Don"t Forget Car Hire Excess
Car hire excess is that part of the risk of hiring a car that remains uninsured.
It can catch out the unwary, who might be tempted into believing that the rental company's assurance that the hire car comes "fully insured" means just that.
In fact, the insurance cover offered by the rental company is usually subject to an excess - which is the sum representing the first part of any bill for the replacement or repair of the hired vehicle.
And that first part of any such bill rests with the individual hiring the car.
As a result, the unfortunate hirer could end up paying the whole of the car hire excess following even a quite minor accident.
Typical excesses in the UK are £600 and rise to £1,500 in some parts of the world.
This is obviously a significant sum for the hirer to pay from his or her own pocket, yet does not often go very far in paying for many repair bills.
It is because of this significant financial risk to the customer that most car rental companies offer the sale of an insurance policy either to reduce or to completely cover the cost of the excess.
Since many customers are taken aback by the size of the excess, but only discover its existence when they arrive at the check-out desk to pick up the hire car, they frequently feel under considerable pressure to buy the rental company's product.
At this late stage in the day, however, they have little opportunity - and little choice - to check whether the price of the excess insurance represents a fair market rate.
With just a little preparation and forethought, however, it is possible to arrange car hire excess insurance completely independently of the car rental company.
Products are available from independent insurance specialists that allow the customer to buy such insurance in advance of the planned journey and before the hire period starts.
The cover can be arranged to protect against the excess charged from any rental outlet, anywhere in the world, to cover most makes of vehicle (although most policies will be subject to specific terms and conditions which might limit the type of vehicle hired and/or the total replacement value of any hired vehicle).
Furthermore, car hire excess insurance bought in this way can generally be arranged on a daily basis, with the premium based on the number of days it is intended to hire a car, or on a single premium annual basis, which provides permanent cover throughout the year for any number of car rental agreements.
The benefit of the latter, of course, is that the frequent traveller need never worry about the last-minute purchase of expensive excess insurance bought directly from the car rental company.
The claims procedure for such independently purchased car hire excess insurance is simple and straight forward.
In the event of any damage, the rental company will generally debit the customer's credit card with the whole or part of the excess amount (depending on the cost of repairs), and the customer can then claim that amount in compensation from the insurance policy on his return home.
It can catch out the unwary, who might be tempted into believing that the rental company's assurance that the hire car comes "fully insured" means just that.
In fact, the insurance cover offered by the rental company is usually subject to an excess - which is the sum representing the first part of any bill for the replacement or repair of the hired vehicle.
And that first part of any such bill rests with the individual hiring the car.
As a result, the unfortunate hirer could end up paying the whole of the car hire excess following even a quite minor accident.
Typical excesses in the UK are £600 and rise to £1,500 in some parts of the world.
This is obviously a significant sum for the hirer to pay from his or her own pocket, yet does not often go very far in paying for many repair bills.
It is because of this significant financial risk to the customer that most car rental companies offer the sale of an insurance policy either to reduce or to completely cover the cost of the excess.
Since many customers are taken aback by the size of the excess, but only discover its existence when they arrive at the check-out desk to pick up the hire car, they frequently feel under considerable pressure to buy the rental company's product.
At this late stage in the day, however, they have little opportunity - and little choice - to check whether the price of the excess insurance represents a fair market rate.
With just a little preparation and forethought, however, it is possible to arrange car hire excess insurance completely independently of the car rental company.
Products are available from independent insurance specialists that allow the customer to buy such insurance in advance of the planned journey and before the hire period starts.
The cover can be arranged to protect against the excess charged from any rental outlet, anywhere in the world, to cover most makes of vehicle (although most policies will be subject to specific terms and conditions which might limit the type of vehicle hired and/or the total replacement value of any hired vehicle).
Furthermore, car hire excess insurance bought in this way can generally be arranged on a daily basis, with the premium based on the number of days it is intended to hire a car, or on a single premium annual basis, which provides permanent cover throughout the year for any number of car rental agreements.
The benefit of the latter, of course, is that the frequent traveller need never worry about the last-minute purchase of expensive excess insurance bought directly from the car rental company.
The claims procedure for such independently purchased car hire excess insurance is simple and straight forward.
In the event of any damage, the rental company will generally debit the customer's credit card with the whole or part of the excess amount (depending on the cost of repairs), and the customer can then claim that amount in compensation from the insurance policy on his return home.
