Car hire insurance terms can look similar at first glance, but CDW, excess, deposit and excess reimbursement each play a different role in your rental. Understanding these basics, and how Premium cover and Full cover differ, helps you compare offers more confidently and decide whether additional protection is useful for your trip.
What Collision Damage Waiver (CDW) means
Collision Damage Waiver, often shortened to CDW, is a common part of car hire protection. It usually reduces your financial responsibility if the rental car is damaged in an accident, subject to the rental conditions. CDW is not always the same as full insurance, and it may still leave you responsible for an excess amount.
- Included vs optional: Some offers include basic CDW in the rental price, while others present it as an upgrade.
- Not always complete cover: Tyres, glass, underbody, roof or interior damage may be excluded depending on the rental car company.
- Still linked to excess: Even with CDW, you may pay a set excess if damage occurs.
- Check the rental offer: Always review the specific conditions for what is covered and what is not.
Excess and deposit: how they differ
Excess and deposit are easy to confuse, but they serve different purposes. The excess is the amount you may still have to pay toward damage or theft under the rental conditions. The deposit is a hold or charge placed on your payment card when you collect the car, often to cover possible excess, fuel, tolls or other charges.
| Term | What it is | When it matters |
|---|---|---|
| Excess | The amount you may remain liable for after CDW or similar cover | If the car is damaged, stolen or subject to a covered claim |
| Deposit | A temporary card hold or charge at pickup | At collection, and again if charges are applied before release |
| CDW | A waiver that can limit your damage liability | When comparing included protection levels between offers |
| Excess reimbursement | Separate cover that may repay an excess you paid | If you want extra protection beyond the rental company's basic terms |
A lower excess can mean less financial risk if something goes wrong, but it does not automatically mean a smaller deposit. Deposit amounts depend on the rental car company, car category, insurance package and local rental rules, so it is worth checking both figures before you book.
What excess reimbursement cover does
Excess reimbursement cover is designed to help you reclaim the excess you may have to pay under the rental agreement. It is usually separate from the rental company's own CDW package. Depending on the product, it may reimburse eligible excess charges after a claim process, rather than removing the excess at the rental desk.
Before buying any extra cover, compare what is already included in the rental offer, what exclusions apply, and whether the reimbursement product matches your trip. Also check whether your credit card or travel insurance already provides similar protection, so you avoid paying twice for overlapping cover.
Rental terms and insurance documents
The details above are a general guide. For the offer you are booking, the binding information sits in the documents linked in the Planet Rentalcars booking journey.
- Rental terms: Every offer includes a link to the rental terms. Open them to check included protection, excess, deposit, exclusions and the rental car company's own insurance rules.
- Insurance Product Information Documents: If you select insurance, you also get a link to the Insurance Product Information Document (IPID). Use it to look up what the selected insurance covers, what it excludes and how a claim works for that specific car hire offer.
Read both documents before you confirm the booking. The IPID summarises the insurance product; the rental terms set out the conditions of the hire itself.
Step-by-Step: How to check insurance before booking
A short checklist makes car hire insurance easier to compare. Focus on what is included, what remains your responsibility, and whether any additional product is genuinely useful for your journey.
- Read the included protection: Check whether basic CDW or similar cover is already part of the offer.
- Note the excess amount: Confirm how much you may still need to pay if damage or theft occurs.
- Check the deposit: Look at the expected card hold at pickup and which payment methods are accepted.
- Review exclusions: Check whether items such as tyres, glass or underbody damage are covered.
- Decide on excess reimbursement: Only add extra cover if it fills a clear gap after checking your rental offer and any existing insurance.
- Open the linked documents: In the booking journey, read the rental terms for the offer. If you have selected insurance, also open the Insurance Product Information Document to check the cover that applies to that booking.
- Check desk insurance at pickup: If the rental car company offers extra insurance at the counter, compare it with any cover already booked on Planet Rentalcars and only add it if it is still needed.