Van hire deposits and insurance explained

When you hire a van, two costs often catch people out: the deposit and the insurance. Here's what to expect and how to protect yourself.

The deposit

Most hire firms take a pre-authorisation on your debit or credit card when you collect the van. Typical amounts range from £200 to £1,000 depending on the vehicle and the firm.

• It's a hold, not a charge — the money is released back to you when you return the van undamaged.
• Release can take 3–10 working days, longer on debit cards.
• If the van is returned damaged or unrefuelled, the firm may use the deposit to cover the cost.

Use a credit card if you can — it offers extra protection under Section 75 of the Consumer Credit Act if something goes wrong.

Insurance — what's covered?

Hire vans are usually insured on a fully comprehensive basis, but with a high excess — often £500–£1,500. That means if you damage the van, you pay the first part of the repair cost up to the excess.

There are normally three policies on a hire van:

1. Collision Damage Waiver (CDW) — covers damage to the hire van itself.
2. Third-party cover — damage you cause to other people or vehicles.
3. Theft protection — if the van is stolen.

Excess reduction

Most firms offer excess reduction (sometimes called Super CDW) for a daily fee. This lowers the amount you'd pay if there's a claim. It adds to the daily rate but gives peace of mind.

Alternatively, some standalone van hire excess insurance policies cover the excess for a few pounds a day — compare this to the hire firm's own product.

What's usually NOT covered

• Damage to tyres, windscreens and the vehicle's underside
• Damage caused by incorrect fuel (putting petrol in a diesel van)
• Theft if keys were left in the van
• Driving off-road or on unsealed surfaces
• Driving without due care (e.g. hitting a low bridge — check the height!)

Before you sign

• Ask exactly what the deposit is and how it's returned.
• Ask what the excess is and what the optional reduction costs.
• Check what's excluded.
• Photograph the van at collection — every panel, inside and out.

Tip: Note the van's overall height before you drive off — bridge strikes are one of the most common (and expensive) hire-claim causes.