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0 Car hire excess is a crucial concept to understand when renting a vehicle. It refers to the amount you are liable to pay if the rental car is damaged while in your care. Knowing how car hire excess works can help you avoid unexpected costs and ensure a smoother rental experience.
Understanding Car Hire Excess
Car hire excess, also known as the deductible, is the portion of a claim that you must pay if the rental car is damaged. While basic insurance policies, such as Collision Damage Waiver (CDW), cover most repair costs, they often leave you responsible for an excess amount. Investopedia goes into further detail regarding what a CDW is.
How Much is the Excess?
The excess amount varies from supplier to supplier, typically ranging from £500 to £3,000. Choosing a rental company with a lower excess can significantly reduce your potential out-of-pocket expenses in case of an accident. It’s wise to check the excess amount specified in your rental agreement to avoid any surprises.
Am I Always Liable for the Full Excess?
You are only liable for the cost of repairs up to the excess amount specified in your rental agreement. For instance, if your excess is £2,000 and the damage costs £300, you will only pay £300. However, it’s important to note that some damages, like those to tyres and windscreens, may not be covered by standard policies.
Avoiding Excess Charges
One way to avoid high excess charges is by purchasing car hire excess insurance to cover these costs. This insurance can be bought from the rental company, a specialist third-party insurer such as www.moneymaxim.co.uk/car-hire-excess-insurance, or through the site where you book your rental.
What is Excess Reimbursement Insurance?
Excess reimbursement insurance works on a reimbursement basis, where you pay the rental company for any excess charges and then claim these costs back from your insurer. This type of insurance can also cover additional parts of the vehicle that are not typically included in standard policies.
Understanding car hire excess and exploring your insurance options can help you avoid unexpected costs and ensure a hassle-free rental experience.
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