Hiring a car gives you the freedom to travel on your own terms. But when you’re asked about adding on extras, the choices can feel overwhelming.
After you book a car, you’ll usually be asked if you want to upgrade or add on extras. Do you need GPS? A baby seat? There’s a lot to think about and you might be tempted to decline everything to avoid any extra costs.
But car hire excess insurance is something you should seriously consider; especially if you’re planning on hiring a car abroad. If you’re in an accident, no matter how minor, having a policy can save you from paying the car hire company’s hefty excess.
Below, we answer the most commonly asked questions about car hire excess insurance…
What is car hire excess insurance?
Just like your car is insured in case it’s in a crash, you can also be insured against the cost of insurance. The cover you take out for your rental car will pay for any repairs, but there’s always an excess you have to pay before the insurance kicks in.
With your own car, you might choose to ignore small damage if it doesn’t make sense to pay the excess. But when it’s not your decision, you’ll be asked to pay that money no matter how small the scratch, chip or dent.
If you take out car hire excess insurance, that will kick in and cover that money.
Do I need car hire excess insurance?
While car insurance is a requirement to be on the roads, car rental excess insurance isn’t a necessity. But, like with many forms of insurance, it can be nice for your peace of mind.
If you’re hiring a car in Italy or somewhere else where the roads and driving styles aren’t what you’re used to, it can be reassuring have extra coverage. Knowing that your bank balance is safe no matter what happens can help reduce the stress of being on the road, leading to a more enjoyable holiday.
What does car hire excess insurance cover?
Every policy is different, so finding the best car hire excess insurance changes by person. As a rule, they cover the cost of excess for rental cars, but not everything is always included.
As noted above, there are generally limits on trip lengths (normally around 60 days for most premiums). Some policies will have a financial limit too – up to somewhere between ₹6L and ₹10L.
There are three common problems that not all policies include:
- A lost or missing key isn’t always a default choice, and it’s one that often comes with a smaller limit.
- Covering the cost of using the wrong fuel (eg putting diesel in a petrol car) might not be fully covered.
- Damage to tyres, windscreens and the underbody might not always be fully covered either.
How does car hire excess insurance work?
Like with other types of car hire insurance, you pay per day. Every company will charge differently based on factors like driver’s age, where in the world you are and the type of vehicle you’re driving.
If you need to make a claim, rather than you paying the excess, your insurance policy will. Sometimes you may need to make the payment initially and then receive the money back later on, but when all’s done and dusted you’ll be no worse off (other than your daily costs).
With excess payments often in the hundreds, paying a much smaller cost over a short holiday generally makes sense.
What are the benefits of buying car hire excess insurance?
There are two main benefits of taking out car hire insurance excess cover.
The first is financial. If you have an accident in a rental car, you will likely pay hundreds of pounds. If you’re lucky it may be around ₹5000, but more likely it’s going to be ₹10,000 or more. Paying (normally) less than ₹100 a day to get rid of that payment makes a lot of sense to someone who’s just been in an accident – or had their car damaged while they’ve been nowhere near it.
The other is psychological. If you’re worried about the cost of excess, it’s going to play on your mind. Not just while you’re driving, but generally throughout your holiday. And if something does happen to your car, it can ruin the rest of your trip knowing you have a huge bill coming.
Tips to get cheaper car hire excess cover
Nowadays, most car hire agencies will try to sell you excess insurance as an upgrade. It’s not normally the best deal, but it is very convenient to get everything through one place. Looking at third-party providers can often save you money – so long as they cover the right things.
If you travel a lot, you can sign up for an annual policy with some providers. They’ll have certain limits – like the length of an individual trip – but generally they’re good value for money. Generally, a premium for having a hire car in Spain for a week is about half the cost to cover car hire excess across Europe for an entire year.
Although there’s great value to be had with third-party insurance policies, booking a hire car for your next holiday is a great way to see a bit more of a country while you’re there. Worried about too much driving?
As well as finding the cheapest flights and hotels, Skyscanner can help you get the best deals on car hire, too.
