The big question is obvious – to insure, or not to insure? The risk to your wallet can be considerable since the excess can run to thousands of pounds, so it’s essential you know your options and pay close attention to the small print. Insurance is a legal requirement in many countries, but that doesn’t mean you need to take out cover every time you hire a car :
- If you’re renting for business, your employer’s insurance will probably cover the hire car, and it may be as simple as adding your name and a copy of your license to the policy.
- If it’s personal, check your regular car cover – there may be a way of adding on hired cars as part of your annual policy, which can save considerable hassle and expense if you hire cars frequently.
- Credit card holders may also enjoy rental car insurance as a perk of annual membership, so it’s a good idea to check with your provider to see what’s available.
However, if you decide to insure with the rental company, they’ll tell you all of your options and you should expect to find them confusing. That’s what they want. What they won’t tell you is that insurance is a tidy little earner for them, with a third of rental customers often over-paying for insurance that doesn’t always provide the cover they need.
Insurance will generally cover theft, damage to the vehicle and third-party cover, but the biggest danger here is the excess you will have to pay should you make a claim. The amount varies hugely between companies, and can be anything from £500 to £2,000. This means that you’ll be liable to pay for a broken tail light, dented bumper or cracked windscreen out of your own pocket, even if it wasn’t your fault.
Those on the inside track are taking a relatively new option. They take out rental car excess insurance, which covers any money paid as excess on claims made on rental cars. Taking out insurance on your insurance may seem excessive, but prices are low (a couple of quid if you pay for a single day, and much less if you pay for an annual policy) and the peace of mind it provides really makes a difference.
Anyone who’s had to pay through the nose for someone else’s mistake will tell you the same. After all, you can never be too careful – especially when other drivers aren’t.
