Insurance Excess: What Happens If You Can’t Afford To Pay?
Hire car insurance excess is the amount of money that you agree to pay from your own pocket if your hire car is stolen or written off. The amount you are obligated to pay is written into your car hire agreement.
Protecting your financial interests with car hire excess insurance makes sense. It’s well reported that car hire firms have a number of conditions that cost consumers hundreds if not thousands of pounds.
It's important to thoroughly understand the terms and conditions of your rental car agreement and insurance policy. If you anticipate difficulties in paying the excess, it's best to communicate with the rental car company as early as possible to explore available options and avoid any potential complications.
Who Pays Insurance Excess?
Hire car insurance excess typically falls on the policyholder or the person who has made a claim on an insurance policy. When an insurance claim is filed for damages or losses covered by policy excess insurance, you are expected to pay the excess amount before the insurance coverage is triggered.
If you are hiring a car on a long-term contract, this can leave you without a vehicle until you pay the excess. However, you can avoid being left without a vehicle or out of pocket by purchasing an excess insurance policy.
With Bettersafe’s excess insurance policy, we cover the cost of repair or replacement immediately to ensure the interim period is stress-free.
What is Voluntary Excess on Car Insurance?
The policy excess insurance that you are obligated to pay is compulsory. There is no way of escaping it unless you take out a car hire excess insurance policy.
In your excess insurance policy, you also have the option to select a voluntary excess amount which is higher than the compulsory excess. This gives you more control over the insurance premium and the amount you are potentially able to reclaim.
Selecting a higher voluntary excess will result in a lower premium while choosing a lower voluntary excess will lead to a higher premium. This is because a higher voluntary excess indicates that the policyholder is willing to bear a greater portion of the risk, which reduces the insurer's liability.
What are the Options to Meet the Policy Excess Insurance?
As we’ve already mentioned, taking our car hire excess insurance policy is the best method to cover the excess amount if your hire car is damaged, written off or stolen.
If you can’t afford to pay the policy excess insurance you may be able to arrange an installment plan with the car hire company. This can allow you to pay off the excess in smaller, more manageable installments over a specific period of time.
Alternatively, you can seek financial assistance from a money lender such as a personal loan, borrowing from family or friends, or exploring local community support services. However, you could end up paying more in interest rates which will have a negative impact on your financial situation.
Car Hire Excess Insurance
It should be noted that if you are unable to pay the hire car insurance excess, the rental car company may deny your claim for coverage altogether. This means you would be responsible for the full cost of repairs or replacement of the rental vehicle.
To avoid the risk of financial loss on an excess insurance policy, contact a member of our friendly team today and ask us about our car hire excess insurance.