The excess is the amount you, as hirer, will be asked to pay if the vehicle is damaged or stolen. If you hire a vehicle you will probably take out the vehicle rental outlet’s Loss or Collision Damage Waiver cover (sometimes referred to as LDW or CDW). This will include an excess which varies depending upon the vehicle hired and location but it is often over £500 and could reach up to £5,000.
How does excess insurance work?
Car excess reimbursement cover is not compulsory but if you choose not to purchase an excess policy in the event of the rental vehicle being damaged or stolen, you will be liable for the amount excluded under the vehicle rental agreement.
The policy covers the policy holder, not the hire car company and is available on an annual basis or on a short term daily basis to cover a specific hiring.
What does the product cover?
The policy offers you cover for the excess as a result of accidental damage (including damage to windscreen or windows, tyres, the undercarriage and the roof), damage by fire, theft or attempted theft, vandalism or loss of use.
In addition, it covers drop off costs of returning the rental vehicle to the original rental outlet up to a maximum of £200, due to accident or illness (excluding one way rentals) and there is also cover for costs incurred for replacing a lost or stolen rental vehicle key, locksmith charges up to £500 for costs incurred to open the rental vehicle and up to £50 in the event of unintentional lock out.
What type of vehicles aren’t covered by the policy?
Excluded are vehicles with a Retail Purchase Price in excess of £50,000 and “Antique” vehicles which are over 20 years old or which have not been manufactured for 10 years or more. This also applies to the rental of motor homes (if you have not purchased the motorhome cover), trailers or caravans, vans, trucks, non-passenger carrying vehicles, vehicles that carry more than nine people including the driver, motorcycles, mopeds, motorbikes, off-road vehicles and recreational vehicles, unless agreed by special acceptance from the Insurers.
How can we help?
Perkins Slade, in association with travelexcess, can offer a range of policies to insure against the cost of the excess.
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