Excess is part of most insurance policies. It can confuse many people and make them unsure what they are actually being given by their insurance providers.
There is often a lot of small print to read when hiring a car and many terms are often misunderstood or not made clear to the person renting the vehicle. However it is vital that you know exactly what you will be covered against before taking out a particular policy. Moreover you must be happy that you understand the terms and conditions of the excess and understand your responsibilities.
Tip one: know what it is
People often misunderstand excess and what it actually means. When you make a claim there is often a compulsory amount of money that you will be forced to pay. This usually makes up an amount of the first part of your claim. For example, if you made a claim of £1,500 and were in agreements with your insurance company to pay an excess of £500 then you will be forced to pay the first £500 of your claim with the remaining £1,000 coming from the insurance company.
Tip two: know how much to pay
Excess is not always the same and varies a lot between different companies. The amount you have to pay may also vary between the countries that you decide to travel in as well as the amount of voluntary excess you agree to pay on top of the compulsory excess.
Costs are usually factored on a daily rate for hire cars and will also vary depending on which company you decide to hire your car from and the make and model of the car that you hire. Know how much you are expected to pay and look at options for car hire excess insurance if you are worried that you’ll struggle to cope with this cost.
Tip three: know why it is needed
The reason that you have to pay excess is that the insurance you get when you rent a hire car doesn’t give you complete protection. Not all the components of the car are covered under the insurance policy and protecting your excess with suitable insurance can provide additional protection.
Tip four: know what it covers
It is important to clarify exactly what is covered by your chosen insurance policies. This means reading the fine print and taking note of all of the exclusions and inclusions associated with the policy.
Tip five: know where to get it
Comparing prices from leading insurers and obtaining insurance through a firm you can trust is always recommended. Always take the time to consider where you are getting your insurance from – after all, your protection is not something which should be rushed.