When you go to a car hire company, you not only pay for the use of a car for the day (or however long you need it) but also the cost of insuring it too.
You might think that that would be the end of the matter: you’ve got insurance, so you’re covered. But here’s the thing: if you do get involved in an accident, you may still be liable to pay out a vast sum of money.
Here’s why. When a car hire company lends you a car for the day, they want to keep the price as low as possible. The way that they do this is by transferring risk to you, the driver. Instead of paying the full cost of insurance for the time you have the car, you pay just part of it and then must cover the rest if you happen to get into an accident. The fact that you have to pay some of the insurance after the fact cuts the direct cost of cover for the car hire company, enabling them to charge lower daily fees.
What Is Car Hire Excess Insurance?
Insurance companies call your contribution in the event of an accident the “excess.” It doesn’t matter whether you write off the vehicle or scratch it, the excess you pay will be the same.
If you take a look at the small print of most car hire companies, you’ll see that while you are legally insured, you will be forced to pay a large excess, often more than £1,000, should you damage the vehicle. The chances that you have an accident might seem low, but can you afford to pay out £1,000 if the car hire company makes an insurance claim? And even if you can, do you want to?
This is where car hire excess insurance comes in. You can think of car hire excess insurance as an insurance policy for your insurance policy. If you do get into an accident in a hire car and the hiring company makes an insurance claim, car hire excess insurance will cover the cost of the excess for you, meaning that you don’t have to pay the £1,000 out of pocket.
The great thing about excess insurance is that it is usually inexpensive and gives you peace of mind. Car hire excess insurance can be bolted on to your existing insurance policy,
covering you throughout the year.
Do You Need It?
Car hire excess insurance is helpful for anyone hiring a car, but it’s particularly beneficial for those who regularly travel and rely on using hired vehicles at their destination. The more miles you do in hire cars per year, the higher your risk of an accident, and the greater the risk of incurring excess fees.
Car hire excesses have gotten out of control in recent years and, in many cases, negate the purpose of having insurance in the first place. With our car and hire car excess insurance, you can protect yourself against these potentially harmful terms and conditions.