Car hire excess insurance in news again

The "ASK GILL" column in the Daily Telegraph on the 15th January 2010 had a headline "Ask Gill: Should I lock my cases or not? Gill Charlton looks at the pros and cons of securing your luggage in the US; how to keep car hire costs down; and where to find winter sun."


Car hire tips
We are travelling to Melbourne in April and have arranged car hire through Avis for the 21-day trip. Are there any pitfalls we should be aware of when signing the documentation?
Gill Collins, Reigate


Gill Charlton replies
I see that there's a A$2,650 (£1,514) damage and theft excess on this rental. The rental location will try to sell you top-up insurance to reduce this excess to the minimum of £220. Buying this top-up insurance through Avis will cost about £300 for 21 days. You can save money by buying an annual excess-reduction policy through Insurance4carhire ; for £65. This covers bumps, scratches and accidental damage, including any to wheels and windscreens, of up to £2,000.

Naturally, rental agents working on commission don't like these stand-alone policies. Some will try to hoodwink you into taking their own top-up insurance, either by saying that the annual cover isn't valid or by placing a cross in the "accept" box for excess reduction insurance and hoping the customer will be too tired to spot this when initialling all the "accept/decline" items.

Rental companies are becoming much stricter about charging for minor damage.

Always check the car yourself to make sure paintwork scratches and bumps, upholstery stains and any other obvious damage is listed on the condition report. If you spot something that isn't listed, however small, ask for it to be added, otherwise you may be charged for it. If you can, get the car signed back in and ask for a final invoice printout before catching your flight.

This was the second time this weekend that the insurance4carhire people were featured in a major UK National Newspaper. The other was in Paul Golsling's column in The Independent SEE the blog "I've become bothered by the increase in costs associated with hiring cars"

Don't forget the apart from insurance4carhire.com there is also Questor as a major provider in this market.