Car Rental Insurance: Understanding Full Protection & Excess Fee Amount

When renting a car, insurance, deposit and the excess fee can be confusing. Knowing the differences between the various types of coverage and how excess works can help you make an informed decision, avoid unexpected costs, and choose the best protection for your trip.

What is Car Rental Insurance?

Car rental insurance typically comes in several forms, offering varying levels of protection for different situations. Understanding these options will help you decide what’s best for your rental.

1. Third-Party Liability Insurance (TPL)

Covers damage to other vehicles, property, or people if you’re at fault.

This is included in the base rental price as this is mandatory in Albania, with unlimited coverage.

In case of accident where is not your fault, you are 100% covered with no extra excess amount.

2. Collision Damage Waiver (CDW)

CDW covers damage to your car (the rental car) in case of an accident.

Usually, it doesn’t cover theft, and you may still be responsible for certain parts of the car, such as tires or the undercarriage.

Excess fee: Even with CDW, you may need to pay an excess fee, which is the amount you must pay for repairs before the insurance covers the rest. This amount which is a % of the full damage, depends of insurance companies where this specific car is insured.

3. Super Collision Damage Waiver (SCDW)

SCDW is an upgraded version of the CDW that significantly reduces the excess fee or removes it entirely.

While CDW may leave you with a high excess, SCDW offers better protection, making you responsible for a much smaller excess fee (max 20%) or sometimes, no excess at all.

This is ideal for those who want to minimize out-of-pocket expenses if something happens to the car.

In Albania this is called Full Casco Insurance and includes also Theft Protection.

4. Theft Protection (TP)

Protects you in case the rental car is stolen.

Often comes with an excess fee, so you’ll still be responsible for part of the loss.

5. Full Protection Package (Zero-Excess Insurance)

This is the most comprehensive option, covering all types of damage and theft with zero excess.

With full protection, you won’t have to worry about paying any excess fees in the event of damage or theft.

It often includes coverage for wheels, tires, windows, and undercarriage, which are typically excluded from standard insurance.

What is an Excess Fee and How Does It Work?

The excess fee (or deductible) is the amount you’re responsible for if the car is damaged or stolen. This is a common feature of most rental insurance policies. In Albania this is usually 10-20% of total damage. Rental companies tend to block a certain amount as part of deposit also excess amount. This is usually shown at policies information.

How Excess Works:

Example:

• You rent a car with an excess fee of €1,000.
• If you damage the car in an accident, and the repair costs are €3,000, you will be responsible for the first €1,000 (the excess), and the insurance will cover the remaining €2,000.
• Why Does Excess Matter?
• Excess fees vary between rental companies and car types.
• A higher excess fee may lower the rental cost, but it also means you’ll pay more in case of damage.
• A lower excess fee provides more peace of mind but often comes with a higher rental price.

How to Avoid Paying the Excess Fee:

To avoid paying the excess fee, you can:

• Purchase Full Protection Insurance (Zero Excess), which means you won’t have to pay anything out of pocket in case of damage or theft.
• Use a credit card that provides rental car insurance (though it may not cover everything, so check your card’s terms).
• Buy an excess waiver (third-party policy) that refunds you the excess if you’re charged.
• Is Full Protection Insurance Worth It?
• While it might come at a higher price, a Full Protection Package can offer peace of mind by removing the excess fee. Whether it’s worth it depends on your preferences and the trip you’re planning.

Understanding the relationship between insurance types, full protection packages, and excess fees can help you choose the best coverage for your rental car. Whether you’re looking for the cheapest option with basic coverage or want the peace of mind that comes with zero-excess insurance, always read the supplier policies in the car details page, and consider your level of comfort with the financial risk.

At Book N' Ride, we offer clear, detailed page for car rental insurance coverages and fees, so you can make an informed decision that suits your needs and your budget. Each supplier offer tailored protection option but you can always go for an excess waiver from third party companies like RentalCover.com