The Ultimate Guide To Car Hire Insurance

If you’re hiring a vehicle, you’ll need to know what type of insurance you need, as well as the amount of coverage your policy should offer. Having insurance is mandatory when you’re driving on public roads, but there are also additional insurance policy options which could help to minimise your costs in the event of an accident.

With a handy car hire guide, you can find out everything you need to know about insuring your hire car, including how to benefit from budget-friendly policies and deals.

Is insurance included in the hire price?

Many car hire firms offer some level of insurance in their hire fees, so do check this before you take any additional policies out. Of course, you’ll want to know exactly what the insurance coverage is, so don’t assume that a comprehensive level of insurance coverage is included in the cost of hire. In some instances, insurance policies which are included in the car hire price as fairly basic and may not give you as much coverage as you’d like.

What waivers are available?

Car hire firms often give you the option to take out extra insurance when you hire your vehicle, and this can be a cost-effective way of reducing the policy excess too. At, for example, you can add collision damage and theft waivers to your policy. With a collision damage waiver, for example, you can add cover for any damage caused to the vehicle by a collision with another vehicle. Similarly, a theft waiver will ensure you have coverage in the event that the vehicle is stolen whilst its in your possession.

Can you arrange your own insurance policy?

Some car hire firms will allow you to take out your own insurance when you’re hiring a vehicle, but this is often restricted to long-term vehicle hire and/or commercial clients. If you are permitted to make your own insurance arrangements, ask your car hire firm for their minimum insurance requirements, so you can make sure your own policy exceeds them. Remember – you won’t be allowed to take possession of the vehicle until you can prove it’s insured, so take the relevant documentation with you when you’re collecting the vehicle.

Do you need excess insurance?

When you hire a vehicle, your insurance policy will include an excess amount. If you need to make a claim on the insurance policy, you’ll be required to pay the excess out of your own pocket. Whilst you can sometimes lower the excess by taking out extra policy features, this could make your premiums higher. Conversely, agreeing to a high excess could leave you with a significant bill if you do need to claim on the insurance policy.

With excess insurance, you can pay a relatively small amount to insure your excess liability. If you do need to make a claim on your insurance and are required to pay an excess, your excess liability insurance should cover this (up to the specified value in your chosen policy). Check whether your chosen car hire firm offers excess insurance, or whether it can be purchased from elsewhere.