Holidaymakers are being warned to avoid being “ripped off” by car rental companies charging up to 12 times more than online excess waiver policies when traveling to Europe.
Research of what? showed that travelers can be charged up to £199 for inferior excess waivers at the car rental counter – while alternative policies are available online for as little as £16.
When travelers rent a car in Europe, they do not need to purchase additional insurance, as basic insurance is included in the rental price. However, this insurance has a ‘deductible’, which means that in the event of damage to the car it may be necessary to pay a contribution to the repair costs, regardless of who is at fault.
Data from Zest Car Rental shows that common problems such as a flat tire can cost as much as €300 to repair, while a replacement windscreen can cost around €750.
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To limit this, there are two options: purchase a Super Collision Damage Waiver (SCDW) policy from the rental company, which removes or reduces the deductible, or purchase Excess Refund Insurance (ERI) from a third party – either directly from a insurer. , or through your car rental agent – through which the driver can reclaim the deductible.
The consumer organization looked at the level of cover offered by SCDWs from six of the major car rental companies operating in Malaga, Spain – Alamo, Avis, Budget, Enterprise, Europcar, Goldcar – and compared this with the level of cover offered by ERI- policies. both directly from insurers and from a number of car rental brokers.
Average: Which one? found for a week’s cover in Malaga this summer, holidaymakers would pay £177 for an SCDW from their car rental company, compared to £38 for an ERI from a broker, and just £23 if they buy directly from an insurer.
Budget’s policy came in at £199 and was the most expensive that Which? looked at – whether it is ERI or SCDW. But despite the price tag, the consumer organization found the coverage offered inferior. Damage to the underside of the car, misfuelling, cover for lost or stolen keys, containment cover and cover for drop-off charges – when you can’t return the car – are all absent, while cover for towing charges and personal belongings are optional extras at an additional charge. The same goes for Avis.
The SCDW policies of Budget and Avis are jointly rated the lowest, with scores of 41%.
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Closely behind is Goldcar, with a policy score of 44%. At £193 it is the second most expensive policy the consumer body analyzed, but it does not cover misfuelling, personal belongings, lost or stolen keys or restraining. Cover for tires, mirrors and locks is optional at an additional cost.
Many of the Best ERI Policies Which One? being looked at are available directly from insurers. These include Cover4rentals.com’s Gold policy and Worldwide Insure’s Deluxe policy, which are 80% the same.
At £16, Cover4rental.com’s top-rated Gold policy is the second cheapest policy. Which? checked, and is 10 times cheaper than most SCDW policies. It has a total claim limit of £10,000 and highlights include £1,000 cover for misfuelling, £1,000 for towing costs, £750 key cover and £500 cover for personal effects.
Worldwide Insure’s Deluxe policy (£24) has a total claim limit of £50,000, the highest of any policy the Consumer Champion checked. It offers misfuelling cover of £500, key cover of £500, towing cover of £500 and personal effects cover of £300.
Rory Boland, editor of Which? Travel said: “All too often, renting a car abroad is an unnecessarily stressful experience, with travelers sometimes pressured at the rental counter to buy overpriced insurance policies they don’t want or need.
“Our research shows that you should never take out excess insurance with your car rental company, no matter how difficult the sale is. Purchase an ERI directly from an insurer or through your car rental agent. The top-rated policies are a win-win: not only are they significantly cheaper than anything a car rental company offers, but they’re also more comprehensive, meaning you can have peace of mind if something goes wrong.”
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