14 May 2024

The Ultimate Guide to Understanding Excess Insurance Coverage | MoneyMaxim

Learn how you can save on car hire with our guide on excess insurance coverages. Understand the benefits, types, and how to compare policies with MoneyMaxim

Are you wondering where to start with arranging excess insurance cover for your car hire? Don’t worry, the team at MoneyMaxim is here to help you navigate this landscape and find the great deal for your needs.

Read on to learn more about car hire excess insurance and how to make sure you’re adequately protected during your travels, whether that’s in the UK or further afield.

What is insurance excess?

Insurance excess, often simply called an "excess," is the amount you're responsible for paying towards a claim before your insurance provider covers the rest. Think of it as your share in the risk. For example, if you have an excess of £250 and make a claim for £1000, you'll pay the first £250, and your insurer will cover the remaining £750.

Excess is a fundamental concept in insurance policies because it deters small, unnecessary claims and ensures that policyholders have a stake in the risk being covered.

How does car hire excess insurance work?

When you hire a car, the rental company usually includes a basic insurance policy in your agreement. However, this policy often comes with a high excess — which can be a nasty surprise if you need to make a claim.

Car hire excess insurance steps in to cover this risk. It's a separate policy that specifically covers the excess amount you would have to pay in the event of damage to or theft of the rental car. These policies work on a reimbursement basis which means, if something happens to your hire car, you can claim back the excess fee from your car hire excess insurer, should you be charged by the car hire company.

Types of car excess insurance policies

There are several types of car hire excess insurance policies to suit different needs. Understanding the types of policies available will help you choose the right coverage for your situation, ensuring you're not paying for unnecessary extras.

• Daily excess insurance: Ideal for short-term rentals, you purchase this policy for the duration of your car hire period.

• Annual excess insurance: A cost-effective option if you rent cars frequently, or if you are renting for more than 16-18 days in one policy year. These policy cover multiple rentals throughout one year.

• European and worldwide coverage: Depending on where you're travelling, you can choose coverage that suits your geographical needs.

At MoneyMaxim, you can compare a range of European and Worldwide car hire excess insurance policies — from a One Week European Excess Policy to an Annual Multi-Trip Worldwide Excess Policy. You can also explore policies specific to Canada and the USA.

CDW (Collision Damage Waiver) policies: This is often already included in rentals in Europe and worldwide when you book through a UK website but you should always check.. If you have booked through a smaller rental company, or through a US website for example, you may need to take out your own cover. CDW policies through MoneyMaxim also cover theft and waive you of having full responsibility for the cost of repairs should there be an accident or theft (provided you are driving within the terms and conditions of your rental).

Supplemental liability insurance: This offers additional liability coverage beyond the rental company's policy, providing extra protection if you're held responsible for causing injury to another person or damage to their property.

Benefits of buying car hire excess protection

So, is it worth purchasing car hire excess protection? While it might initially seem like an additional expense, it’s worth noting the key benefits it can bring. These include:

1. Cost savings

By choosing a separate policy, you often find much lower premiums, providing an effective way to reduce your overall rental costs. This approach not only saves you money upfront but also ensures you're not overpaying for cover you might not need, making it a smart financial decision for savvy travellers looking to maximise their savings.

2. Peace of mind

Knowing you're covered for the excess amount allows you to enjoy your rental experience without the worry of potential costs from damages.

3. Flexibility

You can choose a policy that matches your travel plans, whether it's for a single trip or multiple rentals throughout the year. With MoneyMaxim, you can compare your options to find insurance that suits your destination, vehicle type, and trip duration.

4. Comprehensive coverage

Many car hire excess insurance policies offer coverage that's more extensive than what's provided by rental companies, including protection for parts of the vehicle often excluded, like tyres and windscreens.

Compare car hire excess insurance with MoneyMaxim

Remember, the right car hire excess insurance policy not only saves you money but also provides peace of mind throughout your travels.

At MoneyMaxim, we understand that every penny counts — and that's why we're committed to helping you save on your car hire excess insurance. With our leading comparison tool, you can easily compare car hire excess insurance policies from various providers to find one that offers the best value for your needs. We've assisted hundreds of thousands of users in saving millions of pounds on their hire car protection.

If you need support in other areas, we can also help you compare insurance options for your vehicle hire, travel plans, leisure activities, and more.

Start comparing with MoneyMaxim, and feel free to get in touch if you have any questions.