Overseas rental car insurance cost warning for the Brits

Sunday, June 16, 2024

Brits are being cautioned over the high costs of insurance when renting cars overseas.

Excess waivers at car hire companies potentially cost up to 12 times more than alternative options.

According to consumer watchdog Which? travellers could face charges of up to £199 for excess waivers at rental desks, despite comparable cover being available online for as little as £16.

The basic insurance included in car rental prices typically comes with an excess, leaving holidaymakers vulnerable to hefty fees for minor damages such as a puncture or windscreen replacement, Which? warns.

To avoid these costs, customers can opt for a Super Collision Damage Waiver (SCDW) from the rental company or seek Excess Reimbursement Insurance (ERI) from brokers and insurers, reports the Manchester Evening News.

Which? scrutinised the SCDW policies offered by six leading car rental firms in Malaga, Spain, this summer and measured them against various ERI policies.

The findings revealed that, on average, a week’s SCDW coverage in Malaga is priced at £177, whereas ERI can be secured for £38 through a broker or £23 via an insurer.

Travel magazine, commented: “All too often hiring a car abroad is an unnecessarily stressful experience, with travellers sometimes pressured at the rental desk into buying overpriced insurance policies that they don’t want or need.”

“What our research shows is that you should never take excess insurance from your car hire firm, no matter how hard the sell.

Buy an ERI either directly from an insurer or via your car hire broker.”

The top rated policies are a win-win. Not only are they significantly cheaper than anything offered by a car hire company.

But they are also more comprehensive, meaning you have peace of mind should anything go wrong.

• 11 million Brits love to opt for staycation as Easter weekend nears

• Brits prefer more trains than cars or planes for long distance journey

• Norway emerges as a brilliant year-round cruise destination

• New Year’s Eve festivities cancelled in the UK, no fireworks

• Brits love to visit Mallorca