Knowing whether or not to include car hire insurance can be tricky. You can be talked into things you don’t need by pushy sales staff or make the mistake of thinking you don’t need insurance when you do. Either way can be a costly mistake so always make sure you check the small print. Here are a few tips and terms to understand to help you make the best choice.

All car rental places should provide you with at least a basic insurance called a CDW (Collision Damage Waiver) or LDW (Loss Damage Waiver) which typically covers damage, theft and Third-Party Liability Insurance (sometimes called Supplemental Liability Insurance, SLI) which is in case you cause damage/injury to someone else. These still only cover ‘certain parts’ of the car or theft, so always check what the policy covers. This of course varies from country to country so you definitely need to do some research, before you get there.

CDW/LDW is usually included in rentals in Europe, Africa and Australasia, but generally not in the US or Canada. Always double check ahead of time online and if you can’t find the answer there, try a customer support number. If you want to be extra cautious, you can also get car hire excess insurance so that if there is any damage to the vehicle that isn’t covered within the insurance you won’t end up paying an excess cost of £100-£2000.