Car hire insurance - the hidden facts
When you hire a car, if you're in Europe and using a major hire company, there's a pretty good chance that your rental deal will include car hire insurance.
At least, it will to a certain extent.
Typically, a rental car insurance included in the rental price deal will provide you with:
- third- party liability coverage (there is a legal minimum in the UK and most European countries)
- there will be some type of CDW (Collision Damage Waiver) that will protect you by paying for damages to the hired car when it is leased to you.
This sounds like you are in the clear, right? Unfortunately, there are other items to consider.
These items include:
- rental deals in some countries, including the United States, may offer very little insurance, which will have to be purchased separately.
- the CDW cover provided may contain a number of exclusions and excesses that mean in the event of an accident you may still have to pay the hire company as much as perhaps £1600 even though you have their insurance.
These extra costs will typically be charged directly to your credit card.
Many rental companies may offer the option for signing up for top- up insurance that removes the excess costs, as well as other potential costs, although there are certain conditions attached.
However, you may be interested to know that if you purchase similar or even more comprehensive top- up protection from a direct rental car insurance provider, you may be able to get cover that is significantly more cost- effective.
This works typically by reimbursing you for any excess and related charges (as specified by the policy) that you may receive from the rental company.
Typically it will cover:
- excess and excluded car area damage charges:
- personal coverage
- baggage insurance
- lockout and lost key protection
- drop- off charges
When you sign up for these extra coverages, you want to make sure you read your policy carefully, since there will be exclusions, limitations, conditions, and terms that will apply to your coverage.
The extra charges that arrive on your credit card following an accident may be shockingly high.
By taking out extra car hire insurance, you can protect yourself in case an accident occurs. You should carefully research the costs and consider getting the coverage directly from the car hire insurance company to save money.
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