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Lucy F, Bradford UK
Car Insurance

Car Rental Insurance

Car rental insurance is compulsory, for UK law does not separate ownership of the car from the need to have it insured in your name if you drive it. Many hired car companies offer the option of including insurance in your rental agreement, and many drivers find the convenience worth the extra cost per day. The insurance might cost more than a short-term policy you find on your own. If the convenience of one piece of paper acting as both registration and proof of cover and one payment for both rental and insurance fees, then take advantage of the car rental insurance provided.

The coverage you purchase with the rental fee will probably be comprehensive insurance, for the rental company would want to preserve the appearance of that vehicle, for most hire car companies use new models each year. If you prefer to purchase your own temporary cover, it will have to match that level of cover per the rental agreement. Know that unless you pay an even greater fee per day that you would be responsible for any excess, payable to the rental company, should you be at fault in an accident. If you do opt for a no-excess coverage, you would still have to provide an accident report, so write every detail down as quickly as possible. Include the other driver’s or the property owner’s information as well. Some people opt to use the video recording option in a mobile phone to make that record, for it can also record audio as you film the cars, the property, the location and area.

Excess Payments

An auto insurance excess is the first X pounds paid by you before insurance benefits begin. This is not a down payment, but it might be paid per accident. Depending on the wording of your policy, your excess can be either a pre-determined amount or a percentage of the repair costs. Before buying a policy, see how these different payment configurations influence your insurance quotes. Regardless of which structure you prefer, increasing your voluntary excess on a privately purchase car rental insurance policy may decrease your separate cover costs.

If you opt for the rental company’s sponsored plan, determine whether your excess is due on any accident or if it is reduced or absent if the accident is not your fault. Most companies, though, do enforce some level of excess no matter who the guilty party is. Know those details well before you sign a sponsored car rental insurance agreement. Determine for yourself if this is a fair trade for the combined-fee convenience.

If any of the car rental insurance agreement does not sit well with you, remember you can find temporary cover for that hired car. It will be with comprehensive cover, but most short-term policies do not require you to pay any excess if the other driver is at fault. Compare the qualifications of coverage, the restrictions and excess details and stipulations in the sponsored plan with those you find among the online quotes you receive. If prices are similar, the excess stipulations might be the key points in agreeing with the combined payment or purchasing your own. Be aware, however, that some rental companies require you to accept their insurance on their terms. Also be aware that there are more hired car companies in the city, and many will accept comparable cover that you purchase yourself.

What Cover Do You Have?

You might already have insurance coverage for a hired car in your car insurance policy. If your car breaks down and will take time to repair, your current auto insurance coverage may include a courtesy car in its benefit package. Of course, some policies may limit benefits to accident-related repairs only, but determine before you hire a car and pay for insurance for it whether you are already entitled to a car that is already protected.

If your rental is not through your auto carrier, determine what coverage is actually included in the provided insurance. As mentioned previously, it’s probably comprehensive, but if the coverage is third-party fire and theft, your excess payment should be lower, and so should your insurance payments. Don’t count on that lower coverage, though, unless you rent from a discount rental company that uses only older models. As with buying a car, renting a smaller vehicle will both cost less in rental fees and in insurance costs. If a company does not offer those small, manoeuvrable autos, consider finding a car rental company that does. It will only help your car rental insurance costs – and your fuel economy as well.

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