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Clarity demanded over rental car insurance

Clarity demanded over rental car insurance

Clarity demanded over rental car insurance Renting a car can be an arduous process filled with hidden fees, especially when booking one through a website. But now the regulator has stepped in and demanded more clarity over a series of issues, several of which relate to rental car insurance.

The Competition and Markets Authority (CMA) has said car hire websites need to offer customers a ‘transparent drive-away price including every mandatory charge and any options they choose’ when they receive a quote. The order is to get around companies offering extremely cheap prices before stacking on a number of extra fees.

The CMA wants car rental companies to state clearly and in plain language excesses and the cost of reducing them, letting drivers choose their level of insurance with more clarity. Car rental companies should also make clear what isn’t covered by a collision damage waiver, such as damage to tyres.

Another order is for more clarity on pre-authorisation or deposits for excesses. The industry has been given until January 2017 to make the changes.

“This will make it easier to shop around, compare different providers and get the best deal,” said James Macbeth, CMA Project Director. “We welcome the willingness to improve practices we have already seen from the industry and expect that to continue.”

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