Car Hire Excess Insurance

Car Hire Excess Insurance

Car Hire Excess Insurance

It’s that time of the year again and lots of you will take the opportunity for a holiday abroad. Many of you will also need to hire a car while on your holiday and it’s a good idea to consider some extra insurance to cover your costs should you have an accident while driving. Excess insurance for hire cars is a notoriously tricky area. The hire car companies will offer optional products like “Collision Damage Waiver” and “Theft Protection” which sound great, however almost all come with a “Non Waivable Excess” which can be anything from €500 to €3,500 depending on the hire car company policy and the type of car you hire. The more expensive the car, the higher the excess.

Collision Damage Waiver is an optional service offered by car hire companies which if accepted, reduces your financial liability for damage to your vehicle including parts and accessories, provided the vehicle is used in accordance with the terms and conditions of your rental agreement i.e. you don’t use it for an unintended purpose such as delivering goods if you hired for pleasure use. Be careful because some policies I looked at excluded theft or attempted theft or vandalism and you needed a separate “Theft Protection” policy for that!

This is all very confusing so I did a little bit more research and looked at the fine print for hiring a car from Hertz as part of a Ryanair booking. When you hire the car online the price includes both CDW and Theft Protection, with a warning that an excess applies to both, however there is no information about just how much the excess is. I dug a little deeper. I eventually got to the FAQ which explained the services and the amount of the excess. For my Opel Corsa booking the non-waivable excess is €1,050.03. That’s not too bad I suppose, if I hired a BMW 7 Series, the excess would be €2,800! The website also gave another piece of valuable, if not scary information. If you decline the CDW protection and are unfortunate enough to have an accident you will be responsible for what is called a “deductible”, which for the Corsa is €15,000. Incidentally for the BMW 7 Series it’s €90,000!

It’s a good idea to take a few minutes to read carefully through your rental agreement and ask questions. It’s also important to check your car fully for scratches or any damage when you pick it up and take some photos before you drive off, just in case!

The moral of this story is that you should definitely accept the CDW and Theft Protection policies but it’s also well worth considering car-hire excess insurance. For a small fee you can protect your car booking and enjoy total peace of mind while on holiday.

Check out our great rates for car hire excess insurance online or call us today on 1890 549549 to speak to an insurance specialist.

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You can also email us for more information at info@futureinsurance.ie