Car hire excess insurance is compensation to the car rental service provider if something happens to the car. It is the maximum one can pay if the vehicle is stolen, damaged or involved in an accident. However, the customer gets his funds back if the car comes back in good condition.
Zero excess is when the customer isn’t liable for any damage if the hired car is damaged. However, such an offer has pre-conditions to qualify for a waiver. If the car has a collision dame waiver (CDW), the customer enjoys zero excess. However, not every car incident enjoys the collision damage waiver. It must be specific actions or omissions stipulated in the waiver that passes as zero excess.
How Zero Excess Works
Risks involved in a car hire business are high, making it necessary to have a car hire excess compensation to cushion its interest. The amount is part of the contract which the customer has to deposit before taking the hired car. It carters for any repairs and any damages during this period.
Is it worth buying car hire excess insurance?
Car hire businesses, especially the big ones, have a huge running cost. If they do not have an elaborate compensation scheme, car repairs and maintenance costs might run down their operations. The car hire excess provides instant funds to get the car back in shape for the next customer.
However, including it in the contract means hiring professionals to examine the vehicle every time it comes back. If it comes back without a scratch, the customer gets back their money. It, therefore, means that the company has to charge more as the car hire fees to maintain the professionals, making the service expensive.
How to Navigate the Excess Insurance
To successfully run a car rental business, you need insurance. It not only handles all emergencies but also keeps the company afloat.
For a car hire services manager, is car hire excess insurance worthwhile?
Yes. The company must buy car rental excess insurance for all their vehicles as a preventive measure. It reduces service costs significantly and also shares liability with the customer in case of an emergency. However, the car hire service company must find innovative ways to reduce the car hire cost.
The first approach is buying an annual car hire excess insurance and benefit from economies of scale. It significantly reduces operations costs, making the business both viable and cost effective. There are several best annual car hire excess insurance UK has, giving you options to select the most affordable package.
Why the Customer is Important in Car Hire Excess
First, when a customer walks into a car hire company, they go through car hire terms and conditions. Irrespective of the nature of their demand, renting a car has risks attached to it. Getting a car hire excess insurance caps the amount they can spend on repairing the car in case of an accident or emergency.
As the customer, ask yourself the following question, do I need excess protection car hire insurance?
You should get the insurance since it also shares costs with the insurer if anything happens to the car. However, if the car comes back in good condition, the car hire service company will refund the money.