Covers people aged 21-84. Up to £2000 excess covered per claim (to total of £3000 per rental agreement) / $80,000 on WW rentals. Insures up to 6 people on policy. Annual policies continuous duration no longer than 31 days - unlimited trips / daily policies no longer than 180 days in one trip. Near home rental available and dual lead driver - see T's and C's for more information
Archive for the ‘Rental Car Excess Insurance’ Category
What might you need from your rental car hire insurance?
If you are planning a trip – at home or abroad – what is it that you are likely to need from your rental car hire insurance? The chances are that your answer is going to include such things as:
- peace of mind;
- security; and
- the reassurance that being in charge of an expensive vehicle – which is also capable of causing damage or injury to others – will not leave you personally liable for making financial reparations (to the rental company for repairs to or replacement of the vehicle or to third parties for any injury or damage).
Some element of rental car hire insurance is widely included in the rate you see advertised by your chosen rental company. The typical insurance package included in this way is designed to give you the security and peace of mind that you will be meeting the minimum insurance cover required by law in the country in which you will be driving.
It is possible that your peace of mind is disturbed, however, by the knowledge that the level of cover being offered in this way is also subject to a significant insurance excess. Depending on the part of the world in which you are likely to be driving, and on the vehicle itself, this excess could range from several hundred to well over a thousand pounds. An excess, of course, is the first part of any claim which will be borne by you personally – it is, effectively, an uninsured risk you agree to bear.
Because this excess can represent such a potentially large uninsured risk, therefore, many drivers seek to enhance their basic rental car hire insurance with excess insurance to protect themselves against such risks.
Similarly, and once again depending on just where you’re likely to be driving, the minimum level of third party cover extended via your vehicle rental agreement might be enough to meet local legal requirements but could fall far short of the insurance you might need to meet all potential third party claims. In those cases, you might want to consider Supplemental Liability Insurance, which gives considerably enhanced indemnity against third party claims – typically up to as much as one million US dollars (or its equivalent in local currency).
For complete security and peace of mind regarding your rental car hire insurance, therefore, you might wish to arrange cover from an independent insurance provider (many of whom advertise online), to ensure that your insurance includes any necessary excess insurance, adequate third party cover, and full protection against your potential liability for any other damage to the hired vehicle.
What does rental car excess insurance involve?
When you hire a car, you may have insured the vehicle under your own private motor insurance, or bought a policy suggested by the car hirer. But have you considered rental car excess insurance?
Insurance agreements involving hire cars often have higher excesses than policies that cover private motor vehicles. Some policies typically insist on an excess of up to £1,000. So if your hire car is involved in a road traffic accident, you will have to pay the repair bill in full if the damage costs less than that amount. Alternatively, you will have to meet the first £1,000 of repair costs if they are above that amount (or whatever the excess amount is).
Rental car excess insurance is designed to bridge that gap, and ensure that you do not have to fund the cost of the excess on your “main” policy.
Here are a number of questions to ask yourself about the excess policy before you sign on the dotted line.
Who does the policy cover?
If a group of you are using the hire car on holiday, make sure that everyone who intends to drive the vehicle is named on the policy. Otherwise the policy could be found to be void (in which case the insurer would not pay out) if there is an accident when someone else was driving.
How long does the cover last for?
Policies are usually able to mirror the length of the hire agreement, and may sometimes be available on a daily rate or annual basis. This is helpful if you are unsure how much longer you will need the hire car. For example, perhaps a garage is taking a while to repair your own car, and you need to drive and insure the hire car on a day by day basis.
Is there a geographical limit for the cover?
Whether you have rented the car for a holiday or for business use, make sure that the rental car excess insurance applies in the country or countries that you will be visiting. Some European policies have restrictions about crossing borders, and it is always safest to check if you are unsure about any part of the cover.
Does the policy cover glass?
When hiring a car most people just arrange their insurance and put it to the back of their mind. After all, the point of insurance is not to have to worry about the costs of repairs. However, there might be a number of “holes” in the cover offered by many car hire policies. Some exclude damage to glass or tyres. So if you were unlucky enough to experience an accident or an act of vandalism where damage was caused to the glass and/or tyres of the hire car, you could find yourself in the position of having to account for the cost of the repairs for these items to the rental company.
The safest way to insure your hire car may be to look at rental car excess insurance in conjunction with your regular policy, to make sure that the excess insurance plugs any gaps. That way you can have peace of mind that you have the cover you need, at a price that suits your budget.