If you regularly hire cars abroad or in the UK, you’ve probably come across two common types of car hire excess insurance:
- Annual policies
- Single trip policies
At first glance, the difference seems simple — one covers a single rental, while the other covers multiple trips throughout the year.
However, choosing the right option depends on:
- How often you travel
- How long your rentals are
- Where you travel
- The type of protection you want
- Your overall travel costs
In this guide, we’ll explain the differences between annual and single trip car hire excess insurance, how each works, and what travellers should consider before choosing a policy.
Quick Summary
| Feature | Single Trip Policy | Annual Policy |
|---|---|---|
| Covers one rental | Yes | Yes |
| Covers Multiple Rentals | No | Yes |
| Usually lower upfront cost | Yes | Often higher initially |
| Suitable for frequent travellers | Usually no | Yes |
| Covers rentals throughout the year | No | Yes |
| Best for one-off holidays | Yes | Often yes for regular travellers |
All policies are subject to terms, conditions, exclusions and eligibility criteria.
What Is Car Hire Excess Insurance?
Car hire excess insurance is designed to help reimburse certain charges you may become liable for if your rental vehicle is damaged or stolen during the hire period.
When hiring a car, the rental company will usually include basic Collision Damage Waiver (CDW). However, this often comes with a potentially high excess amount that you may still need to pay if something happens to the vehicle.
Standalone excess insurance may help reimburse eligible excess charges and certain other rental-related costs, depending on the policy wording.
What Is a Single Trip Car Hire Excess Insurance Policy?
A single trip policy covers one rental agreement for a specific period of time.
This type of policy is commonly chosen for:
- Family holidays
- Weekend breaks
- Business trips
- One-off car rentals abroad
- UK staycations involving hired vehicles
The policy starts and ends alongside your rental agreement dates.
With Leisure Guard Hire Excess & Damage Insurance, single trip policies can cover one rental for up to 180 consecutive days.’
Who Might a Single Trip Policy Suit?
Single trip cover may suit travellers who:
- Only hire a car occasionally
- Take one or two holidays per year
- Want cover for a specific trip
- Are hiring a vehicle for an extended single journey
For occasional travellers, a single trip policy can sometimes be the more cost-effective option.
What Is an Annual Car Hire Excess Insurance Policy?
An annual policy is designed to cover multiple car rentals over a 12-month period.
Rather than arranging cover every time you travel, an annual policy allows you to hire vehicles throughout the year within the policy limits.
This can be useful for:
- Frequent holidaymakers
- Business travellers
- Multiple European road trips
- Travellers who regularly rent vehicles abroad
- Families taking several holidays per year
With Leisure Guard Hire Excess & Damage Insurance, annual policies can cover multiple rentals during the 12-month cover period with rentals of up to 31 days per trip.
Who Might an Annual Policy Suit?
Annual cover may suit travellers who:
- Hire cars several times per year
- Take regular holidays abroad
- Frequently travel for business
- Want the convenience of ongoing cover
- Prefer not to arrange insurance before every trip
For frequent travellers, annual policies can sometimes work out more economical overall compared to buying multiple single trip policies.
What Does Car Hire Excess Insurance Usually Cover?
Cover varies depending on the provider and the terms, conditions and exclusions of each policy so it is important to always read your policy documents before purchasing any policy.
Some policies may include:
- Excess reimbursement
- Tyres and wheel damage
- Windscreen and glass cover
- Towing charges
- Administration fees
- Loss of use charges
- Key replacement
- Lockout cover
- Misfuelling cover
For example, Leisure Guard’s Car Hire Excess & Damage Insurance includes:
- Up to £10,000 excess reimbursement
- Up to £5,000 for glass damage
- Up to £5,000 for tyres and wheels
- Misfuelling cover
- Lockout and key cover
All cover is subject to terms, conditions, exclusions and eligibility criteria. Please ensure you read your policy documents before purchasing any policy.
What Is Usually Not Covered?
As with any insurance product, exclusions apply.
It is important that you your policy documents to understand what is not covered before purchasing any policy.
Common exclusions may include:
- Driving under the influence
- Reckless or dangerous driving
- Off-road driving
- Racing or track use
- Mechanical failure
- Unauthorised drivers
- Breaching the rental agreement
- Wear and tear damage
Leisure Guard’s policy also excludes:
- Vans and campervans
- Vehicles over £65,000 in value when new
- Cars over 20 years old
- Where the rental agreement doesn’t include the rental company’s basic CDW
- Cars with more than 9 seats
- Driving on racetracks or derestricted toll roads
This is not a full list of all exclusions, please read the policy documents carefully before purchasing a policy.
Is Annual Car Hire Excess Insurance Cheaper?
That depends on how often you hire vehicles.
- You only hire a car once a year
- Your rental period is short
- You rarely travel abroad
- You only need temporary cover
- You hire vehicles multiple times per year
- You travel regularly for work
- You take several holidays each year
- You want ongoing convenience
In some cases, an annual policy can cost less overall than purchasing several separate single trip policies throughout the year.
What Should You Compare Before Choosing a Policy?
Price is important, but it shouldn’t be the only factor.
Before purchasing cover, compare:
- Maximum trip duration
- Geographic cover
- Excess reimbursement limits
- Glass and tyre cover
- Key cover
- Vehicle eligibility
- Driver age limits
- Claims process
- Policy exclusions
The cheapest policy may not always provide the most suitable level of protection for your trip.
Annual vs Single Trip: Which Is Better?
Neither option is automatically better for every traveller.
- One-off holidays
- Longer single rentals
- Occasional travellers
- Travellers wanting short-term cover only
- Frequent travellers
- Business users
- Families with multiple trips planned
- Travellers wanting convenience
The right option depends on your travel habits and how often you hire vehicles during the year.
Tips Before Hiring a Car
Before collecting your rental vehicle:
- Check what cover is already included
- Understand the excess amount
- Read the rental agreement carefully
- Photograph existing damage
- Keep copies of all paperwork, avoid paying by cash
- Confirm who is authorised to drive
If an incident occurs:
- Notify the rental company immediately
- Gather photographs and evidence
- Obtain written reports where required
- Keep copies of your rental agreement, their damage report invoices and payment confirmations
- Report theft or accidents to the police where necessary
Get a Quote for Car Hire Excess Insurance from Leisure Guard
If you’re hiring a car abroad or in the UK, Leisure Guard Car Hire Excess & Damage Insurance could help provide protection against eligible excess charges and certain other rental-related costs following accidental damage or theft.
Cover can include:
- Excess reimbursement
- Tyres, wheels and glass
- Lockout and key cover
- Misfuelling
- Towing and administration costs
- Cutting Short your rental
- Personal Possessions
- Annual and single trip policies
All cover is subject to policy terms, conditions, exclusions and eligibility criteria.
Before purchasing any policy, always read the policy wording carefully to ensure the cover is suitable for your needs.
Get a quote online with Leisure Guard today.
Final Thoughts
Both annual and single trip car hire excess insurance policies are designed to help reduce the financial impact of damage or theft charges while renting a vehicle.
Single trip policies can work well for occasional travellers or one-off holidays, while annual policies may offer convenience and potential savings for people who hire cars regularly throughout the year.
Understanding the differences before you travel can help you choose the level of cover that best suits your travel plans and vehicle hire requirements.
Not all car hire situations, territories will be covered by Leisure Guard Car Hire Excess and Damage insurance policy. Be sure to read the policy details carefully to see what is and is not covered.
The thoughts and opinions expressed in the page are those of the authors, intended to be informative, and do not necessarily reflect the official policy or position of Leisure Guard Car Hire Excess and Damage Insurance. This content is for general information purposes only and is not intended to provide advice or amend the terms of any policy.
