If you’re travelling in the New Year for pleasure or business, this simple New Year’s resolution could save you a fortune. We’re talking about car hire excess insurance and why you should take a few minutes before you travel to source a policy that will give you peace of mind motoring.
Do I really need car hire excess insurance?
The short answer is yes, we believe you do. The excess on your hire car insurance can run into thousands because car rental is a high risk as far as insurers are concerned. We all like to think that we’re safe and careful drivers but accidents can and do happen, and your car hire company will charge you whether the damage is your fault or was caused by a complete stranger. Imagine being liable for a £2000 excess while you were at the beach and someone dinged your hire car.
Car hire excess insurance will cover your liability by refunding the excess to you via a third party insurer. You’ll be covered if the worst happens and your trip needn’t leave you out of pocket.
But why not buy at the rental desk?
Buying excess insurance is one of the biggest rip offs you’ll face when you arrive to pick up your hire car. Major rental companies can charge hundreds of pounds for a policy that covers you for a fortnight and it’s very easy to fall for the hard sell and end up taking out an expensive waiver excess policy.
After a long flight or when you’re travelling with young children, it can be so tempting to just sign up for everything you’re offered just to get to your destination. The problem is you’ll be paying over the odds for cover that just doesn’t meet your needs. The chances are that you can pay out for excess insurance from the rental company and still end up paying the excess if the car’s mirrors, tyres or undercarriage are damaged because those vulnerable parts of your car won’t be insured.
But that doesn’t mean this type of cover should be avoided. In fact, it’s all the more reason you should put half an hour aside before you travel and source an independent policy that covers all this and more.
Where rental company policies fall short
11% of claims are for damage to windscreens and tyres. Coincidentally, those are the kinds of vulnerable areas of your hire car that the at-the-desk policy won’t cover. So that accidental flat or a ding to the chassis can end up costing you dearly because it’s not covered by your excess policy. That’s another reason why purchasing an independent policy from a third party insurer is better value and makes better sense.
When you buy from an independent insurer, you’ll be able to find a policy that covers more than just the excess on your rental car insurance policy. You’ll be able to cover those vulnerable areas that can leave you with a big credit card bill plus other liabilities such as lost keys and misfuelling.
If your rental company refuses to accept your third party insurance, ask them to make the statement in writing or record it on your phone. You’ll soon find that they back down. However, you will have to provide a credit card with enough credit for the company to ringfence the amount of the excess. This will be charged and then reimbursed if there is an issue.
Get the best value for your excess insurance policy at Excess Buddy
At Excess Buddy you can get cover for just 11p a day when you purchase annual European cover. So what are you waiting for? Make your New Year’s resolution today and start saving 65% over the cost of a rental company policy when you compare available cover at Excess Buddy.