Car Hire Excess Insurance: What It Is, Why You Need It, and How to Save Money
When renting a car, one of the most overlooked aspects is Car Hire Excess Insurance. But what exactly is it, and do you really need it? Let’s break it down.
What is car hire excess insurance?
In Europe, car rental agreements often include Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW), which cover damage to the vehicle. In the U.S., these types of insurance are typically essential but may not be included in the rental price. While these policies cover damages, they often come with an excess fee. This is the amount you’re liable for in the event of a claim.
Car hire excess insurance is designed to protect you from these high excess fees.
Why You Might Need Excess Insurance
It’s easy to assume that as a careful driver, you won’t need extra coverage. However, many claims involve incidents where the car is parked or unattended. A simple scratch or a missing wing mirror can lead to surprisingly high repair costs. Without excess coverage, you could be left paying a significant amount out of pocket.
The Cost of Excess Coverage
Delaying the purchase of excess insurance at the rental counter can be expensive. Fees at the desk can reach up to £150 per week. In contrast, buying an independent policy online in advance is often much cheaper, with rates as low as £3.49 per day. Frequent travellers may want to consider an annual policy, which starts at around £41.99 for European rentals.
Benefits of Independent Policies
Independent excess insurance policies typically offer more comprehensive coverage than rental company policies. For instance, rental desk insurance often excludes coverage for common damages like tyre and windscreen issues, while independent policies usually include these. Additionally, independent providers are often regulated, giving you added peace of mind.
How Standalone Excess Insurance Works
Standalone car hire excess insurance operates on a reimbursement model. If you need to make a claim, you pay the excess to the rental company, then reclaim it from your insurance provider. You’ll need a credit card with enough available balance to cover the deposit at pickup.
Although rental companies may question the validity of independent policies, they are not obligated to accept them. If the rental company challenges your policy, ask for a written statement or document their objections. In many cases, they’ll back down.
Final Thoughts
To avoid high rental counter fees and the stress of upsells, consider purchasing car hire excess insurance online before you travel. It’s more affordable, often more comprehensive and ensures you won’t be caught off guard by hidden costs. Peace of mind on your trip is priceless and this insurance can help provide that.
