Many people choose to hire a car when they go abroad, and it’s not difficult to see why. With an entirely new area to explore, it’s not unusual for people to want to go a little bit further than the hotel bar and experience the sights, sounds and culture of this strange new world for themselves. However, while many places might offer you a fairly good deal on car rental, it’s common to see a long and often confusing list of optional ‘extras’ that you might be tempted by, such as CDW insurance. But how do you know which ones to get, and which ones can you safely disregard in favour of keeping a little bit more spending money?
If you’re planning on renting a car, one of the most important things to consider is the excess that comes bundled with it. The excess for rental cars is very much the same as it is for standard UK vehicles – it’s the amount you pay against a claim before the insurances takes over. Unfortunately, this is often extremely high for hire cars, sometimes in the region of a thousand pounds. Few people would feel comfortable (or even be financially able) to pay that much money against an accident, especially if it wasn’t their fault, and as a result many people choose to take out CDW insurance as an extra precaution.
CDW insurance (also known as a collision damage waiver) is a policy designed to remove some of the excess associated with renting a car. For a premium, it’s possible to shrink the excess in order to ensure that you’re not liable for nearly as much money should you have an accident. Despite this, most CDW insurance policies won’t protect you entirely from having an excess (although many providers now offer a ‘Super CDW’ policy, aimed at removing your excess completely). Whichever you choose, it’s important to remember that the more you pay, the less you’re liable for in case of an accident, but also that these costs can rapidly mount up, especially if you’re planning on renting for several weeks.
One alternative that’s rapidly increasing in popularity is to purchase insurance before you even go on holiday. There are literally dozens of providers that will allow you to make sure you have CDW insurance, either via phone or online, and this can often work out much cheaper than buying it at the counter of the hire shop at your destination. As a general rule, it comes either as a day-by-day policy (based on the number of days you’re hiring the car for) or as an annual cover. While this last one might end up being more expensive if you’re only renting for a short period of time, it’s especially useful for those who expect to rent cars abroad more than once a year, or those who plan on keeping their rental car for longer than two weeks or so. Either way, booking online can save you both money and time, and allow you to maintain your peace of mind while you drive.
Tags: Guide to CDW Insurance