“Car Hire” by Nick Youngson is licensed under CC BY-SA 3.0 via Pix4free.org
Hiring a car for your next holiday? Understanding car hire excess insurance before you collect the keys could save you hundreds of euro. Here’s a simple five-step guide explaining what it is, how it works and whether you really need it writes Christian Bennett from CarHireExcess.ie
What is car hire excess?
Under your rental agreement, you will have agreed to a car hire excess charge. This is the amount that you have to pay for repairs if your hire car is damaged while you have it. These charges imposed by the car hire companies can be quite high, even for small repairs, but renters can also avail of a specific insurance policy from a specialist insurance provider, that can cost much less and that provides cover specifically for those costs. This policy needs to be purchased before you sign your rental agreement.
Does my rental company provide this cover?
The cover provided by rental companies is known as a damage waiver. The most common types of these are super damage waiver and tyre and windscreen cover. However, it’s worth noting that these can be expensive. A recent study3 looking at the cost of 1 week’s car rental, put the average combined cost of these waivers at almost €340.
In contrast, a policy taken out for 1 week from specialist provider CarHireExcess.ie starts at just €24.754. Annual European policies begin at €48.994 per year, with worldwide coverage also available.
Do I have to inform my rental company that I have an existing policy?
Agents at car hire desks offer a range of add-ons, such as damage waivers, when you pick up your vehicle, which come at an additional cost. You aren’t required to have a car hire excess policy with your rental company and if you have purchased one before you travel you are already covered on this point. You aren’t required to inform the rental company that you have an existing policy.
Do I still have to pay if the car is damaged if I have a car hire excess policy?
A car hire excess insurance policy operates on an excess reimbursement basis. This means you are repaid for any excess or repair costs you have to pay the rental company (up to the policy limit) under the terms of your agreement, following damage to the rental vehicle.
How do I get a policy?
Car hire excess policies are usually available online which gives you the flexibility to purchase it at any stage, even after you’ve begun your holiday, so long as it’s before you sign your rental agreement. Be aware you’ll need to bring a credit card when picking up your rental car, as most rental companies require it for the security deposit.
