A step-by-step guide to hire car accidents, damage, and theft

Accidents and mysterious car park dents are bad enough, but if you’re driving a hire car, they can potentially ruin your holiday if you don’t protect yourself. By taking the right steps, from assessing your insurance coverage and documenting any pre-existing hire car damage to reporting incidents promptly, you can save thousands of pounds and a lot of stress. In this article, we explain how to minimise your liability in the event of an accident, damage or theft, and what to do if misfortune strikes.

Before driving a hire car

Before setting off with your hire car, inspect it thoroughly for damage and take photos. Make sure you know the emergency telephone number in the country you’re travelling in.

Get more from our comprehensive guide to Car Hire Fees and Payments.

What to do if you are in an accident in a hire car

Follow standard accident procedures

The first thing to do after a collision is to check for injuries and call 999 (or the equivalent emergency number) if necessary. Call emergency services if:

• Someone is in danger

• Someone has been seriously injured

• You believe a serious offence has been committed

• The collision has caused a blockage or dangerous obstruction of the road

Move to a secure location away from traffic if possible. Once everyone is safe:

• Exchange contact information, registration number and insurance details with other drivers involved.

• Take photos of the accident scene (including road signs, traffic signals and skid marks) and all vehicles.

• Ask witnesses for contact information

File a police report

If no one is injured, call 101 to file a police report—most hire companies require one for insurance claims. Stick to facts when speaking with officers and avoid admitting fault, as determining responsibility should be handled by insurers or courts.

Call the hire company

Report the accident to the hire firm immediately. They will advise whether the car must be towed to a repair centre or if you should drive it to a specified location. Fill out the hire company's accident report or damage claim form. Many companies now offer online reporting systems to streamline this process. 

Document everything for insurance

Keep copies of all paperwork and notes. Review your hire agreement and any insurance cover you purchased. The hire company’s Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) will limit what you owe for damage, but you will usually pay the agreed excess (often £1,000–£2,500). Travel or credit card insurance may also cover some costs, but check the terms. If you have third-party excess insurance, it can reimburse you for the excess after the claim is settled. Read our guide to car hire insurance for a deep dive into coverage options.

What to do if there is damage to a hire car

If your hire car has been damaged, such as being vandalised on the street or backed into in a car park, the key is to take care of it promptly.

Document everything thoroughly

Take detailed photographs or a video of all damage from multiple angles, including close-ups and wide shots showing the entire vehicle. Use your smartphone's timestamp feature and save footage to cloud storage for easy access later.

Contact the police

If your hire car was broken into or vandalised, a police report is usually required for insurance claims. Similarly, if you discover that the car was dented or scratched and you plan to file a claim, it is best to contact the police so you have an official record. Call 101 for non-emergencies. 

Notify the hire company immediately

Call your car hire firm and inform them of the damage. They may ask you to take the car to a branch or arrange an inspection. Under most hire contracts, the renter is responsible for damage to the vehicle, so prompt notification is crucial. The company may send someone to assess the damage. Do not have the car repaired or cleaned until they authorise it.

For minor cosmetic damage, such as a scratch or scuffed bumper, you can usually continue using the car. For more serious issues, such as a broken window or lights, the car may be unsafe or illegal to drive. Most hire agreements include roadside assistance, so the company will arrange towing and provide a replacement.

Use your insurance or excess cover

Your hire automatically includes collision damage, so you won’t be liable for the full value of the car. However, you may still be responsible for an excess of £1,000–£2,500, unless you purchased a “Super CDW” cover or third-party excess insurance. Some types of damage (like tyres or windscreens) may fall outside the standard cover. In these cases, third-party excess insurance or credit card insurance may cover these gaps.

Also, be aware that some companies charge administrative fees for processing damage claims (this can be hundreds of pounds on top of repairs).

Follow up on the claim

Keep all receipts if you must pay for a repair upfront—you can claim these back if approved. If you dispute charges (for example, you disagree about damage you didn’t cause), use the company’s complaints or “Damage Dispute” procedure promptly (often within 14 days).

What to do if your hire car is stolen

It sounds obvious, but the first step is to take a breath and make sure the car really has been stolen. Were you parked in a tow-away zone? Did you pay the hotel’s guest parking charge? Is it possible that you left it in a different spot? If the car is definitely missing, follow these steps:

Call the police

Dial 101 to report the theft and give the police all the vehicle details (make, model, registration, VIN if known). Ask for a crime reference number, as you’ll need it for insurance claims. You should also notify the police of any personal items left in the vehicle. While the hire company's cover will not replace them, your home contents or travel insurance might.

Notify the hire company

Contact the hire company immediately and provide the police reference number and all incident details. Most major hire companies include theft protection (TP), sometimes bundled with the Collision Damage Waiver (CDW) as a Loss Damage Waiver (LDW). This means you’ll only have to pay the excess if the car is stolen, provided you followed the terms (e.g., the car is locked and the keys were not left in the vehicle).

If you still need a car, you will need to book a new hire. Don’t expect a refund from the hire company for unused days, but check your travel insurance or excess insurance, because that’s often where you can claim back some costs.

Financial responsibility and liability

If you are in an accident or discover your hire car has been damaged, you will likely have to pay the excess, unless you purchased the hire company’s “Super CDW” cover. This can be as high as £2,500. Whether or not you are reimbursed for this and other charges will depend on your role in the accident and the extent of your insurance coverage. 

Scenario 1: You are at fault

Any damage to others’ property or injury to them is covered by the hire company’s third-party liability insurance. However, you will have to pay the agreed excess for any hire car damage. If you purchased third-party excess insurance, you can be reimbursed later. Some travellers’ or premium credit card insurance will also cover excess charges. 

On top of repairs, hire firms often impose administration fees for handling the claim. Check with your other insurance providers about covering these charges.

Scenario 2: You are not at fault

If another driver is at fault for the accident, their insurance company will cover your hire car damage. Keep in mind that you will usually need to pay the excess upfront and then reclaim it from the at-fault party’s insurer. If the other driver is uninsured or disappears, you can apply to the UK Motor Insurers’ Bureau (MIB) for compensation.

Special situations and considerations

Who is responsible for a broken-down hire car?

As long as you didn’t do anything to cause the breakdown (ignoring warning lights, driving recklessly, failing to maintain the car properly), the hire company is responsible for mechanical failures.

In the event of a breakdown, pull over safely, switch on your hazard lights and call the hire company’s emergency number (on your contract or key fob). Do not attempt unauthorised fixes. Most hire agreements include 24-hour roadside assistance, but if you are at fault, they may charge you a fee.

If you break down in a major city or near an airport, large hire companies can often send a replacement vehicle or arrange a quick swap at the nearest branch. In more rural areas, you may face longer delays depending on recovery times and vehicle availability.

Either way, the replacement car will usually be provided for the remainder of your hire period at no additional charge—assuming the breakdown was not your fault.

How to protect yourself

Pre-hire Inspection

Before driving your hire car, be sure to thoroughly document its condition with photos or a video. Check the entire car for scratches, dents or other damage. Don't forget less obvious areas like the undercarriage, roof and tyre rims.

After the exterior, look over the inside. Inspect the seats for stains or rips, and test all controls, including air conditioning, heating, radio, and GPS systems.

Get it in writing

Make sure that the hire company staff acknowledges any damage in the hire agreement. Return the vehicle during business hours to get immediate inspection confirmation. If using after-hours drop-off, shoot a final inspection video documenting the car’s condition. 

How to minimise liability for hire car damage

The best way to protect yourself from getting hit with a massive bill for a hire car accident is by carefully following pre-booking and post-accident steps. 

• Understand your existing insurance and purchase appropriate coverage for your needs. 

• Inspect and document the car’s condition before leaving the hire depot. 

• Document and report issues to the police and the hire company immediately. 

• Maintain detailed records of all communications and documentation.