When you rent a car, you are usually offered a Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) insurance which can cover the cost of damage to the rental car in case of an accident. However, these waivers often come with an excess, which means you are still liable to pay a certain amount towards the damage. This excess can be quite high, often ranging from £500 to £2,000, depending on the rental company and the type of car you rent. This is where car hire excess insurance comes in.
What is Car Hire Excess Insurance?
Car hire excess insurance is an additional insurance policy that covers the excess amount you would have to pay if you damage the rental car. This insurance can be purchased separately from the rental company or from a third-party provider. It can also be bought as a single trip policy or as an annual policy that covers you for multiple trips throughout the year.
Why Do You Need Car Hire Excess Insurance?
Car hire excess insurance is important because it can save you a significant amount of money in case of an accident. If you don’t have this insurance, you will be liable to pay the excess amount out of your own pocket, which can be a huge financial burden. By purchasing car hire excess insurance, you can protect yourself from this risk and enjoy your rental car with peace of mind.
What Does Car Hire Excess Insurance Cover?
Car hire excess insurance typically covers the excess amount you would have to pay if you damage the rental car. It can also cover additional costs such as damage to the windows, tyres, and undercarriage of the car. Some policies may also cover the cost of a replacement rental car if the original rental car is damaged beyond repair.
What Doesn’t Car Hire Excess Insurance Cover?
Car hire excess insurance does not cover everything. Most policies come with exclusions such as damage caused by driving under the influence of alcohol or drugs, reckless driving, or driving on unpaved roads. It is important to read the policy terms and conditions carefully to understand what is and isn’t covered.
How Much Does Car Hire Excess Insurance Cost?
The cost of car hire excess insurance varies depending on the rental company, the type of car you rent, and the duration of your rental. Third-party providers typically offer more affordable policies than rental companies. An annual policy can also be more cost-effective if you rent cars frequently throughout the year.
How to Buy Car Hire Excess Insurance?
You can buy car hire excess insurance from the rental company or from a third-party provider. It is usually cheaper to buy from a third-party provider. You can purchase the insurance online before your trip or at the rental desk when you pick up the car. It is important to compare different policies and read the terms and conditions carefully to find the best coverage for your needs.
Benefits of Annual Worldwide Car Hire Excess Insurance
If you rent cars frequently throughout the year, an annual worldwide car hire excess insurance policy can be a convenient and cost-effective option. This policy covers you for multiple trips throughout the year, no matter where you rent your car. It can save you time and money compared to buying a single trip policy every time you rent a car.
Conclusion
Car hire excess insurance is an important policy to consider when renting a car. It can protect you from the financial burden of paying the excess amount if you damage the rental car. By purchasing an annual worldwide car hire excess insurance policy, you can enjoy peace of mind and save money on your car rental costs throughout the year.
