What is Car Hire Excess Insurance?

You may come across the term car hire excess insurance when considering rental car insurance. When you are hiring a car in US, UK or abroad, it is essential to get adequate insurance.

These rental car insurance may cover your large financial expenses if you were to have an accident and damage the third parties property or vehicle. Even though it may save you a fortune, the insurance providers may ask for some excess amount. This will vary as per the conditions in your rental insurance policy

There are two main ways of paying for your hire car excess insurance. One is buying from your rental car company and the other is purchasing from a specialist hire car insurance provider. In most situations, the company that you pick up your rental car may advice you to take car hire excess insurance.

Another option is buying from a standalone car hire excess insurance provider. These providers are registered with and regulated by the UK's financial Service. In addition to their expertise in their field, they often offer cheaper tariff that that arranged by the car rental companies.

Advantages of Car Hire Excess Insurance

You may think hire car excess insurance as an unnecessary expense. However, Car hire insurance will protect you from paying any excess costs out of your own pocket. It will reimburse the excess amount that world be paid for any excess charges in case of accidents.

A typical rental car insurance may not cover number of issues such as damage to the under body and tyres of the rental car. These parts may be damaged easily. Unlike such basic rental car insurance policies, the excess car hire insurance will cover the damage to the tyre, glass and under body of the rental car. 

Besides one can go for additional coverage that incorporate dragging costs, misfuelling, missing keys, luggage, personal accident etc.. These hire car insurances enable to tailor your policy as per your needs.

Types of Car Hire Excess Insurance

There are two types of car hire excess insurance packages. One can avail daily or annual packages. You can purchase these policies prior to your schedule car rental.

As the name implies, annual insurance would cover for a period of one year. Annual car hire excess is more suitable if you travel frequently. By purchasing annual car hire excess insurance policy, you can enjoy year round cover for multiple car rental periods. They provide worldwide coverage. In Daily hire car excess insurance package, you will pay for the just number of days you will actually be traveling and renting a car.

Even though, the premium of annual policy is just around ten times the daily package, if you are a frequent traveler, this is a great choice. This helps you to get rid of worrying about any excess charges even if you travel the whole year.

When choosing insurance for car hire excess policy, it is important to check whether the coverage is available all over the world if you would require traveling from one country to another.

Claiming annual car excess insurance is very simple. If you go for standalone car hire excess insurance companies, then you can claim reimbursement of the excess paid from your excess insurer. Internet is a great place to compare excess insurance form different insurance providers in one place.

What are the aspects to consider?

If you are a frequent traveler, then annual premium is a good choice. If you are not a frequent traveler, then daily insurance cover is more than enough. The car hire excess insurance policy only pays for the excess on your rental insurance. So, it is vital to have rental cover in place.

If you are hiring a car in Europe, ensure to take insurance especially for Europe. If you are taking out annual package, make sure it would cover all over the world. If you rent cars on regular basis, it is wise to take out annual insurance policy as it saves bucks.

It is obvious that if something happens to the rental car, the excess amount would be taken from your credit card directly by the rental car company. Thus, they get the money. Hire car insurance comes in handy to pay the excess. First you have to settle the excess amount to the rental car company. 

Subsequently, your car hire excess insurer will repay the amount compensated by you in return. If you want to have the best holiday possible, ensure to look around at some of the car hire excess insurance policy.