Van Hire Insurance Explained

Van hire insurance is normally provided on the same basis as car hire insurance in the UK. This means there are two elements to the insurance:

  • Third party insurance - your are covered for any damage to other vehicles and resulting injuries to other parties.
  • Collision Damage Waiver (also known as Loss Damage Waiver) - this limits your liability for the van you are renting to a fixed amount (an excess) - often £500 - £1000.

    If the van is damaged during your hire, you will have to pay out this amount before the van hire company's insurance policy will cover the rest.

    The CDW system is quite similar to the way comprehensive insurance works for private vehicles.

If you don't fancy the risk of having to pay out such a big excess, most van hire companies also offer an additional insurance product, sometimes known as Super Collision Damage Waiver. The purpose of this is to reduce your excess down to a much lower level. In return for this, you pay an additional daily fee on top of the rental costs.

It is worth remembering that tyres, glass and sometimes roof damage (i.e. driving into something that is too low for your van) are not always covered by any insurance policy and you may be liable for the full cost of repairing the damage.


Disclaimer: The insurance system described above is commonly used by car and van hire companies serving private customers in the UK. However, variations and differences exist between companies and this information is provided as a guide only. No responsibility can be taken for its accuracy and you should always check with the hire company you are using if you have any questions.