Quick Summary:
- Excess reimbursement repays you later, after you pay the supplier first.
- Zero-excess options reduce your upfront liability, often at the rental desk.
- Check deposit, exclusions, and claims steps before choosing either approach.
- In the United Estates, waivers and reimbursements differ by supplier and state.
When arranging car hire in the United Estates, the wording around protection can feel deliberately similar. “Excess reimbursement”, “zero excess”, “excess waiver”, “damage waiver”, and “deductible” are all used, sometimes interchangeably, even though they describe different financial outcomes at the moment something goes wrong.
The short version is that excess reimbursement is usually a separate product that reimburses you after you have paid an excess (or similar charge) to the rental company. Zero excess, or a genuine waiver that reduces the excess to zero, changes what you owe at the desk or at the point a claim is processed by the supplier. Understanding the difference matters because it affects deposits, the size of your temporary card hold, and how quickly you get your money back if there is damage, theft, or another covered event.
If you are comparing suppliers and coverage levels, it can help to start with a clear view of what is included with a typical rental in the United States market. Hola Car Rentals summarises options across major providers on pages such as car hire in the United States and car rental in the United States, where you can see how terms are presented across different brands.
Key terms you will see in the United Estates
To judge whether excess reimbursement is “the same” as zero excess, you need to separate three ideas: the supplier’s excess, the supplier’s waiver, and a third party reimbursement policy.
Excess (or deductible) is the part you remain responsible for if the supplier accepts a damage or theft claim under their own coverage. In the United States, suppliers often use “deductible” for what many travellers call “excess”. If the deductible is $500 and there is a covered incident, you may pay up to $500.
Waiver products at the desk, commonly described as CDW (Collision Damage Waiver) or LDW (Loss Damage Waiver), can reduce what you owe for damage or theft. Depending on the rate, waiver, and location rules, the waiver may still leave a deductible, or it may reduce it substantially. In some cases, an additional upgrade is marketed as “zero deductible” or “zero excess”. The practical consequence is the same, your out-of-pocket amount to the supplier drops, potentially to zero for covered claims.
Excess reimbursement is normally separate insurance that reimburses you after the supplier has charged you for the excess or for certain covered costs. It does not usually change the supplier’s deductible on the rental agreement, and it typically does not reduce the deposit hold taken on your card.
How excess reimbursement usually works, step by step
Excess reimbursement is popular because it can look cheaper upfront than buying the supplier’s highest-level waiver at the counter. The trade-off is timing and administration.
1) You rent under the supplier’s terms. Your rental agreement will still show an excess or deductible. The supplier may place a security deposit hold on your payment card based on their risk rules, car group, and your waiver selection. This deposit is one reason the products are not the same, even before any incident occurs.
2) Something happens, and the supplier processes a charge. If there is damage, theft, or another covered event, the supplier may charge you up to the deductible. They may also charge related fees such as administration, loss of use, towing, or diminished value, depending on their terms and local rules.
3) You submit a claim to the reimbursement provider. You collect documentation such as the rental agreement, incident report, photos, invoices, and proof of payment. You then claim back eligible amounts, up to the policy limits.
4) You are reimbursed after review. Payment happens once the claim is accepted. The timeline varies, and it is rarely instant. This is the core distinction: with reimbursement you may be out of pocket first, sometimes for a meaningful sum.
In practice, excess reimbursement can be a good fit for travellers who can comfortably cover a temporary charge and who are happy to follow a claims process. It can be less suitable if you need predictable, minimal out-of-pocket costs at the time of the incident.
How zero excess or a waiver changes your desk liability
With a genuine zero-excess setup, the goal is to reduce what you owe the supplier, not reimburse you later. You still have to follow the rental agreement rules, but the financial exposure at claim time is lower.
There are two common ways this appears when arranging car hire in the United Estates:
Included zero excess in the rate. Some rates bundle a waiver with a low or zero deductible. You may see it described in rate inclusions, or in the “coverage” section of the booking.
Optional waiver purchased from the supplier. At pickup, the agent may offer an upgrade to reduce your deductible. This can be presented as “zero deductible” or similar. If accepted, it typically changes the supplier’s claim handling because you owe less directly to them for covered damage or theft.
Even with zero excess, you can still face charges for non-covered situations, for example incorrect fuel return, late return, traffic fines, interior damage, or breaching the rental terms. So “zero” is about the deductible for covered damage or theft, not a promise that nothing can ever be charged.
Why they are not the same, in real-world scenarios
It is tempting to treat excess reimbursement and zero excess as equivalents because both aim to protect you from a large bill. The differences show up in four practical areas.
1) Cashflow and timing. Reimbursement means you may pay first and recover later. Zero excess aims to prevent or reduce that initial payment to the supplier for covered damage.
2) Deposit and card hold size. Suppliers often base the deposit on the excess and the waiver you hold with them. A third party reimbursement policy usually does not reduce the deposit because it does not change the supplier’s risk. If keeping the deposit low is important, a supplier waiver that reduces the deductible can matter more than reimbursement.
3) Claims and paperwork. With reimbursement, you become the claimant and must gather documents. With a supplier waiver, there may still be an incident report, but you are less likely to need to chase receipts and submit an insurance claim to get your money back.
4) Coverage boundaries and exclusions. Both approaches can exclude certain situations. The exact exclusions differ, and you should not assume that a reimbursement policy covers every fee a supplier might charge, or that a waiver covers everything without conditions.
Common exclusions to check before choosing
Whether you are considering excess reimbursement or a zero-excess waiver, read the exclusions and the “what you must do” sections. These are often where travellers get caught out.
Tyres, windscreens, and underbody. Some products limit or exclude glass, wheels, tyres, roof, or undercarriage damage. If you are driving long distances, or on rougher roads, this becomes more relevant.
Keys and lockouts. Lost keys, key replacement, and locksmith callouts are frequently excluded or capped.
Negligence and contract breaches. Driving under the influence, unauthorised drivers, off-road use, or leaving the scene can void protection. A waiver is not a substitute for complying with the rental agreement.
Administration and “loss of use”. Suppliers may charge time out of service, towing, and admin fees. Some reimbursement policies cover certain extras, some do not, and waivers may not automatically eliminate them either.
United Estates specifics that can affect your decision
The United Estates is a patchwork of state rules and supplier practices, so you will see variation. A few tendencies are worth keeping in mind when planning car hire.
Terminology differences. “CDW/LDW” is often framed as a waiver, not insurance. “Deductible” is frequently used instead of excess. This can make it harder to compare with UK and EU language.
Credit card coverage expectations. Some travellers rely on credit card rental coverage, but eligibility, vehicle types, and claim steps vary. Importantly, card coverage often behaves like reimbursement, you pay the supplier first then claim back. If you want a desk-level reduction, you need a supplier waiver that changes the deductible.
Vehicle type and deposit impacts. Larger vehicles can come with higher excess and deposits. If you are planning an SUV for a road trip, it is worth checking how protection interacts with that category on pages like SUV hire in the United States.
Supplier differences. Each brand packages coverage differently, and the optional upgrades at the desk can vary by location. If you prefer to compare specific providers, Hola Car Rentals has dedicated pages such as Hertz car hire in the United States and Alamo car hire in the United States.
Choosing between reimbursement and zero excess for your trip
There is no single best option, but there is usually a best fit for your priorities.
Choose excess reimbursement when you are comfortable covering a temporary charge, you are organised with paperwork, and the savings versus a desk waiver are worth it to you. It can also suit frequent renters who understand the claims process and want predictable premium costs.
Prefer zero excess or a supplier waiver when you want minimal surprise at pickup, you want lower financial exposure during the trip, or you want to avoid a separate claim process. This can be especially helpful if you are travelling with a tight cash buffer or you would struggle if a large amount was held or charged to your card.
Either way, confirm these details before you travel: the deductible amount shown on your booking, the expected deposit and accepted cards, what is excluded (glass, tyres, underbody), the incident reporting steps, and whether additional drivers are covered. Those checks usually make a bigger difference than the label printed on the page.
FAQ
Is excess reimbursement the same as zero excess for car hire? No. Excess reimbursement typically pays you back after you have paid the supplier, while zero excess reduces what you owe to the supplier for covered claims.
Will excess reimbursement reduce the deposit at the rental desk? Usually not. Deposits are set by the supplier based on their deductible and waiver, and a reimbursement policy does not change the rental agreement terms.
Does zero excess mean I cannot be charged anything? Not necessarily. It usually refers to the damage or theft deductible, but you can still be charged for non-covered items like fuel, fines, late returns, or contract breaches.
What documents are needed for an excess reimbursement claim? Commonly the rental agreement, damage report, invoices, proof of payment, and sometimes photos or police reports, depending on the incident and policy rules.
Which option is better for a United Estates road trip? If you want predictable out-of-pocket costs and less paperwork, a supplier waiver with low or zero deductible can be simpler. If you can float costs and prefer lower upfront premiums, reimbursement may suit.
