Expensive Excess Car Hire Insurance

It was found out that British vacationers waste more than £800 million a year collectively by purchasing costly "excess" insurance from car hire firms. Research also confirms that in Europe, more than £1 billion are spent by drivers of rental cars every year on excess cover alone – and much of it are unnecessary.

Insurers predicted that within the next year, 255 million cars will be rented in Europe, of which 45% of the car drivers will take out "excess" cover to reduce their liability to nothing in case of an accident or damage. Car rental desks charge an average of £9.99 daily for top-up insurance, which is charged on top of the rental fee. Buyers have no choice but to take it out when it is time to pick up the car.

Note that excess car rental insurance does not include "vulnerable" car parts. And consumers can actually pre-buy this from independent suppliers online at a much cheaper price – as low as £2.99 daily, saving them as much as £49 weekly. For some online suppliers, this amount is already good for a year's unlimited cover on all car rentals in Europe.

Unfortunately, most car hire companies do not mention anything about this excess insurance until renters come to pick up the vehicle, which leaves the consumers no choice. The fact that this insurance excludes vulnerable vehicle parts, drivers could still be in a lot of trouble.

Online car hire insurance suppliers offer a more comprehensive coverage for a lower price. This will not only cover the driver in the event of damage or theft, but also covers tires, windows, roof and undercarriage. For an additional £19.99, cover may be extended for all car club rentals.

If consumers opt to pre-buy these policies, they need to authorize the excess of the car hire company on their credit card. This amount will be taken by the company in case of a claim. The driver can then claim the amount back from the insurance agency.