Have you been ripped off by a rental company? Unfortunately so many people each year start their holidays off by feeling forced into purchasing the extortionately priced excess insurance offered at the car rental desk!
You have probably been made aware of some of the difficulties people have experienced when hiring cars when reading the horror stories online! It is a shame that people are facing such difficulty in these situations and as a company, we are trying to combat the rental company’s conduct!
It is a rare occasion, however it has been brought to our attention that a small minority of rental companies are attempting to refuse Excess insurance provided by third party companies, and instead scaring customers into purchasing their own extra protection at a daily rate. Please see below some useful information which could stop you from falling into this trap!
Knowing your Insurance:
Many people are unaware of what the term ‘excess’ means. So let me explain; when you rent a vehicle, you should have 2 types of insurance in place:
- Third party insurance/liability insurance – this will cover you in the event that you cause any damage to another person or their property.
- CDW (collision damage waiver) – this is the insurance that covers the full value of the vehicle and will leave you liable for an excess fee. In the event that the vehicle is severely damaged, the costs could be up to the amount of the entire vehicle retail price! In which case, you will then only be liable to pay the excess fee! This is typically between £500 - £2,000.
Rental company tactics
When you arrive at the rental desk, you will be badgered to purchase the excess insurance (to cover the excess fee) from the rental company, and this is where the inflated prices come in! So, why is it so expensive? The reason that the excess insurance is so expensive at the hire desk is because the rental company lower the rates of their core product and the employees are earning a commission each time they sell you an excess policy, and this is the reason that they can be so pushy.
It is really important to understand that Excess insurance is non- mandatory meaning it is not required by law. If you want to be liable to pay an excess fee, you can! Obviously, most people prefer not to. Excess insurance purchased elsewhere should not be refused by the rental company unless it states in their terms and conditions that they do not accept insurance provided by a third party insurer.
So what do they do now?
Rental companies have caught on to the fact that customers are choosing to purchase their insurance with third party companies and this means that they are not earning their commission. It has been brought to our attention that their new tactics include increasing the excess charge held on your credit card! The amount held is still generally between £500 - £2,000, however as you would expect, people are hesitant to leave this amount, and most people do not even obtain this limit on the credit card!
Unfortunately, we cannot change their terms. Though, it may be worth knowing that they will only keep this charge in the event of damage and once the repairs have been carried out, they should refund any difference owed to you after you request a final repair invoice.
How do you know Questor Insurance will work?
It may be reassuring to see our feedback reviews from customers who have used our insurance and have known exactly where they stand when it comes to Car Hire Excess Insurance, click here to see our feedback.
If you would like to find out more about Excess Reimbursement Insurance, click here to get your Car hire quote.
Date Created: 26/11/2015