Halo Insurance

Halo Insurance

July 03, 2012 05:27 ET

Excess Insurance From Car Hire Companies "A Rip Off" Say Consumers

LONDON, UNITED KINGDOM--(Marketwire - July 3, 2012) - Excess insurance from car hire companies is a rip off say over one in five (22%) consumers who have hired a car in the UK or abroad.

New research conducted by YouGov, on behalf of iCarhireinsurance.com, a leading provider of stand-alone car hire excess insurance, has revealed the extent of dissatisfaction among travellers with many saying excess insurance is expensive, a hidden cost and is sprung on them at the car rental desk.

If excess insurance is not purchased by a customer they could be liable for up to £1500 if the car gets damaged or stolen, even if it's not their fault. Excess insurance can add over 40% again* to a traveller's car hire cost, so it is not surprising that almost a fifth of respondents (17%) felt it was a hidden cost "sprung" on them when they were picking up their hire car.

The YouGov survey also found that:

  • 22% would have bought if from another provider if they had known before travelling that they could save over 70%;
  • 19% did not know that they could shop around for excess insurance believing they had to buy it from the rental company;
  • 14% were shocked at how expensive it was at the rental desk;
  • And over one in ten people (11%) had not budgeted for this cost

Policies from iCarhireinsurance.com can be bought online for only £2.99 a day or £39.99 for an annual policy. They also include cover for vulnerable parts of the vehicle, which are frequently excluded by the rental companies' policies.

Ernesto Suarez, founder and chief executive of iCarhireinsurance.com. "We want travellers to know that they can buy an excess policy from a third party provider which not only costs a lot less, but is often more comprehensive than those offered by the car rental companies."

YouGov Survey: All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,058 adults, which 994 had hired a car in the UK or abroad. Fieldwork was undertaken between 18th and 20th April 2012. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+)

* Table available on the iCarhireinsurance.com blog.

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