Holidaymakers are being warned not to be “rip-off” by car hire companies who charge up to 12 times more than online insurance policies for excess premium waivers when traveling to Europe.
Research from which? showed passengers could be charged up to £199 for a shoddy excess waiver at a car hire counter – when alternative policies are available online for as little as £16.
When a traveler rents a car in Europe, he does not need to buy any additional insurance because the basic insurance is included in the rental price. However, this insurance is subject to an ‘excess’, so if the car is damaged you may have to pay a contribution towards the cost of repairs regardless of who is at fault.
Figures from Zest Car Rental showed that repairs to common problems such as a flat tire can cost up to €300, while replacing a windscreen can cost around €750.
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To mitigate this, there are two options – buy a Super Collision Damage Waiver (SCDW) policy from the rental company, which removes or reduces the excess, or buy Third Party Excess Reimbursement Insurance (ERI) – either directly from the insurer. , or through your car rental agent – allowing the driver to claim the excess back.
The consumer body looked at the standard of cover provided by SCDW from six major car hire companies operating in Malaga, Spain – Alamo, Avis, Budget, Enterprise, Europcar, Goldcar – and compared it with the level of cover offered by ERI policies. both directly from insurers and from a number of car rental intermediaries.
On average, which one? found for a week’s cover in Malaga this summer holidaymakers would pay £177 for SCDW from their car hire company, compared to £38 for ERI from a broker and just £23 if they bought direct from an insurer.
At £199, the budget policy was the most expensive of all? looked at – either ERI or SCDW. However, despite the price tag, the consumer body found the cover offered to be inferior. Underbody damage, wrong fuel, lost or stolen keys cover, cut-off cover and towing cover – when you can’t return the car – are all missing, while towing costs and personal belongings cover are optional extras at an extra cost. The same applies to Avis.
Avis’ Budget and SCDW policies are joint lowest rated with a score of 41%.
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Close behind is Goldcar with a political score of 44%. At £193, it is the second most expensive policy analyzed by the consumer body, but does not cover fuel misfuelling, personal belongings, lost or stolen keys or restrictions. Tire covers, mirrors and locks are optional at extra cost.
Many of ERI’s best principles Which? are available directly from insurance companies. These include the Cover4rentals.com Gold policy and the Deluxe Worldwide Insure policy which splits 80%.
At £16, Cover4rental.com’s premium gold policy is the second cheapest Which? reviewed and is 10 times cheaper than most SCDW policies. It has a total damage limit of £10,000 and key benefits include £1,000 wrong fuel cover, £1,000 towing costs, £750 key cover and £500 personal effects cover.
Deluxe Worldwide Insure (£24) has a total claims limit of £50,000, the highest of any policy reviewed by Consumer Champion. It offers £500 wrong fuel cover, £500 key cover, £500 towing costs and £300 personal effects cover.
Rory Boland, editor of Which? Travel said: “Too often, renting a car abroad is an unnecessarily stressful experience, with travelers sometimes pressured by the rental company to buy overpriced insurance they don’t want or need.
“Our research shows that you should never take out excess insurance from your car hire company, no matter how difficult the sale. Purchase ERI either directly from the insurer or through your car rental agent. The top-rated policies are a win-win – not only are they significantly cheaper than anything offered by a car hire company, but they’re also more comprehensive, meaning you have peace of mind should something go wrong.”
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