Many people believe that paying for both car rental and car hire insurance already offers sufficient coverage.
The truth may actually surprise or even shock them.
Typical limitations
Car rentals typically come with CDW and third party insurance included in the package price, which gives you a certain amount of protection and coverage.
Third party covers you against the claims of other people that you have injured them or damaged their property with your rental car.
CDW (collision damage waiver) by contrast covers you against the costs of damage to the rental car while it's out on hire to you.
However, your in-the-deal insurance typically:
-excess may be quite expensive and can reach as much as £1600;
-won't insure you for damage done to the tyres, under body or glass of the car;
-may (in some countries) have an unrealistically low cap on third-party liability levels.
The risk is that in case of an accident, you might find yourself having to pay a large sum of money -- money that will often be charged against the credit card you used to pay for car rental fees.
Protection
Car hire insurance can be supplemented to cover these risks.
The rental companies will typically offer you what they may call top-up insurance.
It is often offered to clients when they come to collect the car and if you sign up for it, the rental company may even waive any excess and provide coverage for areas that are often excluded in some policies.
A typically lower cost alternative is to purchase car hire excess insurance from an online provider of insurance. Their cover is not only typically lower cost but it may also offer broader benefits and protection.
In the event of a problem, the rental company may still charge your credit card but you would then simply claim that back from your own policy.
Getting coverage ahead of time
If the only time you'd consider the risks is when you're picking up a rented car, you may find yourself faced with no other option than the one being offered to you by the car rental company -- an option you will be forced to take.
Taking the time to arrange your car hire insurance through an online provider in advance might help you keep a little more of your money in your pocket as opposed to giving it to someone else! Do note that your cover will be subject to policy limitations, exclusions within the policy terms and conditions.
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