Hiring a car when on holiday is a great way to get about and explore new countries. But research from Gigasure, has found that many travellers are being ripped off by car hire companies who charge so much for car hire excess insurance that it can often cost more than hiring the car.
For example, 8 days of car hire rental for a standard compact vehicle in Spain with a popular rental company costs £291.41. The cost of their insurance purchased for the same duration is £348.43 – this amounts to 54% of the total hire car cost of £639.57.
For comparison, a single European standalone car hire excess policy with Gigasure for the same duration costs £27.24, a saving of up to £610 on a two-week holiday and up to £360 on a week\’s break.
Car hire comes with basic insurance as standard. However there is an \’excess\’ – the amount which the customer must pay for any damage before the insurance reimbursement kicks in. Excess amounts can typically range from £500-£2,000 so many choose to take out car hire excess insurance to cover this gap.
Gigasure’s analysis of car hire excess costs highlights that car hire excess cover offered by rental companies is an expensive way of getting cover.
Here their CEO shares five ways to avoid being ripped off by rental companies:
- Be organised: Don\’t buy car hire excess insurance on the day you travel. It\’s far easier to make decisions at home, away from others and without the pressure of being at the rental desk.
- Be informed: Do your research and choose a policy that offers the right level of cover for you. If you travel and hire a car frequently, a yearly policy may offer greater value for money. Many policies sold by the major car hire companies often have gaps in their coverage. Familiarise yourself with the terms and conditions of your policy so you know exactly what you are, and are not covered for.
- Buy a standalone policy: Not only does this offer you better protection, it will save you hundreds of pounds.
- Stay firm and say no: When you\’re at the rental desk, you may be offered \’Damage Waiver\’ or \’Super collision damage waiver\’ insurance. But this is basically another name for Car Hire Excess Insurance – and if you\’ve already got it, you don’t need anything extra. Stay strong and say no. Sales people can use high pressure tactics at the rental desk to scare you into purchasing add-ons and insurance but you don’t need them.
- Take evidence: To avoid being stung with charges for damage you didn\’t cause, when collecting your car, take time to walk around and note down any scratches or scrapes that are already on the car. If you can, take a video of the car so you have a record of this. On return, repeat the process with a representative from the car hire company before you sign it back in.
Ernesto Suarez, CEO, Gigasure, said: “Car hire companies are well-known for using harsh tactics to frighten customers and make them buy additional cover or pay for extras they don’t need. After a long day of travelling, you just want to collect the car and hit the road. Car hire companies know this and many are taking advantage of the situation.
“Do your research and buy a standalone policy before you travel so you know that when you get to the desk, you just need to collect the keys and be on your way.”
