedure.
- Breakdown caused by misuse (e.g., running out of oil, driving through water, off-road use when prohibited): The rental company may consider this the renter’s fault and could charge for damage and excess. Excess insurance may or may not cover this depending on the policy wording; many exclude reckless or negligent behaviour.
- Breakdown after a collision: If the vehicle needs towing or repairs after an accident where the excess applies, you may still be liable for the excess. Excess insurance that reimburses collision excess would usually cover the excess payment you make in this case, but it doesn’t directly pay for the breakdown recovery costs unless explicitly stated.
- Tyre, windscreen or underbody failure: Many excess insurers specifically exclude tyres, windscreen, glass, tyres and undercarriage damage. If those are damaged and the rental company charges you, your excess policy might refuse the claim unless you bought a policy that includes such cover.
Some excess insurers offer optional roadside assistance or include some recovery costs as part of their premium — you must check each policy carefully. If an excess insurer includes roadside assistance it’s usually a limited service (callout only, no onward travel) and it might be a third-party arrangement rather than a full breakdown policy.
Common exclusions, real-life examples and tricky situations
Understanding exclusions is crucial. Below are common exclusions and real-life examples so you know what to expect.
- Pre-existing damage not reported at pickup: If you accept the car without noting existing scratches or issues and later try to claim, the rental company may hold you responsible. Always inspect the car, take time-stamped photos or video and ensure the damage is recorded in the rental agreement.
- Wear and tear and maintenance issues: Items like tyres, brakes, clutch or battery wear are often excluded from excess and breakdown policies. If a tyre blows due to wear and tear, the renter may be charged — some excess policies exclude tyre damage.
- Driving off-road or on banned roads: If you take a rental where off-roading is prohibited and a mechanical failure happens during that prohibited use, insurers and rental companies will likely decline cover.
- Negligent acts like running out of fuel or using incorrect fuel: Some roadside assistance products will recover you if you run out of fuel but will charge for fuel supply. If you use the wrong fuel and damage the engine, most insurers will exclude that.
Real-life example 1: Broken down in Spain
Jane rented a compact car in Malaga. On day 4, the engine warning light appeared and the car lost power. The rental company’s roadside assistance recovered the car to a local garage. The fault was traced to a faulty turbo (pre-existing issue). Jane was given a replacement car. The rental company did not charge her the £1,200 excess and she did not need to claim on excess insurance because the breakdown was the rental company’s responsibility. Jane had taken photos at pickup and had the pre-existing fault recorded on collection.
Real-life example 2: Tyre damage in Italy
Tom hit a sharp object on a narrow road and damaged a tyre and wheel rim. The rental company charged him €450 to replace the wheel and €900 as part of damage fees plus an excess of €1,000. Tom’s excess insurer reimbursed the €1,000 excess but refused to cover the wheel replacement because the policy excluded tyres and alloy wheels. Tom ended up paying the rim and wheel fee of €1,350 himself.
Tricky situation: Breakdown after an accident where a third party is at fault
If another driver hits your rental car and that driver is at fault, the third party’s insurer should cover repairs and the rental company shouldn’t apply excess to you — but in practice the rental company often charges the excess initially and expects you to pursue reimbursement from the third party. Your excess insurer will usually reimburse the excess, and then they will seek recovery from the other party’s insurer. This process can take weeks or months.
Costs and a simple price comparison
Costs vary by country, vehicle type, trip length and policy provider. Below are realistic sample figures you’ll commonly see. Use these figures for comparison — your actual quotes may vary.
| Cover Type | Typical What It Covers | Common Exclusions | Typical Cost (Per Trip / Per Day) |
|---|---|---|---|
| Rental company CDW with excess | Collision and theft cover subject to excess (sometimes includes basic roadside service) | Tyres, windscreens, undercarriage, driver negligence | Often included in rental; excess typically £500–£2,000 ($600–$2,400) |
| Third-party Excess Insurance (standalone) | Reimburses excess paid to rental company after damage/theft | Wear and tear, tyres/windscreen often excluded; misuse/negligence | £5–£15/day ($6–$18); annual policies £30–£120 ($35–$145) |
| Breakdown / Roadside Assistance | On-site repair, towing, onward travel, key assistance | Some plans exclude certain countries, fuel misuse, off-road recovery | Rental company add-on £5–£20/day ($6–$24); annual cover £30–£150 ($35–$180) |
| Combined Excess + Roadside | Reimburses excess + provides basic roadside assistance | Varies per provider — watch for small print | £8–£25/day ($10–$30) or £80–£220 annual ($95–$270) |
| Credit card / travel insurance add-on | May cover some damage/theft or roadside if conditions met | Usually secondary cover; often excludes certain countries and vehicle types | Often “free” with card, but with restrictions; supplementary travel insurance £40–£150 ($50–$175) |
Additional typical charges you might encounter:
- One-off roadside callout fee (if not covered): £70–£150 ($85–$180).
- Towing a vehicle long distances: £150–£600 ($180–$720) depending on location and distance.
- Administrative charges from rental company for filing a damage report: £25–£80 ($30–$95).
Cost example: A 7-day rental with a £1,200 excess
- Rental company zero-excess option: £70–£150 extra (one-off) for the rental period.
- Third-party excess insurance: £25–£80 for the 7 days.
- Basic roadside cover via rental company: £35–£140 for the 7 days.
- Combined third-party excess + roadside: £45–£200 for the 7 days.
Tip: Buying a specialist annual excess policy can make sense if you rent frequently. Annual policies often work out cheaper if you rent more than three or four times a year.
How to get the right protection and how to claim
Choosing the right cover means understanding two separate risks: damage/theft (excess) and immobilisation (breakdown). Follow these steps to avoid surprises and to make claims smoother if something goes wrong.
Before you rent
- Read the rental agreement and check what is included: CDW, theft protection, excess amount, and what the rental company says about roadside assistance.
- Inspect the car carefully at pickup: take clear, time-stamped photos or video of all sides, tyres, bonnet, boot and inside. Have the agent sign off on any existing damage.
- Decide whether to buy the rental company’s zero-excess option or a third-party excess policy. Compare costs for the actual trip rather than impulse buying at the desk.
- Check if your credit card or travel insurance already offers any cover — but read the exclusions carefully (many cards exclude loss/damage in some countries or vehicles, or require you to decline the rental company’s CDW to be active).
- Consider buying an add-on breakdown cover if the rental company’s roadside assistance is limited or expensive.
During the rental (if something goes wrong)
- Contact the rental company immediately for guidance — they usually have procedures and approved networks for recovery and repairs.
- Take photos of the scene and the vehicle before any repair work is performed if it’s safe to do so.
- If there’s an accident, call the police where required and get a police report; get contact details of other parties and witnesses.
- Keep all receipts — towing, repairs, accommodation, replacement transport — these are essential for claims.
How to claim excess insurance (step-by-step)
| Step | What to do | Documents to collect | Typical time to resolution | Tips |
|---|---|---|---|---|
| 1. Notify rental company | Report incident immediately and follow their instructions for recovery/repairs | Rental agreement, incident report, agent contact details | Immediate action; documentation prepared same day | Ask for a written or emailed incident reference number |
| 2. Pay excess (if charged) | Rental company may charge the excess amount at the desk or take a pre-authorisation | Credit card receipt, invoice showing excess payment | Immediate | Take a copy of the invoice and payment receipt |
| 3. Contact your excess insurer | Notify insurer promptly and begin claim process | Photos, rental agreement, damage report, payment receipt | Claims acknowledged within 7–14 days; payout 2–8 weeks | Submit a complete claim pack to speed up repayment |
| 4. Provide supporting documents | Answer insurer’s requests (e.g., police report, repair invoices) | All invoices, police report, written confirmation from rental company | Dependent on insurer investigation (2–12 weeks) | Be proactive; follow up regularly |
| 5. Recovery from third party (if applicable) | Insurer may pursue the third party’s insurer to recover costs | Third-party details, police report, insurer correspondence | Often months if recovery needed | Keep copies of all correspondences; your insurer handles recovery |
Common pitfalls when claiming
- Missing or incomplete documentation: photos and signed vehicle condition forms are the most important.
- Not following the rental company’s incident notification process: insurers often require the rental company’s report.
- Assuming coverage for tyres, windscreens or keys when it’s excluded: check policy wording and buy extra cover if needed.
- Buying duplicate cover without checking which one applies first: eg. some credit card covers are secondary to rental company CDW.
Practical tips to reduce the chance of being left out of pocket
- Take a short video of the car at pickup, narrating the mileage and fuel level. This is stronger evidence than photos alone.
- Keep the rental company’s incident reference number and email confirmations — many disputes hinge on proof of prior communication.
- Buy annual excess insurance if you rent multiple times a year — it often pays off after just a few rentals.
- Consider a combined product only if it clearly includes both excess reimbursement and robust roadside assistance — check the fine print for country restrictions and liability limits.
- If a breakdown occurs in a foreign country, keep receipts in the local currency and get an itemised invoice; you’ll likely need these for a claim and conversion may be necessary.
Final thought: Always read the product disclosure statement. The biggest cause of unhappy renters is the assumption that two very different protections are the same. Excess insurance reimburses you for a payment relating to damage or theft; breakdown cover gets you back on the road. If you want both sorts of protection, either buy a combined policy that explicitly includes both, or buy separate excess insurance plus a reliable roadside assistance policy.
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