A car hire excess policy is a policy explicitly designated for people renting vehicles. It is not limited to a single country as people moving from one country to another can still use it. Although it is not mandatory to have a car rental excess policy, it is imperative to have it since it recompenses you for the excess spent in the event of an accident or theft with your rental vehicle.

Is it Worth Buying Car Hire Excess Insurance

Most car rental companies will include a cover known as Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) insurance when you hire a car. However, most rental companies will not disclose to you that the policy is usually attached to a large compulsory excess fee. Therefore, in case of vehicle damages or theft, you will be liable to pay the extra fee, which can prove to be costly in the long run. In this case, therefore, it is worthwhile to have a car hire excess policy to avoid the risk of huge out-of-pocket expenses in case something terrible happens to your rental. . Below are some of the reasons why you need a car hire excess insurance:

1. Excess Charges Can Surpass Your Expectations

When you hire a car, you are provided with the amount to pay if the car is stolen or damaged. Usually, the average vehicle policy does not cover these additional costs. Therefore, in the event of damage or theft, you will be required to cover the cost. Unfortunately, these costs can exceed your expectation if you hire a speciality or luxury car. With an excess car hire policy, the entire liability is transferred to the insurance company, and therefore no need to pay these charges in case of damage or car loss.

2. Future Uncertainties

No one likes to imagine being involved in an accident or other distressing experience on the roads, especially if you’re an exceptional driver. However, car renters, especially those traveling abroad, have to drive on unfamiliar roads. Therefore, no matter how experienced you are on the streets, chances of uncertainties remain high. For instance, hail storms can hit, vehicles may collide, or someone may decide to steal the car entirely.

The unfortunate fact is that you will be held accountable for any damages caused to the car while under your care, whether you are the one responsible or not. Although getting a rental car excess insurance can cause you additional expenses, it allows you to avoid those hefty excess charges.

3. Helps to Save Money

With a car rental policy, you can save a more considerable portion of your money as the policy permits you to reclaim excess costs. You are also protected from additional charges you would be liable in case your rental vehicle is damaged or stolen. In addition, the policy has exclusions that you can claim. For example, car renters are covered from costs related to lost keys and locks, carjacking, road rage, lockout charges, and drop-off charges since the insurance company will cover the cost.

4. It’s More Affordable than You Think

Rental car excess insurance is not as expensive as people think. For instance, if you buy an independent car hire excess insurance policy, it can cost you lesser than the normal price. Also, if you are a frequent traveller, an annual policy could even save you more money.

Make Use of the Car Hire Excess Policy

Before you dismiss the car hire excess policy, ask yourself whether you can afford to incur the extra charges if something goes wrong. The fact is, every car renter needs this policy since it benefits them significantly if the need to pay an excess fee arises.