Holidaymakers in Europe Warned of Overpriced Car Hire Insurance Policies
Are you planning a holiday in Europe and thinking about renting a car? Well, before you sign on the dotted line at the car hire desk, you might want to consider this important piece of advice: check your rental car deal for insurance policies that could be costing you way more than necessary.
Recent research from Which? has revealed that car hire companies in Europe are charging exorbitant prices for insurance excess waivers, with some policies costing up to £199 at the car hire desk. However, savvy travellers can find alternative policies online for as little as £16 – a significant saving that could make a big difference to your holiday budget.
When you hire a car in Europe, basic insurance is typically included in the rental price. However, this insurance comes with an ‘excess’ clause, meaning that you may have to pay a contribution towards repair costs if the car is damaged, regardless of fault. Common issues like a puncture or a damaged windscreen can end up costing you hundreds of euros, so it’s important to be prepared.
To avoid getting ripped off by overpriced insurance policies at the car hire desk, travellers have two options. You can either purchase a super collision damage waiver (SCDW) policy from the rental firm, which removes or reduces the excess, or buy an excess reimbursement insurance (ERI) from a third party. The latter option, available directly from insurers or via your car hire broker, allows you to claim back the excess in case of damage to the vehicle.
Which? compared the standard of cover provided by SCDWs from major car hire firms in Malaga, Spain, and found that on average, travellers would pay £177 for a SCDW from the car hire firm, compared to just £38 for an ERI from a broker, or £23 if purchased directly from an insurer. The difference in cost is staggering, and the level of cover offered by ERI policies is often superior to that of SCDWs.
For example, Budget and Avis offer some of the most expensive and lowest-rated policies, with cover options missing for common issues like misfuelling, lost or stolen keys, and curtailment. On the other hand, top-rated ERI policies from insurers like Cover4rentals.com and Worldwide Insure offer comprehensive cover at a fraction of the cost.
So, before you hit the road on your European holiday, make sure to do your research and find the best insurance policy for your rental car. By avoiding the overpriced policies offered by car hire companies, you can save money and enjoy peace of mind knowing that you’re fully covered in case of any mishaps. Happy travels!