Car hire excess insurance

Are you renting a car for your next cross-country adventure? If so, you may be asked whether or not you want to add a type of car insurance to your total expense, also known as car hire excess insurance. What exactly is this coverage, and how can it help ensure safe travels for you and your loved ones? Join BrokerLink as we give you the lowdown on what you need to know before your next trip

What is car hire excess insurance?

Excess insurance for car rentals is a kind of protection aimed at protecting drivers from financial responsibility in the event that their rental car is damaged, stolen, or lost. A deductible sometimes referred to as an excess amount, is usually included in the rental agreement when you hire a car from a rental company. In the event that the rental vehicle is damaged, this is the amount you will have to pay out of pocket before the car is repaired or replaced—similar to how comprehensive or collision insurance works!

What does car hire excess insurance cover?

So, now that you have a better idea about this type of car rental excess insurance, it's also essential you understand what exactly is covered under the terms and conditions. Essentially, it's important to carefully check the details and limitations of your specific insurance, as the coverage may differ between rental companies. That said, the following is a closer look at what is usually covered by excess automobile rental insurance:

Excess reimbursement

The main objective of excess insurance for vehicle rentals is to pay back the extra money that you must pay to the rental company in the event that the vehicle experiences damage, is stolen, or is lost. This covers any expenses related to replacement, repairs, or any other fees mentioned in the rental contract.

Damage to the rental vehicle

This insurance typically covers unexpected events, collisions, vandalism, and other accidents. This coverage can encompass the vehicle's bodywork, paint, and interior, among other parts.

Theft or loss of the rental vehicle

Another common component that is covered is the sum related to theft if the vehicle is stolen or deemed lost while under rental. Personal items that were inside the stolen car may also be covered by specific insurance. However, this depends on the policy.

Specific part coverage

Specific components of the vehicle that are frequently left out of standard rental agreements are typically protected by this additional coverage. This could cover things like the roof, glass, and tires, which are often areas where damage can happen.

Key coverage

If keys are lost or stolen during the rental time, some policies cover the expense of replacing or reprogramming them. This could offer an extra advantage that minimizes unforeseen costs if something happens.

Additional coverage

Certain policies for excess car hire insurance may cover not only the extra cost but also additional related costs like towing charges, admin fees, and even expenses incurred if you cannot return the vehicle for reasons outlined in the policy.

Coverage for multiple rentals

Policyholders may be covered for numerous rental periods by annual or multi-trip automobile rental excess insurance within a predetermined time frame. Regular automobile renters who travel often can benefit from this.

It is important to remember that excess insurance for vehicle rentals excludes coverage for driving while intoxicated or under the influence of drugs, off-roading, intentional damage, or other infractions of the rental agreement. Furthermore, coverage limitations and exclusions may vary, so it's critical to carefully review the specifics of your particular policy to make sure you fully comprehend the coverage offered.

What are the benefits of rental car insurance?

Rental car insurance offers numerous benefits to travellers they may not be aware of. Therefore, if you're planning on renting a vehicle in the future but aren't sure whether additional coverage is worth it, take a look at some of these advantages in more detail below:

Financial security

The simple fact that excess insurance for car rentals covers the extra amount mentioned in your rental agreement is its main advantage. In other words, this insurance can cover the costs you would have to pay yourself to the rental company in the event of damage, theft, or loss of the car.

Savings on excess reduction costs

Most car rental businesses provide excess reduction plans, which may be called loss damage waiver (LDW) or collision damage waiver (CDW). However, it's important to note that these versions typically come with daily costs that tend to add up quickly. So, purchasing excess insurance can be a more affordable option if you want to avoid paying excess reduction costs to the rental company.

Comprehensive coverage

Car hire excess insurance may provide broader protection to motorists. This could include coverage for components often excluded from standard agreements.

Flexible policies

These kinds of policies often come in a variety of shapes and sizes, so you can select the coverage that best suits your needs. There are policy alternatives to suit various scenarios, whether you're planning a single trip with your travel trailer or several rentals over the course of the year.

Extra peace of mind

Having excess insurance for your auto rental can provide you peace of mind. You can focus on having fun on your trip rather than worrying about possible costs arising from unforeseen accidents.

Is travel insurance the same as car rental excess insurance?

We understand why many motorists confuse travel insurance and car rental excess insurance. However, there are distinct coverage options that serve a different purpose. Here is a closer look at the two below:

Comprehensive protection

Travel insurance is a comprehensive policy designed to cover a range of unforeseen events that can happen during your travels. This includes medical emergencies, trip cancellations, lost baggage, travel delays, and other related risks.

Health insurance

Medical coverage is one of the main features of travel insurance. It usually offers coverage for emergency medical evacuation, medical costs, and the return to your home country in the event of illness or injury sustained while travelling.

Trip abruptions and cancellations

A common feature of travel insurance is coverage for unplanned events like illness, a passing in the family, catastrophic natural disasters, or other situations that result in trip cancellations or disruptions.

Delayed or lost baggage

Travel insurance may also provide replacement coverage for clothing and other necessities in the event your baggage is delayed, lost, or stolen.

Travel assistance

Travel aid services, which include 24/7 helplines, medical care coordination, and help with travel arrangements, are a common feature of travel insurance coverage

Car hire excess insurance for travelers

Car hire excess insurance is specifically tailored to cover you if you rent a vehicle while you are travelling.

Focused on additional charges

Car rental excess insurance serves the primary function of compensating you for the excess costs imposed by the rental company—that is, the amount you would be required to pay yourself in the event of a claim.

Vehicle specific insurance

This insurance is concentrated on the particular hazards connected to renting and operating a vehicle, such as accidents, theft, and any damage to the rental car, whereas travel insurance covers a wide variety of dangers related to travel in general.

Ultimately, car rental insurance is a specialized policy that explicitly handles the financial risks involved with renting a vehicle. In contrast, travel insurance offers broad coverage for travel-related issues, such as baggage, health, and cancellations. It might be advantageous to have both kinds of coverage for complete protection, depending on your travel arrangements.

Am I covered by my policy for a rental car?

You may be wondering, Am I covered by my policy for a rental car? The truth is, it really depends on what type of auto insurance policies you hold and the terms and conditions stated within each of them. Speaking with your insurance company directly is the best way to confirm your coverage.

Ask detailed questions concerning coverage limits, types of coverage liability, comprehensive, collision, and any applicable exclusions or limitations when you get in touch with your insurance company. You may also want to ask them whether the coverage extends to international and domestic rentals.

Talk to your insurance carrier about extra coverage alternatives if you feel that your current coverage is insufficient or if you are worried about possible gaps. They can offer advice or recommendations to improve your safety while renting a car.

Do you need rental car insurance?

Another question you may have is: Do you need rental car insurance? Rental car insurance requirements vary depending on a number of variables, such as your current insurance coverage, the kind of vehicle you're renting, where you're going, and how much of a risk tolerance you have. Let's examine this more closely below:

Individual auto insurance

Individual auto insurance often covers rental cars, but the specifics can vary. Read on to learn more:

Extension of coverage

A lot of auto insurance policies provide liability, comprehensive, and collision coverage for rental cars. Examine your policy documents or get in touch with your insurance company to find out the extent and limitations of your rental car coverage if you already have it as part of your insurance coverage.

Options for insurance from rental companies

If your individual auto insurance doesn't provide sufficient coverage, rental companies usually offer two types of insurance options. Below, we'll explore these extra coverage options to help you make an informed decision for your rental car needs:

Collision damage waiver (CDW) or loss damage waiver (LDW)

Rental vehicle companies usually provide CDW or LDW, which lessens or eliminates your financial liability for damage to the rental car. Other names for CDW and LDW include collision damage waiver and loss damage waiver. These options are convenient but frequently have daily costs that can add up quickly and be incredibly expensive.

Liability insurance

Rental companies may also provide liability insurance to protect against third-party property damage and injuries. That said, it might be optional if you already have this kind of coverage.

International rentals

When renting a car internationally, make sure your auto insurance covers foreign rentals. Verify your insurance's validity and check for any potential exclusions. Read on to find out why:

Validity of insurance

Make sure your current insurance is still in effect in the place you're renting a car if you're travelling abroad. International rentals may be subject to restrictions or exclusions under specific policy rules.

Think about your risk tolerance

Think about your risk tolerance when renting a car. Knowing how much risk you're willing to accept can help you decide if additional insurance is necessary. Below, we'll discuss the potential risks and benefits:

Financial risk

Determine how much financial risk you can take. You may decide not to purchase additional rental car insurance if your personal auto insurance provides comprehensive coverage and you feel secure enough with your current level of coverage

Peace of mind

On the other hand, getting rental car insurance might be a wise decision if you want even more peace of mind and want to pay as little out of pocket as possible in the event of an accident.

Whether or not you need rental car insurance depends on your unique situation. Assess the coverage you now have, read the conditions, think about the options available to you, and take your risk tolerance into account. When in doubt, getting in touch with your insurance company for tailored guidance will help you decide what's best for your particular circumstances.

What to do if you’ve damaged a hire car vehicle

In the event that you were involved in a collision or other incident where your rental car is damaged, it's essential that you take the proper steps to ensure the situation is handled responsibly and efficiently. Here is what you should do if you ever find yourself in this position:

1. Ensure you're safe: Put safety first. Examine yourself and others for injuries and provide first aid if required. Make an instant call to emergency services if the accident is severe.
2. Speak with authorities: To report the accident, give the local police a call. Follow what they say and get a copy of the police report.
3. Notify the rental company: Use the emergency contact number listed in the rental agreement to speak with the rental company directly. Give specifics about what happened, such as the place, the time, and the extent of the damage.
4. Record the scene: Record the accident scene in great detail, taking pictures and videos of the damaged rental car, the other cars involved, and any relevant road signs or other evidence. It would be best if you also took note of the time, date, and weather.
5. Exchange your information: Provide the other persons involved in the collision with your contact information, insurance details, and specifics about the rented car. Record the witness's name and contact details as well.
6. Get witness statements: If there are witnesses, obtain the contact details and information from them. In the claims process, their insight could turn out to be valuable.
7. Complete rental company forms: Follow the accident reporting guidelines provided by the rental company. Fill out all incident report forms correctly and give a thorough explanation of what happened before the accident.
8. Check your insurance coverage: Examine your own auto insurance policy to find out how much is covered for rental automobiles. To report the incident and learn more about the claims process, get in touch with your insurance company. Note that this will differ depending on your policies and whether you purchased car rental excess insurance before your trip.
9. Know what liability you hold: Clarify your liability with the rental company. Understand the excess amount you may be responsible for and how the rental company will handle repairs.
10. Follow up on any repairs: Regarding repairs, keep in contact with the rental company. To ensure transparency, get written quotes for the cost of services and ask for detailed invoicing.
11. Coordinate with your insurance company: When submitting a claim through your own vehicle insurance or extra insurance for a rented automobile, be sure to include all required paperwork as soon as possible. Maintain a record of all correspondence, including contact information and claim numbers.
12. Address legal issues: Speak with an attorney if a legal issue comes up. They can assist in maintaining your rights and offer advice on any potential legal consequences.
13. Learn from what happened: Use the experience as an opportunity for self-reflection. Also, remember that accidents can happen at any time, which is why rental car insurance is crucial if you are getting behind the wheel of a car you are borrowing.

Why am I not covered by my car rental excess insurance?

Your car rental excess insurance may not protect you in some circumstances for a number of reasons. Here are some explanations as to why:

• Your insurance coverage may be affected if the rental agreement conditions are violated.
• Insurance may be refused if an accident or damage is not reported in a timely manner.
• Coverage may not remain in place if your excess car rental insurance policy has expired or you haven't paid the premiums.
• Some policies may not cover additional drivers not listed in the rental agreement. Coverage might be impacted if an unauthorized driver is involved in an incident.
• Providing inaccurate information during the insurance application process may affect coverage.

Examine your car rental excess insurance policy carefully to make sure you understand the extent of your coverage, and if necessary, get in touch with your insurance provider for clarification.

Contact BrokerLink today

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Car hire excess insurance FAQs

Is it worth getting excess protection on a rental car?

Yes, it's generally worthwhile to get extra protection while renting a car. Although your personal motor insurance may cover specific components, excess protection adds another degree of security to your finances. It provides peace of mind throughout your rental term by protecting you against the excess amount you would otherwise have to pay in the event of damage, theft, or loss. When weighed against the excess reduction alternatives provided by rental companies, this coverage can be pretty affordable, helping to mitigate unforeseen costs and save you money. In the end, extra protection is an excellent decision for a worry-free rental experience that will help you appreciate your travels more.

What is the best way to cover rental car excess?

Having separate excess insurance for your rental automobile is the best option for excess coverage. Compared to rental companies' extra reduction options, it's often more affordable and offers full coverage, including areas that are often excluded. To determine which policy best meets your needs at the lowest cost, do some research and compare those offered by reliable companies. This can be used to build a strong strategy that will guarantee you the best protection and peace of mind during your rental time, together with your personal auto insurance.

Will travel insurance cover car hire excess?

Depending on the exact policy, car rental excess may be covered by travel insurance. A rental car excess benefit is a feature of some all-inclusive travel insurance plans that reimburses you for the excess amount you would be responsible for in the event of loss, damage, or theft. It's essential to establish the scope of rental car excess coverage by carefully reading the terms and conditions of your travel insurance policy. To guarantee complete protection during your trip, it’s a good idea to think about standalone car rental excess insurance if this coverage is inadequate or not included. Always get clarification from your insurance provider on the details of your coverage.

If you have any questions, contact one of our local branches.