- Driving abroad can be complicated enough without adding insurance to the mix.
- Purchasing excess coverage from a car rental company can be extremely expensive
- Which? advises drivers to look elsewhere for the best deals
Motorists driving abroad this summer are being urged to avoid insurance excess exemptions sold over the counter by car rental companies, which can cost 12 times more than buying independent cover.
Car rental insurance typically has an excess – the rate the driver pays if there is any damage to the vehicle.
Customers are usually required to pre-authorize the excess amount on a credit card during the rental period, which is charged by the rental company in case the vehicle is damaged.
Car rental excess insurance covers the cost of this excess, which in Europe typically costs from €500 to €2,000 (£441 to £1,764), or more, according to consumer champion Which?.
Drivers beware: Purchasing additional coverage from a car rental company is convenient, but expensive
This insurance is almost always offered by car rental companies when the vehicle is rented, but purchasing coverage this way can be prohibitively expensive.
Which? Such drivers can be charged up to £199 for a policy that is less useful than one that costs just £16.
There are two forms of insurance that cover the car rental excess: Super Collision Damage Waiver (SCDW), sold by car rental companies; and excess reimbursement insurance (ERI), sold by car rental insurers and brokers.
Which? compared the coverage sold by six major car rental companies in Malaga, Spain, and compared it to ERI offers sold elsewhere.
Drivers booking a car for a week were charged an average of £177 for cover purchased from a car rental company, but only £38 from a broker and £23 from an insurer.
Which? He also said SCDW’s policies were inferior and many did not cover common problems such as key theft or using incorrect fuel in a vehicle.
Therefore, drivers should be sure to read the fine print and compare prices, and not be pressured to automatically purchase the car rental excess coverage sold by car rental companies.
Car rental costs are falling
The cost of car rental has dropped more than 40 percent in one year.
School holiday costs have soared over the past two years, with the rental price of a compact family car in favorite summer destinations set to cost an average of £652 for just one week in 2022.
However, prices at the same 12 locations have been reset to £380 per week for this summer, which is just £70 more than 2019, according to data shared by iCarhireinsurance.com.