Why Choose an Annual Car Hire Excess Insurance Policy?

If you are hiring a car, then a car hire excess insurance policy can give you that extra assurance that you are covered should you be charged not only any of your excess but also for damages to the glass or wheels of your rental car. But when should you consider an annual policy rather than the single trip option?

When you run a quote for car hire excess insurance with MoneyMaxim, we ask a few important questions to ensure the results you are shown will fit with your needs. These questions include the type of vehicle you are driving, where you are hiring, your country of residence, the level of cover you need and your age.

Depending on your answers you may have results which include single trip and annual policies.

What are the benefits of an annual excess policy?

Cover more than one hire

If you have more than one hire in the year, then consider covering both under one annual policy. It is more than likely, if your combined hire days total more than 16, that it will work out cheaper.

Save money on longer hires

If you have one hire but it is over around 16 days in length, you may notice that in your results, an annual policy costs less than a single trip policy.  The single trip option is calculated by day so once you get to around 16/17 days, it becomes more expensive than the annual cover.

Cover more than one lead driver

There are annual policies available that will cover more than one lead driver.  This can work well if yourself and your partner, family member or friend both want to hire cars each in your own name during the same 12 months but do compare with the price of two separate single trip policies.

Include garage or courtesy cars

Some annual policies can include cover for a courtesy car excess. You are often not aware that you will be allocated a courtesy car until the last moment, so, having a policy already in place can take away some of the stress. Insurance is usually provided by the garage but you are liable for an excess should the car be damaged.

Allow for last minute bookings or extensions

When you opt for a single trip policy, you will have matched the dates and times to your hire. If you then decide to extend your hire, you would need permission from the car rental company. However, you are unlikely to be able to extend your excess insurance cover. With an annual policy in place you can have the option to extend your car hire or book a last minute vehicle rental confident in the knowledge that you have excess insurance in place.

What are the limitations of an annual car hire excess insurance policy?

Trip length restrictions

While opting for an annual policy can save you money on a 3 or 4 week holiday compared to a daily single trip, there are restrictions. The longest trip that any of our current providers can cover under an annual policy is 62 days. If your hire is longer than this then you would need to choose a single trip policy.

Specialist vehicle cover

Annual cover is not available for larger or more specialist vehicles such as cars or minivans with more than 9 seats, campervans, motorhomes, or vans.

Different cover needs

If you have two hires but one needs a higher level of insurance cover than the other, it can be more cost effective to buy two separate policies. If you buy one annual policy to cover the higher needs, you may be paying out for months’ worth of unnecessary cover. This is why we recommend comparing your options before you purchase.

Policy Limits

Policies all have a Total Excess Claim Limit which is for the duration of the policy. If you were very unlucky and had to make a large claim with your first hire, you could find yourself having used up your policy limit. However, you could see this as getting good value from your excess insurance and you can always purchase another policy before your next hire!

No policies will cover you if you drive outside the terms and conditions of your rental agreement, nor if you are negligent which includes drink-driving or driving off-road. Always read through your excess insurance policy carefully as they may have restrictions.

Need help?

Head to our contact page and we will be delighted to answer any queries you may have.