Car hire companies are failing customers when it comes to providing affordable car hire insurance, new research from moneymaxim.co.uk reveals.

Car hire companies are failing customers when it comes to providing affordable car hire insurance, new research from moneymaxim.co.uk reveals. Research from Moneymaxim.co.uk, the website behind the UKs only car hire insurance comparison service, shows that car hire insurance purchased from car hire companies direct is in terms of real-benefit one of the most expensive forms of insurance there is.

The typical daily cost of hire car insurance from a rental company desk is around £10 a day, which translates to £3,650 per annum, although the total excess covered is normally only around £1,500, and often is even less. In some cases however the situation is even more extreme. Mark Bower, Managing Director at Moneymaxim.co.uk explained. One example we found was a case from European car rental giant Sixt.

The cost of extending collision damage and theft waivers to reduce the excess payable to 500 in the case of an incident was an incredible £123.28 for a weeks hire. That is equivalent to an annual premium of £6,410 for a policy with a maximum benefit of 1,500! Using the moneymaxim car hire insurance comparison service it is possible to find a policy that provides better cover - reducing the excess to nil, and covering the vehicles wheels, tyres, glass and underbody for as little at £13.30 for 7 days cover, or less than £40 for an annual policy.

Research from Which? published in January highlighted insurance charges and undisclosed cover details on car rentals as potential problems of hiring a car abroad and the Moneymaxim research, highlights the need for customers to shop around and buy their car hire insurance before they go abroad. Continuing Mark Bower at Moneymaxim.co.uk says: Not only is it cheaper but car rental companies offer a poor product that typically fails to protects customers from extortionate excess charges for things like a broken wing mirror, chipped windscreens or tyres that have clipped a curb.

Thanks to the markets we can expect less Euros and Dollars for our pounds when we head abroad this summer, so making savings wherever possible through things like car hire insurance is always advisable ensuring you have more money to spend on the more enjoyable things we all like to do on holiday.

Cars hired in Europe come with insurance that typically excludes the first £1,000 of a theft or damage claim. This can leave holidaymakers seriously out of pocket even for a relatively minor incident. In the US and Canada the position is slightly different, with cars coming either inclusive or exclusive of insurance and customers having the option to buy their insurance at the car hire station or independently.

Notes.

Examples of expensive car hire insurance cover:

Example 1 Sixt car rental Fiat Bravo 7 days 19th May to 26th May 2010. Includes Collision Damage Waiver with an excess of 1,500, and Theft Protection with an excess of 2,000 Total Rental Cost £245.04 (283.84)

Example 2 Sixt car rental Fiat Bravo 7 days 19th May to 26th May 2010. Includes Extended Collision Damage Waiver reducing excess from 1,500 to 500, and Extended Theft Protection reducing excess from 2,000 to 500 Total Rental Cost £368.32 (426.64)

Mark Bower, Managing Director of moneymaxim.co.uk

The moneymaxim.co.uk car hire excess insurance comparison service compares prices from the following companies: Blue Insurances Ltd, carhireexcess.com,icarhireinsurance.com, insurance4carhire.com, insuremycarhire.com, intasure.com, Odyssey Insurance, protectmybubble.com, Questor Insurance and worldwideinsure.com

Background Information on the Car Hire Excess Insurance Market

The car hire excess insurance industry was 'created' back in 2002 when Larry Ursich launched Insurance4carhire. Having a background in the car rental business he realised that the cost of 'insuring the excess' when renting a car from hire firms had grown to such a level that there was potential to create a standalone product offering both better cover and lower costs for consumers.

Over the past 8 years further firms have joined the market, the latest,icarhireinsurance, entering the market in March, 2010. The new entrants have brought with them options and innovation and those looking for this type of insurance can find policies covering not just the hire car excess, but baggage loss, carjacking, cancellation and more. Policies catering for car club members have also recently been introduced.

Source moneymaxim.co.uk May 2010

N.B. This information should not be relied on for accuracy and is presented here without the responsibility of jml Property Service and the website it is being displayed at. jml property Services 05-10

See also: Odyssey Car Hire Insurance the Latest Addition to the Moneymaxim Car Hire Insurance Search Engine - May 2010

Back to top

Renting a car?

xxxxxxx

_______________________________________

Return to Car Hire Excess Blog Notes Info