What is car hire excess insurance? (And is it worth it?)
Car hire excess insurance isn't compulsory. But is it worth paying for? Find out in our 5-minute guide.
When you hire a car, it should be straightforward. You pick it up, give it a quick once-over, grab the keys and off you go. Simple, right?
Well, here at MVH Rental, we certainly try to keep things as straightforward as possible. But on top of the basics, there are a few extras you should be aware of.
We're talking about things like additional drivers, collision damage waivers (CDWs) and the subject of today's article: car hire excess insurance.
These bolt-ons aren't
essential
for a pleasant rental experience. But they can provide a little more flexibility or peace of mind.
And if you're new to car hire, they can be a tad confusing too.
Fear not. We're here to give you the scoop on car hire excess insurance, so the next time you hire a car you'll know exactly whether you need it or not.
So, what is it?
When you hire a car, you can expect some level of insurance to be included in the price.
This works much like the car insurance for your daily driver. If the worst happens and you get into a scrape, the insurance covers the car hire company – and, depending on the level of cover, you – for some or all of the damage.
However, you will still have to pay an agreed excess. As with any type of insurance, this means the amount you'll pay towards the damage before the insurance payout kicks in.
This can be quite daunting. Depending on the car you hire, the excess can stretch anywhere from £400 to £1,800 – sometimes even more.
This is where car hire excess insurance comes in. Quite simply, it means you won't have to pay these excess charges if something does go wrong.
It's important to note that excess insurance is an additional insurance product. It's not typically included in the standard insurance policy you receive when hiring a car.
Some car hire firms offer excess insurance as a bolt-on. More often, you'll buy it from a third-party insurance provider.
But do I really need it?
Let's set the scene.
You hire a car, you don't take out excess insurance and the worst happens. Suddenly, you have a bill of £400 or more to pay.
Or, you include excess insurance and drive blissfully (but carefully) knowing you're clear of charges should anyone decide it's time to play wacky races.
Of course, we don't have a crystal ball. It's impossible to know whether you'll end up needing excess insurance until, well, it's too late.
It all comes down to this: is peace of mind important to you? If so, it might be worth paying a little extra to protect your purse.
And remember that it's not necessarily about
you.
You could be the most careful driver in the world. But you never know when you might run into someone who passed their test with crawling colours.
How much is it?
As with most travelling insurance, the later you leave it, the more costly it can become.
Insurance products such as excess insurance can fluctuate. That's why it's important to get something in place as soon as possible to get the best price.
If you type "car hire excess insurance" into your favourite search engine, you'll be able to arrange your own cover and input all the necessary details in a matter of minutes.
Cover is available from as little as £3.50 per day (but bear in mind that this changes with the market daily). With a little bit of shopping around, you could grab yourself a bargain alongside that priceless peace of mind.
Is excess insurance the same as a collision damage waiver?
No. A collision damage waiver (CDW) or loss damage waiver (LDW) is a different type of insurance cover.
A CDW protects you from paying the full cost of damage to your hire car. However, you'll still have to pay the excess.
Car hire excess insurance is an extra level of cover – on top of a CDW – that protects you from paying the excess as well.
Some vehicle hire firms combine both types of insurance into a "super CDW". If you choose this option, you'll be covered for
all
costs.
Anything else I should know?
When arranging car hire excess insurance through comparison sites, you'll often see additional cover options such as windscreen, key loss and tyre cover. These additions usually only cost an extra few pence, so they're worth considering.
And one final note. When looking for independent car excess insurance, make sure the provider you use is regulated by the FCA. This shows that you'll be covered by a legitimate provider.
So, next time you hire a car, you'll be well up to speed on the different options available to you – and with knowledge comes power (and peace of mind).
About MVH Rental
If you're looking to hire a vehicle in Gateshead, Newcastle or Sunderland, why not head to MVH Rental? We offer many
different types of rental cars – and all are provided with a full valet and safety check as standard.
With something to suit everyone's needs – from hatchbacks to saloons to long-wheelbase vans – it doesn't matter whether you're planning a road trip or a whole house move. Our helpful staff will get you on your way with a smile.
