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What Is It?
When a vehicle is insured, the policy will cover the costs of any damage inflicted during an incident. However, if you read the small print, there’s almost always a clause written into the contract which states the first part of any claim must be paid by the claimant. The amount can vary from as little as fifty pounds, to literally thousands of pounds, depending on the policy. This sum of money is known as the ‘excess’.
To counter this, car hire excess insurance is offered as an add-on to your standard policy. If purchased, this covers the cost of the excess as well as the full damage to the vehicle. Therefore, if and when you come to make a claim, you shouldn’t find yourself out of pocket.
Why Have It?
For many, the idea of dishing out additional cash upfront for excess insurance isn’t particularly alluring. However, it’s important to adopt a little foresight here. Spending a small amount more in the initial set up costs could save you hundreds or even thousands of pounds further down the line.
By purchasing an adequate car hire excess insurance policy, you’ll also be buying the peace of mind that you won’t need to spend a single penny more than you’d originally planned. On the other hand, without excess insurance, your trip could end up being a lot more expensive than you’d hoped for!
It’s worth noting also, that an excess can be charged regardless of whether or not the claimant is at fault. Whilst some car insurance providers will waive the excess if another driver is deemed to be responsible, they hold no legal obligation to do so. Therefore, despite your best efforts to drive safely and sensibly, in the absence of a car hire excess insurance policy, you may find yourself paying out for the mistakes of others.
Where To Find It?
As with all insurance policies, prices vary dramatically so it’s worth shopping around to find the best rates. You may discover that some policies are slightly cheaper but only reduce the excess rather than wipe it completely. Before finalising a decision, study each policy carefully and pay particular attention to the terms and conditions. When you’re confident you know what you’ll be getting with each, you can weigh up which you think is the best deal for you. If you’re finding all the different options a bit overwhelming, try using a free price comparison website which should help you analyse each policy against one another.
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