Anyone traveling abroad this summer has been urged to avoid insurance excess waivers offered by car rental companies, which can cost up to 12 times more than alternatives.
Consumer group Which one? said it found travelers could be charged up to £199 at car rental counters for policies that are inferior to options available for just £16.
Rory Boland, editor of Which? Travel, said: “Too often, renting a car abroad is an unnecessarily stressful experience, as travelers are sometimes pressured at the rental counter into purchasing expensive insurance policies that they don’t want or need.
“What our research shows is that you should never take out excessive insurance with the car rental company, no matter how difficult the sale may be.
“Purchase an ERI directly from an insurer or through your car rental agent.
“The top-rated policies are beneficial for everyone. Not only are they significantly cheaper than any car rental company offer, but they are also more comprehensive, meaning you have peace of mind should something go wrong.”
Basic car hire insurance included in rental prices is often subject to an excess, meaning holidaymakers could be charged the equivalent of hundreds of pounds for things such as repairing a puncture or replacing a windscreen, according to Which ?.
To avoid being responsible for this, people can purchase a Super Collision Damage Waiver (SCDW) from their car rental company or Excess Reimbursement Insurance (ERI) from car rental insurers and brokers.
Which? analyzed the SCDW coverage provided by six major car rental companies in Malaga, Spain, this summer, and compared it to several ERI policies.
On average, for weekly cover in Malaga tourists are charged £177 for SCDW, while ERI costs £38 from a broker and £23 from an insurer, according to the research.
Which? He also found that SCDWs are “inferior” and do not cover problems such as no fuel or stolen keys.
