Annual vs daily car hire excess insurance: which to buy

The pricing logic

Daily cover runs roughly €3–7 per rental day, so a two-week holiday costs €40–100. Annual policies typically run €40–80 for unlimited rentals (each usually capped at ~60 consecutive days).

Rent twice a year or more — or once for two weeks+ — and annual is almost always cheaper. Single week-long trip: daily is fine and slightly cheaper.

Check these four lines before buying either

Geographic cover: Europe-only policies are cheaper; worldwide costs a little more. Renting in both? Buy worldwide once.

Vehicle exclusions: vans, motorhomes, premium classes and 4x4s are often excluded or surcharged.

Excess cap: the policy pays up to a stated maximum (commonly €2,000–7,500). Match it against the excess in your rental agreement.

Who can drive: named-driver vs any-driver policies matter when couples share the driving.

The claim process, so you know what you're buying

If the rental company charges you, you pay first, then claim: rental agreement, condition reports, the company's invoice, and proof of payment. Insurers typically pay within days to a few weeks.

This is also why the evidence routine matters even when insured — a disputed charge you can defeat outright is better than a claim on your record.