Excess Waiver Insurance: The Truth 13 July 2011

Car rental customers should be aware that the excess-waiver insurance offered by third-party providers is very different from the no-risk cover offered by their car hire company.

The warning, issued by the British Vehicle Rental and Leasing Association (BVRLA), comes in response to the high-profile marketing campaigns launched by a number of car rental insurance brokers, who claim to provide a cheaper alternative to the excess waivers offered by hire companies.

The traditional excess waiver offered by car rental companies enables customers to reduce their liability to a set amount or eliminate it entirely. Unlike an insurance product, it offers a no-quibble, hassle-free guarantee that the customer will not have to pay any extra costs in the event of an accident, theft or act of vandalism.*

Customers taking out a third-party policy are buying insurance. In the event of an incident, they will have to pay the excess fee charged by their rental company and then try and claim it back from their insurer.

“Claiming on a third-party excess waiver insurance policy takes time and a lot of paperwork, and even then people should be aware that their claim may not be successful” said BVRLA chief executive, John Lewis.

“It can leave people short-changed due to exchange rate differences or even simple deficiencies in paper work.

“These third-party policies also have extensive terms and conditions with some surprising clauses that could see people not having the cover they expected.”

Clauses and exclusions

The BVRLA examined the terms and conditions of a number of third-party car rental insurance companies and found some or all of the following exclusions or clauses in their terms and conditions:

The BVRLA is also rejects claims that the car hire industry is ‘pressure selling’ its excess waivers by offering them at the rental desk.

“Customers need to recognise that hiring a vehicle is not like booking a hotel room or buying an airplane ticket – they are taking responsibility for an asset worth many thousands of pounds,” said Lewis.

“It would be irresponsible not to double-check before a rental begins that the customer is comfortable with the level of risk cover they have chosen.”

Notes: *Except for damage caused by gross negligence or a breach of the rental agreement.

TheBVRLA is the UK trade body for companies engaged in the rental and leasing of cars and commercial vehicles. Its members provide short-term rental, contract hire and fleet management services to corporate users and consumers. They operate a combined fleet of around 2.5 million cars, vans and trucks, buying nearly half of all new vehicles sold in the UK.

Through its members and their customers, the BVRLA represents the interests of more than two million business car drivers and the millions of people who use a rental vehicle each year. As well as lobbying the government on key issues affecting the sector, the BVRLAregulates its members through a mandatory code of conduct.

Source: BVRLA

If you are in the Self Drive Car Hire business (car hire - van hire - motor home hire -classic vehicle hire) and are looking for insurance for your hire vehicle fleet - find out more about INSURECARHIRE.co.uk HERE - Insurecarhire is a trading name of Sky Insurance Services Group Ltd who are members of the

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See also:

Beware bogus car hire deals - December 2011

Rental cars are cleaner and safer than private ones, research finds - December 2011

New safety recall system for 2012 BVRLA - September 2011

Electric vehicles are too expensive BVRLA - September 2011

BVRLA Guide to renting a car - July 2011

The Truth about Excess Waiver Insurance according to BVRLA -July 2011

BVRLA and the Equality Act red tape - June 2011

A fresh approach to funding - BVRA -May 2011

Car hire insurance featured on BBC Radio 4 You and Yours - July 2011

Uninsured driving -BVRLA Dealing with continuous insurance - April 2011

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