Car hire excess insurance pays you back the excess a rental company charges if the hire car is damaged or stolen. Blue Insurance says rental excesses normally range from €500 to €2,000, and its standalone European cover starts from €3.29 a day (checked 9 November 2026). You can buy excess cover at the rental desk or from a separate insurer, and the two work differently.
What the excess on a hire car is
The excess is the part of a claim you pay yourself. The CCPC says rental car insurance often has a high excess.
The basic price does not cover the car itself. The CCPC says rental companies only have to include third-party insurance in the initial quote. That covers damage or injury to other people, but not damage to the rental car, injury to you, or theft or fire.
So if the car is scratched, dented or stolen, the rental company charges you up to the excess. The CCPC says most car hire companies ask for a credit card for the security deposit.
Rental desk cover or standalone excess insurance
You do not have to buy excess cover from the rental company. The CCPC says you may get it from another insurer at a lower cost. European Consumer Centre Ireland (ECC Ireland) says buying excess insurance in advance "is often much cheaper" than buying it at the desk (July 2026).
| Rental company's excess cover | Standalone excess insurance | |
|---|---|---|
| Where you buy it | From the car hire company, often at the desk | From a separate insurer, before you collect the car |
| The deposit | ECC Ireland says the non-refundable "Super Cover" some suppliers sell exempts you from a deposit, because it covers the excess | The rental company still takes its deposit or charges your card |
| If the car is damaged | The excess is reduced or covered at source (ECC Ireland) | You pay the rental company first, then claim the money back (CCPC) |
Desk sales are common. In CCPC research published on 18 May 2026, 70% of Irish holidaymakers who hired a car abroad bought at least one type of insurance. More than 4 in 5 of them bought it from the car rental company. Those who bought insurance were twice as likely to say they spent more than expected.
The same research found that 43% had a problem with their rental in summer 2025. One caller to the CCPC helpline said they were charged €274.40 for additional insurance that was never mentioned.
What to check in a standalone policy
Read the policy wording before you buy. Blue Insurance publishes its terms in an FAQ, so we use them as a worked example (checked 9 November 2026). Other policies will differ.
Cover limit
Blue repays up to €7,500 for any one incident, and up to €7,500 in total in any one period of insurance. If the rental excess is higher than the limit, you pay the difference.
Tyres, windscreens and other parts
Check which parts of the car are covered. Blue covers windows, tyres and wheels, headlights, the undercarriage and the roof, plus loss of use. If a policy does not list a part, ask before you buy.
Keys
Blue pays up to €500 per claim, and up to €2,000 in a period of insurance, for a lost or stolen key, replacement locks and locksmith charges.
Drivers and age limits
With Blue, the lead driver on the policy must be the lead driver on the rental agreement. You can add up to five other drivers if they are also on the agreement. All drivers must be aged 21 to 84 and live permanently in the Republic of Ireland.
Vehicles not covered
Blue excludes vehicles over 10 years old, cars worth more than €70,000, motorhomes, vans, and vehicles with more than 7 seats, among others.
Trip length and annual cover
A Blue single policy covers one rental of up to 180 days. Its annual policy covers unlimited rentals, each up to 62 days. The CCPC says an annual policy could save money if you plan several trips.
When you buy it
Blue says you must buy the policy before you sign the rental agreement.
The deposit
Standalone cover does not remove the deposit. Blue says some rental firms pre-authorise or debit a sum equal to the excess from your credit card. In the CCPC research, 76% had to give a credit card for the security hold.
How a claim works
The CCPC says the rental company will still take the excess from your credit card if you claim. You then claim it back from your excess insurer.
Records matter if there is a dispute. The CCPC and ECC Ireland both say to inspect the car before you drive away, have existing damage recorded and take your own photos and videos. ECC Ireland reports a case where an Irish consumer got a full refund of damage charges after showing photos of damage that was already on the car.
Keep the rental agreement, the damage report, receipts and your photos. You will need them to claim.
When you may not need it
- You already bought the rental company's cover. If you take the desk's excess product, a second policy for the same excess may add little. Blue says that if another policy covers the same excess, it only pays its share.
- Your travel insurance already includes it. The CCPC lists rental car excess cover as an optional travel insurance add-on. Check your policy and its limit before you buy a separate one.
- You do not need a car. The CCPC's first question for renting abroad is whether you actually need to rent a car at all.
Do not assume your own car policy covers a hire car. The CCPC says the "driving other cars" benefit does not cover damage to the car you borrowed. Ask your insurer before you travel.
Young drivers face extra costs. The CCPC says rental firms often add surcharges for drivers under 25, and many require at least two years with a full licence. See our guide to young driver insurance. For your own car, see how much car insurance costs in Ireland and our car insurance guide.
Sources
- CCPC: What you should know when renting a car (accessed 9 November 2026)
- CCPC: Ten questions to ask when renting a car abroad (accessed 9 November 2026)
- CCPC: Over 40% of Irish holidaymakers had issues with their car rental last summer, 18 May 2026 (accessed 9 November 2026)
- CCPC: Travel insurance (accessed 9 November 2026)
- CCPC: Car insurance (accessed 9 November 2026)
- European Consumer Centre Ireland: Using car hire this summer, what you should know, 8 July 2026, and Lost deposits, unfulfilled bookings, maxed out credit cards (accessed 9 November 2026)
- Blue Insurance: Car Hire Excess Insurance FAQs and home page (accessed 9 November 2026)
General information, not financial advice. Prices and rules change: check the details with the insurer before you buy.