Getting the best hire car rental is not all about finding the lowest deal. It is all the unknown add ons being charged when you come to make the deal, that can really add to the overall cost.
One of these extras is of course car hire excess insurance. You may think this won’t be much, but it can cost as much as £20 per day extra, depending on the firm you use and where you are hiring the car from.
What is car hire insurance excess?
Have you ever been in a motor collision? If you have most of you will understand that if the accident is your fault, you have to pay the first bit of the cost.
This is known as the excess and is common on most insurance policies. Well the same goes for car hire and Hire Car Excess Insurance covers that cost and more…
Thousands of tourists hire cars each year. However many are not aware of the additional costs, that are added to the overall charge until it is too late and they arrive to pick up the keys from the car hire company. At this stage it is much too late to shop around for a different deal.
However, as with finding the initial car hire deal, a little extra leg work, carried out before you go on holiday , can save you a fair amount of money and maybe get you even better cover than you would have got from the car hire company.
The rental agreement that you sign when renting a car, will normally include CDW. This is called Collision Damage Waiver (some companies may call it LDW or Loss Damage Waiver, but in essence it is the same. These terms can lull travellers into a false sense of secuirty, because no matter, if you damage the vehicle or in the worst case scenario it is stolen, the renter is still liable for the excess (the first bit of the loss)
The first bit of the loss or excess, that you will be charged can vary wildly from car hire company to company. For the majority, the cost will be between £500 and £2000 and can be more than what you have paid to rent the vehicle in the first place.
How does Excess Waiver Work?
There is a sensible option to guard yourself against this potential sting by buying excess waiver for your rental.
Companies will try to push waiver insurance when you make your booking, and the most industrious companies will continue to offer the policy right up to the point, you collect the vehicle. As we have discussed the cost can put as much as an extra £20 per day on the overall rental cost.
Social Media highlights frequent reports of less scrupulous car hire companies subjecting this customers to real hard-sell tactics when picking up their car. Tactics like there are used to put fear and worry in the minds of the driver into taking out an overpriced and underinsured waiver product.
What is the answer?
The simple answer is to purchase a stand-alone excess reimbursement policy before you travel.
The savings can be substantial. As an example if you buy a policy for a week to hire a car in Italy, the cost can be as low as £21.00, in addition to the car hire cost. Even outside the European Union a weekly policy starts at £28.00.
There is even an annual policy available for those lucky travellers who take longer trips or hire cars on a regular basis throughout the year. Savings for these customers are even greater. An annual policy for Europe is as low as £38.00 and worldwide at £60.00
Look for a policy that also provides additional cover for parts of the car that are easy to damage, such as wheel hubs, tyres, windscreen, roof top and the underneath.
Don’t forget that this policy applies to vehicles hired in the UK as well. The majority of policies will automatically extend cover to the UK.
Third Party Liability Insurance is compulsory around the world and is automatically included. Just be aware that outside of Europe, the limits can be on the low side.
It is also customary for CDW/LDW to be included with car rental throughout Europe and certainly in the car hire companies that appear in the search engine on our website.
If you need more information on insurance, then go to www.thatsinsurance.com. This company are an independent comparison site, set up to assist consumers in finding the best insurance deals.