Car Hire Cover and What You Need to Consider
When you are renting a car and thinking about insurance, you may find that the terms used to describe car hire cover can be confusing.
You will usually need two main types of insurance when you drive a hire car.
The first known as 'third party' will cover you for claims for damage arising from injury to a third party or damage to their property or car.
By law, cars rented in the UK for use in the UK must have unlimited third party liability which means that there is no upper limit on the amount that will be paid out in the event of a valid claim.
If the car is being rented for use outside of the UK then it may come with limited or in some countries like the USA, no third party cover at all.
So in these cases it may be advisable to buy some additional liability cover or Supplemental Liability Insurance to increase the payout limits so they correspond to the potential levels of damages awarded by courts.
The other main type of car hire cover is known as collision damage waiver and it covers damage to the rental car itself.
It can also be known as loss damage waiver.
Collision damage waiver generally comes with excess.
Simply put, the cost of any damage to the car, up to the value of the excess, is not covered by the policy.
Any such damage would need to be paid for by the renter of the vehicle.
It is possible however to buy an excess insurance policy also known as Super CDW to cover any potential excess charges.
Since excesses can be as much as 1500 pounds this may be a sensible approach.
When you hire a car there are a couple of ways you can arrange for your car hire cover insurance or additional 'top-up' insurance.
Often, the most expensive is to take your insurance cover from the car rental company.
Getting cheap car hire insurance Some car hire companies quote separate daily rates for the car and the insurance.
Others may quote you a combined rate for the rental of the car and the insurance.
Whether it's bought separately or included in the deal, the basic car hire cover offered by the rental company will only provide a basic level of cover and in most cases it may be in the best interest of the renter to buy additional insurance.
In all likelihood the rental company themselves will offer to sell you additional insurance.
An alternative to buying car hire cover from the rental company is to use an independent insurance provider specialising in car hire cover and it is worth remembering that you are under no obligation to buy your insurance cover from the car rental company.
You'll find that the premiums are significantly cheaper than those on offer from the car rental companies.
Even if your car rental agreement has insurance included you can still buy top up or excess insurance from an independent supplier.
These suppliers can offer insurance on a daily rate or as an annual policy.
A useful feature of an annual policy is that it is not tied to any particular rental; you can use it throughout the 12-month period.
Provided you do not want to rent a vintage, sports or very high value car, you may find it beneficial to investigate car hire cover from the independent specialists.
You may be surprised at how much you could save.
You will usually need two main types of insurance when you drive a hire car.
The first known as 'third party' will cover you for claims for damage arising from injury to a third party or damage to their property or car.
By law, cars rented in the UK for use in the UK must have unlimited third party liability which means that there is no upper limit on the amount that will be paid out in the event of a valid claim.
If the car is being rented for use outside of the UK then it may come with limited or in some countries like the USA, no third party cover at all.
So in these cases it may be advisable to buy some additional liability cover or Supplemental Liability Insurance to increase the payout limits so they correspond to the potential levels of damages awarded by courts.
The other main type of car hire cover is known as collision damage waiver and it covers damage to the rental car itself.
It can also be known as loss damage waiver.
Collision damage waiver generally comes with excess.
Simply put, the cost of any damage to the car, up to the value of the excess, is not covered by the policy.
Any such damage would need to be paid for by the renter of the vehicle.
It is possible however to buy an excess insurance policy also known as Super CDW to cover any potential excess charges.
Since excesses can be as much as 1500 pounds this may be a sensible approach.
When you hire a car there are a couple of ways you can arrange for your car hire cover insurance or additional 'top-up' insurance.
Often, the most expensive is to take your insurance cover from the car rental company.
Getting cheap car hire insurance Some car hire companies quote separate daily rates for the car and the insurance.
Others may quote you a combined rate for the rental of the car and the insurance.
Whether it's bought separately or included in the deal, the basic car hire cover offered by the rental company will only provide a basic level of cover and in most cases it may be in the best interest of the renter to buy additional insurance.
In all likelihood the rental company themselves will offer to sell you additional insurance.
An alternative to buying car hire cover from the rental company is to use an independent insurance provider specialising in car hire cover and it is worth remembering that you are under no obligation to buy your insurance cover from the car rental company.
You'll find that the premiums are significantly cheaper than those on offer from the car rental companies.
Even if your car rental agreement has insurance included you can still buy top up or excess insurance from an independent supplier.
These suppliers can offer insurance on a daily rate or as an annual policy.
A useful feature of an annual policy is that it is not tied to any particular rental; you can use it throughout the 12-month period.
Provided you do not want to rent a vintage, sports or very high value car, you may find it beneficial to investigate car hire cover from the independent specialists.
You may be surprised at how much you could save.
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