Rental Car companies have long made a habit of making more from selling customer insurance than renting their cars.
The standard excess on a rental car varies between companies however it can range from $1,000 to $5,000. They will all be very keen to offer you the option of reducing your excess through an excess insurance reduction premium.
The premiums charged by the rental car companies are generally exorbitant. One insurance company charges $25 per day to reduce their excess from $3,500 to $500. When you look at the annual cost it is a whopping $9,125 per year to insure a $3,000 liability.
The problem for the consumer is that you are usually hit with the cost of this excess reduction at the time you’re renting the car. Faced with the decision to run the gauntlet and potentially be up for $3,500 most people swallow the bitter pill and choose to stump up the $25 per day for peace of mind.
At NoWorries Insurance we want to let you in on a little fact that will save you loads of money if you regularly hire rental cars. Most travel insurance policies will provide you with a rental excess benefit of up to $3,000. That means any excess you are required to pay under rental agreement will be covered by a travel insurance policy.
Even better, with a No Worries Travel Cover Annual Multi-Trip policy you’re covered all year round for Rental Vehicle Insurance Excess Reimbursement up to $3,000 per trip. Annual Multi-Trip Travel policies are great value and start at only $230 per year and provide you with an unlimited number of trips per year subject to a maximum of 60 days per trip.