Car hire excess insurance: why it’s cheaper to buy before you fly

Car hire excess insurance policy

Arranging car insurance excess cover at the rental desk is an expensive business. It’s also a needless expense, as highlighted by one new car hire excess insurance policy.

Launched by RAC Insurance, the cover provides excess protection of up to £6,000, plus protection against fire, theft and vandalism. It costs £42.99 for an annual policy, or £2.99 a day.

Holidaymakers face excesses of between £500 and £2,000 in the event of an accident. The excess is pre-authorised on a credit card for the duration of the hire period.

Car hire excess insurance cover

Excess insurance can be purchased at the car rental desk, but comes at a cost.

This leaves customers with one of two options: take a financial hit by taking out the excess policy or risk not doing so in the hope that nothing happens to the vehicle during the loan.

‘Not enough people realise this is an option’

Car hire companies

Arranging car hire excess insurance BEFORE you travel is a cheaper option, with RAC Insurance the latest provider to offer cover. Marcus Latchford, RAC head of insurance, said: “The trouble is not enough people realise this is an option, so they end up losing out financially by buying expensive hire car excess insurance policies, often with a lower level of cover or, worse still, having to pay the excess.

“We need to make more people aware that very affordable UK alternatives exist, so it becomes second nature to take out a policy before travelling. This is why we decided to enter the market as we believe a hire car excess policy with the RAC’s name on it will give people some much-needed peace of mind when renting vehicles.”

RAC policy: the details

  • Excess protection: up to £6,000
  • Protection against: fire, theft and vandalism
  • Cover for bodywork, tyres, roof, windscreen and undercarriage
  • Cover for towing, breakdown and mis-fuelling excess costs
  • Up to 65 days’ continuous cover on any one rental agreement
  • Option to book daily single trip and annual policies up to 180 days in advance
  • Cover for up to nine additional drivers as standard

Car hire excess insurance isn’t new; RAC is just the latest company to offer protection.

Other policies are available online: simply search for ‘car hire excess insurance‘ and select the cover that’s right for you.

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