Car Rental Excess: How It Works and How Much You May Have to Pay
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Are you renting a car and coming across terms like “excess”, “security deposit” or “deposit”? It’s normal to feel confused. With this guide, you’ll understand what each term means, how they work and how they affect the final cost of your car rental.
After reading, you’ll know:
- What car rental excess is
- The difference between excess and security deposit
- Which excess option to choose: standard, reduced or zero
- What to do in case of an accident
What Is Car Rental Excess?
Excess is the maximum amount you may have to pay if the vehicle is damaged during your rental period.
It works as a liability cap:
- You pay up to the excess amount
- The insurance covers the remaining cost
Basic insurance is already included in the rental price, but it is never unlimited — there is always an excess, unless you purchase additional cover to reduce or eliminate it entirely.
Practical example:
- Excess: €850
- Damage to the vehicle: €1,200
- Amount you pay: €850
- Amount covered by insurance: €350
When Do You Pay or Not Pay the Excess?
You only pay the excess if the vehicle is damaged and the damage falls within the terms of the insurance coverage.
It’s important to note that the excess — and all other insurance cover — only apply when the situation is covered by the policy conditions. In cases of negligence or breach of contract terms, the insurance may not cover the damage.
If you’d like to better understand which additional cover options you can purchase and what each one includes, read our article on car rental insurance cover options.
You may have to pay the excess when there is damage such as:
- Scratches or dents
- Minor parking damage
- Small collisions
You will not pay the excess when:
- You have purchased zero excess cover
- The damage was caused by an identified third party
- The damage was already recorded at pick-up
- The damage is covered by a specific protection plan
- It was a mechanical breakdown not caused by the driver
Are Security Deposit and Excess the Same in Car Rental?
No. A security deposit is a temporary guarantee. The amount is blocked on your credit card and fully released once the vehicle is returned without damage.
- Excess: the maximum amount you may have to pay in case of damage
- Security deposit: a temporarily blocked guarantee (not a charge)
Example:
- Rental cost: €350
- Security deposit blocked: €950
- Vehicle returned without damage → you only pay the rental fee: €350
- The security deposit is released in full
Which Excess Option Should You Choose for Your Car Rental?
The excess option you choose determines the level of financial risk you assume during the rental.
Option 1: Standard Excess (Included in the Price)
Average amounts:
- Economy car: €1,950
- SUV: €3,450
- Van / 7–9 seater: €4,950
Recommended for drivers who:
- Are experienced and confident
- Are renting for a short period (1–2 days)
- Have simple, low-risk routes planned
- Want the lowest daily rental rate
Option 2: Reduced Excess or Zero Excess
This option comes with an additional daily cost, but it reduces or fully removes the amount you would have to pay in case of damage.
- Reduced excess — significantly lowers the liability amount
- Zero excess — you pay nothing for covered damage
Recommended for:
- Long trips
- Busy urban areas
- Narrow or unfamiliar roads
- Families travelling with children
- Drivers who prefer full cost predictability
I Had an Accident with My Rental Car: What Should I Do?
Having an accident in a rental car can be stressful, but the process is straightforward if you know what to do.
The most important thing is to stay calm, follow the proper procedure and contact the rental company as soon as possible.
Emergency Procedure: Step by Step
Ensure Safety
- Stop the vehicle in a safe place
- Switch on your hazard warning lights
- Place the warning triangle and wear a high-visibility vest
Document Everything
- Take photos of the damage
- Photograph the accident location
- Capture images of any other vehicles involved
- Record licence plates, different angles and any relevant road signs
Contact the Rental Company
- Drivalia provides 24-hour roadside assistance.
Follow the Instructions Given
This may include:
- Completing a European Accident Statement
- Contacting the authorities
- Waiting for roadside assistance or a tow truck
Do Not Leave the Scene if Third Parties Are Involved
What Happens to the Security Deposit After an Accident?
The security deposit acts as a financial guarantee during your car rental. After an accident, the procedure depends on the type of damage and the cover you have chosen.
If the Damage Is Covered by Insurance
- Only the amount up to the excess limit may be retained
- With zero excess cover, nothing is retained
In Cases of Negligence
The insurance may not apply, and the excess may no longer limit the amount payable.
Examples of negligence:
- Driving under the influence of alcohol or drugs
- Refuelling with the wrong fuel type
- Mechanical misuse (e.g. clutch abuse)
- Ignoring dashboard warning lights
Pay close attention to any warning signs during your car rental to avoid issues when returning the vehicle.
How to Choose the Best Excess Option for Your Car Rental?
The best option is always the one that matches your driver profile, the route you plan to take and the level of risk you’re comfortable with.
Choose Standard Excess If You:
- Want the lowest daily rate
- Are an experienced driver
- Know the area well
- Are renting for a short period
Choose Reduced or Zero Excess If You:
- Want maximum peace of mind
- Plan to drive long distances
- Are travelling with children
- Are driving in a new or unfamiliar area
At Drivalia, we believe car rental should be transparent and free from surprises. That’s why we provide clear, straightforward information, helping every customer understand the available options and choose the level of protection that best suits their trip.
Renting a car should be simple, clear and stress-free — and that’s the confidence we want you to feel every time you travel with us.
