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Tuesday, 23 July 2013 13:58

Car Rental Companies Charge Five Times More for Excess Insurance Than Independent Online Insurers

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  • £434M SPENT LAST YEAR ON EXCESS POLICIES BY UK HIRE CAR DRIVERS*
  • £345M COULD HAVE BEEN SAVED ON INSURANCE IF BOUGHT IN ADVANCE
In 2012 an estimated £434 million was spent on rental desk excess cover by UK drivers of rental vehicles at home and abroad, but new YouGov research for iCarhireinsurance.com, the leading provider of standalone car hire excess insurance, has found that drivers could have saved £345 million in total if they had bought it online from an independent provider before picking up the car.
 
Rental desks charge on average almost five times more than online providers for excess insurance, but the worst offenders can charge more than eight times, a truly eye-watering amount. e.g., Excess cover from Avis for a week in Corfu in June costs £204.64 (£25.58 a day) for a standard family car, that’s £180 more than buying a stand-alone policy through independent UK websites such as iCarhireinsurance.com before pick-up.
 
The YouGov research found that 33% of the UK adult population hired a vehicle in 2012, On average these people hired vehicles for 6.25 days in 2012 at an average daily cost of £14.62 per day** and almost a third of these (29%) have purchased excess insurance.  It is therefore estimated that, assuming everyone bought their excess insurance from the hire desk, £434m was spent by UK travellers in 2012 to protect themselves against high excess charges of up to £2,000 a time for accidental damage and theft.
 
An iCarhireinsurance.com daily excess policy costs £2.99 a day, so drivers paid £141 million (or £11.63 per rental day) more than they had to.  Customers taking a two week rental or planning additional trips later in the year could have been even better off by purchasing an annual policy at only £39.99.
 
iCarhireinsurance.com’s products are also more comprehensive than those sold at car rental desks, with drivers also benefiting from cover that is excluded from most other policies.  Drivers will be insured if their hire car is damaged or stolen, but also covered for damage to the roof, tyres, windows and undercarriage. 
 
Ernesto Suarez, founder and CEO of iCarhireinsurance.com said, “The amount of money that can be saved just by sorting out your excess in advance is incredible.  Not only are our policies a fifth of the average price of those offered by the rental companies, they also cover the most vulnerable parts of the vehicle, which are usually excluded from the rental companies’ policies.”
 

*£434 million calculation carried out by iCarhireinsurance - UK population is 49,122,174 (aged over 18). 47% of UK adult population has hired a vehicle, 71% of these hired a vehicle in 2012 for 6.25 days on average and 29% on average take out excess cover – this means a total of 29,710,626 days of car hire insurance was bought by UK consumers in 2012. Excess insurance costs on average £14.62 a day** = £434million spent on excess insurance by UK hire vehicle drivers in 2012.
 
£345million calculation carried out by iCarhireinsurance – Customers could have saved £11.63 per day for the 29,710,626 days of rental insurance bought in 2012 giving a total potential saving of £345 million. 
 
**Average daily excess cover £14.62 calculated using the average cost of hiring a standard family car in Faro, Malaga, Milan and Corfu from four car hire companies, Hertz, Sixt, Avis and Budget, from 10 to 17 June 2013.
 
iCarhireinsurance.com Price Table - Correct as of 23.07.2013
  Excess Europe Excess Worldwide USA & Canada Worldwide Plus
Daily £2.99 £3.99 £5.99 N/A
Annual £39.99 £59.99 £79.99 £89.99

 

Last modified on Saturday, 27 June 2015 15:38
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