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Insurance Business | 13 Jan 2015, 08:49 AM Agree 0
A leading consumer watchdog has warned that customers face paying up to 491% more when buying car insurance from a hire car company compared with other options on the market.
  • Sarah | 13 Jan 2015, 10:13 AM Agree 0
    Most travel insurance policies have conditions around hire car coverage, so consumers should check their travel policy wordings carefully particularly around the limit they will pay for the excess and if there is a requirement to initially buy cover from the rental company.
  • Johnny | 14 Jan 2015, 09:30 AM Agree 0
    Further to Sarah's comment, I'm concerned that either Mr Godfrey or the author of this article has got the wrong end of the stick with regard to the cover in travel policies.

    Travel policies can include an excess write-down but still require you to take the comprehensive cover from the rental car provider in the first instance.

    If for example, the hire car insurance had an excess of $5,000, the travel insurance may buy it down to $1,000. But for any loss above $5,000 the comprehensive insurance would be required to respond.

    I believe that Mr Godfrey was referring only to this excess buy down, in which case he could be correct that it is available elsewhere.

    Read in isolation the quotes reference the issue being one of buy down but the way in which the article is phrased makes it appear that Mr Godfrey is in fact referring to the comprehensive cover being insurable under a travel policy which is unlikely to be the case.
  • Knows better | 15 Jan 2015, 10:41 AM Agree 0
    Ignorance again from Choice!
  • Desmond Sherlock | 21 Jan 2015, 05:40 PM Agree 0
    Johnny, I believe that this article is specifically referring to Australia.
    In this case all rental cars in Australia come with comprehensive cover from the car rental companies, by law. It is the trailing excess that can be as high as 6k that the article is referring to. I sell the car rental excess through Tripcover (which is mentioned in the Choice article, covering up to 4k or 6k for a lot less than the car rental companies.
  • The West Australian Perspective | 23 Jan 2015, 11:09 AM Agree 0
    Johnny has hit the nail on the head and this is speaking from experience. Whilst having the Travel Excess cover is great, when you don't buy down the excess you then become legally obligated to pay the hire company this amount in full and up front until the repairs are assessed and quantum established.
    This happened to me and I had my credit card charged $3,000 for what ended up being $252.00 of damage. Whilst the hire company reimbursed this back to me, this only happened quickly because I kept pushing them all the way to get the repairs quantified.
    My advice, if you hire a car infrequently for short periods of say up to three days, it may be worth paying the excess reduction to avoid spending large amounts of time dealing with people on the other side of the country to get your money back.
    On an aside, my u-bute AMEX Platinum credit card travel insurance does NOT include excess cover!!
  • Desmond Sherlock | 02 Dec 2015, 11:23 PM Agree 0
    I agree with your Perspective in The West
    but that is like any other insurance, ie. you pay for repairs and then claim it back.
    Tripcover, managed by Allianz says that it will reimburse the customer within 10 working days of receiving the relevant paperwork.

    But certainly if you are considering having an accident better to take out the car rental companies' much more expensive cover.
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