Hiring a car on holiday, or for business, is often the best way to get around, but those extra insurance costs, like compulsory excess, can soon add up. At the point of vehicle collection you don’t have a choice, but some advance planning can save hundreds of pounds.
Insurance4carhire conducted a survey of 1000 UK residents who had hired a car in Europe in the last 12 months. Based the responses:
· Almost a quarter of car renters claimed to have experienced ‘compulsory excess cover’
· 40% of drivers surveyed have ended up paying more than they expected to for their hire car
· Excess insurance from a third-party provider such as insurance4carhire could save you £130
While Brexit has pushed British holidaymakers to be cost-conscious in their holiday choices, thousands of Brits continue to holiday in Europe each year – and many are likely to be overpaying for their car hire excess cover if they are buying it at the rental desk.
Although car hire excess insurance is not a legal requirement, it is a popular choice as excesses can range from £500 to more than £1400. With over 1 in 10 respondents reporting to have made a claim on their excess insurance in the past, it can provide peace of mind – but not so much if it comes as a large, unexpected cost at the beginning of a holiday!
Car hire companies will generally offer their own excess cover at the rental desk. However, it tends to be on a single trip basis and can be more costly than a single trip or even an annual multi-trip policy from a third-party provider like insurance4carhire.
Research carried out by insurance4carhire comparing an insurance4carhire Annual Europe policy to cover a week-long car hire in Spain, versus equivalent cover from seven car rental companies (which would be offered on a single-trip basis) showed an average saving of just under £130. What’s more, an annual policy from insurance4carhire will even cover the excess on a courtesy car loaned to you if your own car is out of service.
For the quarter of respondents who claimed to have experienced ‘compulsory excess insurance’ at the rental desk, this shows a real gap in knowledge when it comes to the rules and procedures around car hire excess insurance.
With this in mind, insurance4carhire has put together a guide to common hidden costs and how to avoid them when hiring a car.
Adam Summersby from insurance4carhire commented:
“Though holidaymakers tend to plan their trips well in advance with budget being a key consideration, car hire excess costs are often left until the last minute, meaning people are left to buy expensive excess polices from the rental desk, or risk paying high excesses. This potentially puts a dent in people’s pocket before their holiday has even started. However, with a little planning, buying before you pick up your car could save you hundreds of pounds.”