When traveling outside your country, one of the things you consider is the mode of transportation you will use to move from one place to another when in the new country. Traditionally, many people opted for cabs and public transportation. However, car rental companies currently allow tourists to rent vehicles in a new country. While this is highly convenient, it also comes with its challenges. Driving on foreign roads with different road rules increases the risks of accidents. The car models also differ in different countries. This is where car rental excess insurance comes in.
What is car hire excess insurance?
This is an optional coverage that protects you from excess costs in case of an accident or unwarranted damages to a rented car. One of the most frequently asked questions about this topic is, “do I need excess protection car hire?” Understanding how car hire excess coverage works will help you answer this question.
How does car hire excess insurance work?
When you buy car rental excess insurance, it offers you protection if your rental car gets damaged or stolen when you possess it. For instance, if you get in an accident with a rental car and it gets damaged, the rental company expects you to cover the repair costs. You do not have to cover all the repair costs with car hire insurance. For example, if the damage is worth 1000 dollars, the insurance company will cover a portion of the payment, depending on your agreement and type of cover. Therefore, you only have to pay the remaining amount. The amount of money the insurance company pays also depends on the cost of your policy. The charges may differ depending on the insurance company. It also depends on the period of coverage, like annual car hire excess insurance.
Types of excess insurance for car rental
There are two types of car hire excess insurance, daily and annual. The primary difference between the two is that daily insurance policies are usually available for up to sixty days at a time, and yearly policies go for an entire year. With a daily policy, you can enjoy coverage from anywhere in the world. However, you will also need to take out a new policy with each rental agreement. On the other hand, annual car hire excess insurance allows you to cover your excess up to sixty days at a time for an entire year.
If I have car hire excess cover, do I need to purchase the additional cover offered by the rental company?
The most straightforward answer to this question is NO. You do not need to get additional coverage as car rental excess coverage gives you all the mandatory protection you need. However, this depends on the rental company. Some rental companies demand that you purchase their mandatory additional cover. This means that you cannot drive away with their rental vehicles without extra cover. On the other hand, some rental companies offer you the freedom to decide whether or not you need additional coverage. When determining the best thing to do, it would be wise to get all the necessary data about car hire excess insurance compare it with the rental company’s cover.
Is it worth buying car hire excess insurance?
Yes, buying car hire insurance is worth it. It will give you peace of mind when driving around in a rented car in a new location. While no one would imagine getting into an accident, it is always better to get protection instead of assuming. Car hire excess coverage also saves you from spending a lot of money covering repair costs for a rental car. Insuring a rental car also gives the rental company peace of mind. This is why a lot of rental companies demand that their clients purchase insurance policies.