Chat With UsHolidaymakers have a lot of expenses to bear when travelling, such as accommodation, flights, and car rental fees. Getting excess insurance for your rental car may seem to be an unnecessary expense, and you may consider opting out of buying one. What you don’t realize is that car insurance can turn out to be a wise investment and reduce the risk of a future liability. In this article, we will discuss excess car insurance and its benefits in detail.
How does it work?
If a rented car has been stolen or in an accident, you need to pay a certain amount to the car rental company. This amount is generally very high. Having an excess car insurance can help you cover these costs. Dents or small scratches on your rented car could also lead to minor additional charges – all of which are covered if you have taken an insurance policy.
There are two types of excess car insurance – a Collision Damage Waiver (CDW) and a Loss Damage Waiver (LDW). CDW is to cover any damages in an accident, and LDW’s covers stolen cars (having theft protection). Taking an excess car insurance is optional when renting a car. If you decide to opt for an insurance policy, you will be charged based on factors such as the driver’s age and travelling area. Payment is usually done before renting a car or hiring the car.
When you get an excess car insurance, make sure you read the contract thoroughly before signing it. Different policies have different terms, so it is best to pay heed to the details.
How will it help me?
Mishaps on the road are extremely unpredictable. Even if you are an expert driver, you could be the victim of someone else’s bad driving. Or maybe, it could be a tiny error you make while parking, and bump into another car. During similar situations, having an excess insurance can be a lifesaver. You can save a lot of money by depending on an insurance to cover these expensive damage costs. If anything, an insurance can make the cost of the damages a manageable amount.
