Third of hire car drivers unaware they are liable for excess fees of up to £2,000 – London Business News | London Wallet

A new survey by Opinium, commissioned by iCarhireinsurance.com, a leading provider of car hire excess insurance, reveals that a third (34%) of hire car drivers are unaware they are liable for an excess fee of up to £2,000 if their car is damaged or stolen, even if they are not at fault.

Excess protection cover can protect drivers from this liability. However, the survey found that nearly two-fifths (37%) of drivers don’t know what an excess waiver is.

Additionally, three-quarters (76%) are either unsure or mistakenly believe that excess protection must be purchased from the rental company. According to a cost comparison study by iCarhireinsurance.com, travellers could save over £200 a week by purchasing excess insurance from an independent insurance provider.

For instance, hiring a medium compact car, like a VW Golf, from 27 July to 3 August 2024, in Faro, Portugal, costs on average £257 for excess protection cover from the rental company. In contrast, iCarhireinsurance.com offers a week’s policy covering damage, theft, and tyre and windscreen cover for just £33.15. Annual European policies start from £41.99.

Many drivers are unaware that rental companies have the right to hold the excess amount on the driver’s credit card if excess protection is not purchased from them. Over half (57%) of hire car drivers are unaware of this practice. Furthermore, a third (34%) of drivers purchase excess waivers from the rental company to avoid having the excess amount held on their credit card, a figure that rises to 57% among 18–34-year-olds.

Ben Wooltorton of iCarhireinsurance.com said: Excess protection gives drivers peace of mind that they’re covered if something happens to their hire car. Our policies are often a fraction of the cost of those sold at the rental desk. Drivers should ensure they have a credit card available to allow the rental company to hold the excess during the rental period. If an incident occurs, the excess can be paid using the credit card and then claimed back from us.”