There are a variety of flavours on offer depending on the rental company and the country. Many travellers leave booking a car until they arrive at the holiday destination airport, and do not have the time to think about what may happen if something goes wrong during the rental. This article gives an overview of what products may be on offer.

Third Party Insurance Third party insurance covers damage to passengers and the other vehicles involved in the case of accident. Most companies will include a basic third party insurance in the rental agreement as it will be required by law.

Third party insurance will generally have an excess figure of several hundred Euros, with the figure rising as the car group value increases. Fire and theft will often not be included, so if the car is stolen you will have to pay the full excess amount.

To supplement the third party insurance, any or all of the following insurances may be offered by the rental company:

CDW (Collision Damage Waiver Insurance) CDW Insurance covers damage to your hire vehicle, and usually also the vehicle if it is stolen (in some cases theft insurance may be sold separately). It will usually be charged at a daily rate and may include a small excess (the excess will be a much lower amount than if you had only the basic third party cover). There are items which may be excluded such as tyres, windows, upholstery, etc.

Full Insurance/Super Insurance/Premier Insurance Sometimes companies offer an additional insurance which is a combination of CDW/PAE and may also reduce the CDW excess figure.  The insurance may insure items not covered by CDW insurance such as tyres, wheels, undercarriage, etc.

PAE (Personal Accident Insurance) Some hire companies offer personal injury insurance in the event of accident. You may already have this cover if you have purchased holiday insurance. It may also cover items stolen from the vehicle.

Matt May operations manager at UK based company Blue Valley Car Hire explains “if you are worried about the insurance terms and conditions ask your prospective rental company to give you details in advance of your trip. There are companies who are notorious for charging clients for minor damage which was not picked up at the vehicle check. It is adviseable to search the internet for reviews of car rental companies before you book.”

Blue Valley Car Hire provide car rental at Faro Airport Portugal and car hire at Malaga Airport Spain.