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Car Hire Excess Insurance
What is Car Hire Excess Insurance?
Car hire excess insurance also known as car rental insurance is a type of insurance that provides coverage for the cost that you would be responsible for paying in cases of damage or theft to the rental car hired during a family holiday, beach holiday other occasions. The “excess” is the first step to making an insurance claim.
At the point of renting a car, the rental company includes standard insurance coverage but usually comes with excess amounts or deductibles. This means that if the rental car is stolen or damaged you would be required to pay a particular amount towards the cost of repairs before the insurance of the rental company kicks in.
Car hire excess insurance is typically designed to reduce the out-of-pocket expenses in any case of unexpected to the hired car. The car hire excess insurance means you get coverage from having to pay the excess or deductible when the rental company is making a claim. However, the excess is usually reimbursed.
How does Car Hire Excess Insurance work?
Car insurance works by providing coverage for excess amounts or deductibles that you will be responsible for paying in the event of damage to a hired vehicle. Here’s how car hires excess works;
- Before hiring a car, take out excess insurance by considering the coverage limit, and the type of coverage such as damage to the body windshield, theft and vandalism.
While some policies offer per trip basis, other policies offers may offer annual coverage per trip basis. But keep in mind that any car hired before taking out the policy, will not be covered and you must be of age 21 to take out any policy.
- While renting a car, a car hire agreement typically includes insurance coverage provided by the rental company which if at any point you encounter any damage or accident, will be covered by the insurance company with a damage waiver which covers any damages done to the car while you are using it. All these should be included in your car hire agreements.
- The damage waiver comes with an excess which in the event of a car accident, your car hire excess insurance comes in as your contribution to the damage but this is where your car hire excess cover comes in. Upon the successful verification of the claim, the excess paid will be reimbursed.
Do I need a Car Hire Excess Insurance?
Whether to get excess insurance or not depends on you as an individual. However, you may also want to consider factors like;
- Rental Company’s Coverage: The rental company needs to provide you with insurance coverage as part of the agreement. But keep in mind that the coverage always includes an excess amount. So consider the terms of the rental company insurance and the potential expenses you might have to face if there is any damage to the rental car.
- Personal Preference: If as an individual, you prefer to have comprehensive coverage which will minimize any financial surprises, a car hire excess could be the best. If in any case of rental car damage, the excess could range between Euro 100-10,000 which may not be in your car hire budget then you may want to opt for a hire excess insurance as this will save you from unprecedented costs in case of damage.
- The type of trip or rental could also contribute to this. If you are renting an expensive or luxurious vehicle, then you may want to consider excess coverage, as the potential repair for such cars could cost more. If you will also be driving in an unfamiliar city, you may want to get coverage.
Generally getting an excess cover is neither compulsory nor unimportant. But after considering the following factors but still unsure of what to do, you may consult with your insurance provider to make the right decisions.
What Does Car Hire Excess Insurance Covers?
Car hire excess insurance covers the excess amount or deductibles you would be responsible for paying in case of damage to a rental car. However, excess coverage may vary depending on the policy or the provider;
- It covers excess amounts specified in the rental agreement the rental company provides. which could be between 100-10,000.
- It covers any part of the rented car. Such as damage to tyres, undercarriage, windshield, or any other parts of the car.
- Other Flexible coverage options. Some insurance could allow you to choose different aspects of the rented car. This may include misfuelling, towing, breakdown, cancellation/early return of hired car due to emergency, collision damage waiver or drop-off charges.
- Additional Benefits. Depending on the insurance policy, some excess insurance may offer some benefits such as coverage for personal belongings or injuries sustained in the hired car.
- Some excess also covers optional extras like vehicle key replacement. This usually includes replacing a lost or stolen key, replacing locks, or locksmith charges.
What are the Types of Car Hire Excess I can get?
There are various types of car hire excess insurance available to explore with each providing coverage for different aspects of the potential cost you can accrue in the cause of renting a car.
- Single-Trip Excess Insurance: This type of insurance provides coverage for a particular rental period or trip. It is ideal for one-time rentals as it expires right after the rental period is over.
- Annual Excess Insurance: This insurance provides coverage throughout the year, allowing opportunities to make multiple rentals. This insurance suits subsequent travellers who rent cars regularly during their trips.
- Worldwide Excess Insurance: This is a single and multi-trip coverage for any country in the world. This can be great for individuals who consistently travel internationally. But keep in mind that there could be exceptions for some countries.
- UK and EU Car Hire Excess Insurance: This provides you access to unlimited multi-trip annual cover for UK car hire or EU car hire all within a single policy.
Why you Should buy a Car Hire Excess Insurance Before you Travel?
Buying Car hire excess insurance before you travel could be important for many reasons.
- Protection against unexpected damages: Having a car hire excess insurance not only covers damages in cases of accidents, but also covers theft, vandalism or even damages to some parts of the car such as the tyres, windscreen, or roof. With coverage in place before your trip, you can be ensured you are protected against unexpected damage situations.
- Saves you from high rental company charges: Some rental companies offer their excess insurance at the counter which could be more expensive and you may feel pressured to get it at the counter. However, if you already have excess insurance before your trip, you can confidently decline the rental company’s excess coverage.
- Convenience and Planning: Planning and getting excess insurance before your trip, provides the convenience of handling details and paperwork at your own pace. This helps you avoid last-minute decisions and any potential pressure at the rental company counter.
- Peace of Mind: Knowing you have excess insurance coverage before picking up a car gives you a level of confidence when driving the car. You can enjoy your trip at any point without worrying about any potential out-of-pocket expenses. Most excess insurance covers range from €100-€10,000 depending on the insurance company.
- An Excess Coverage tailored to your needs: Buying a care hire excess beforehand, gives you enough time to research different providers, compare coverage options, and choose a policy that aligns with your specific needs and also options of damages you want the policy to cover.
An advance excess coverage will also allow you to tailor the coverage to suit the type of trip and the car you intend to hire.
What is a Collision Damage Waiver(CDW)?
Collison Damage Waiver is a type of insurance offered by car rental companies to reduce the financial responsibility of the renter in case of damage to the rental car. Collision Damage Waiver is also known as Excess Waiver, Super Cover, or Excess Protection.
This coverage is specifically for repairs needed due to collisions, accidents, or damages while the rented car is with the renter. However, keep in mind that a CDW may not necessarily cover all types of damages like (windscreen, undercarriage, or tyres).
While CDW is available to protect the renter from any financial burden, it usually includes excess–meaning as the renter, you are responsible for paying a particular amount for the insurance to take effect.
While CDW caters to car rental damages, you should know that it does not protect a 3rd party car in cases of accident collision. The need to include CDW in your rental agreement is optional, however, it could be a legal requirement in the country you are visiting.
A CDW may not cover all damages, but renters are advised to review the terms and conditions of a CDW and also consider their present insurance as some personal car insurance may also offer rental coverage.
What Is SLI(Supplemental Liability Insurance)?
This is a type of insurance that provides coverage for a 3rd party. It provides additional coverage for third-party liability when renting a car. It is designed to protect the renter against potential claims from third parties from bodily injuries or property damage caused by the rental car.
An SLI can also be called an Additional Liability Insurance (ALI). Renters have the option to purchase SLI as part of their rental agreement or just include it for additional coverage of more than what CDW offers.
Do I have to Buy the Insurance Offered by the Rental Company?
No, you are not under compulsion to buy the car hire insurance offered by the rental company. Where to buy it or not is up to you. However, if you want a more comprehensive cover, at a fair price, then you may want to reconsider.
How can I Avoid a Car Hire Insurance Hard Sell?
To avoid being pressured into purchasing car hire insurance, it’s important to be informed. As much as basic insurance is always included with your insurance agreement, that doesn’t stop some companies from shoving it down your throat by pressure selling their policies.
To avoid giving in to these pressures, understand the type of insurance offered by the insurance company. Understand your insurance, or you can ensure to buy your excess insurance policy from a third-party insurance provider. This will help you firmly decline their buying pressure at the counter or inform them in advance of declining any additional policy.
However, some may persist or try to find a problem with your insurance(these are some tactics they use) firmly decline, assert your decision and make sure you only pay for the services and coverage you have agreed upon. Be confident in your choice and don’t succumb to any high-pressure insurance sales tactics.