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Holidaymakers are being hit with extortionate prices for car hire insurance by those at rental desks, new research has found.
According to TravelSupermarket, some customers had paid up to £160 more than they needed to for a car hire excess waiver, when compared to what can be purchased as a standalone policy.
It comes as the majority of car hire firms are actively encouraging their customers to take out an excess waiver to cover the excess – often between £500 and £2,000 – on the standard car hire policy.
By taking out a car hire excess policy, that figure is reduced to £0 in the event of a claim, although the policies on offer at hire desks could cost nearly 600% more than those that can be purchased online via a third party.
As a result, travellers could be paying up to 90% more for their car hire than is necessary, driving up the cost of their holidays.
For the research, the price comparison website looked at prices for damage and theft excess cover for a period of eight days and compared that with a set price for a specialist stand-alone policy for the same period.
Major airports across Europe, including at Faro in Portugal, Barcelona El-Prat, Malaga and Alicante, all in Spain, and Pisa in Italy were studied, as they are among the most popular locations for car hire on the continent.
Holidaymakers need to pay close attention to what is offered in policies too, as damage to tyres and windscreens is not always included with excess insurance policies – meaning they could end up paying more for less cover.
Confused.com editor Amanda Stretton has led calls for government action on the back of the research to ensure that customers get fair deals on car hire.
At least one car hire firm at Barcelona El-Prat, Alicante, Malaga, Palma in Majorca, and Paphos in Cyprus were found to be charging at least £175 for the eight day policy.
Even in Lisbon and Faro, the cost of the most expensive add-on policy at a hire desk was four times that of a standalone car excess policy.
Purchasing car hire excess insurance via an independent third party in advance of your trip will cost considerably less than if you purchase at the rental desk.
Get a quote today to discover how little you could pay for insurance cover.
Date Created: 29/07/2019