Car Hire Drivers in a Spin About Car Hire Insurance

Car Hire Drivers in a Spin About Car Hire Insurance

(http://haloinsurance.com/)

Many British travellers are confused by car hire

insurance(https://www.icarhireinsurance.com/) which is putting them at

risk of high penalty fees says a leading online insurance company,

iCarhireinsurance.com(https://www.icarhireinsurance.com/), following

the results of a survey it conducted with YouGov.

The survey of 1103 British people who have hired a car, revealed that

a sixth (15%) of respondents believed they had driven a hire car

without fully understanding exactly what insurance they had and what

they were covered for, but in reality the number is significantly

higher than this.

A shocking 93% of people did not realise that if their hire car was

damaged or stolen in Europe, even if it wasn't their fault, then they

would be liable for the first part of a claim i.e., the excess amount

of up to GBP 1500. 94% did not check the small print to find out how

much they would be charged if their keys were lost or stolen, and 89%

did not check it for costs incurred in the event of a short notice

cancellation. With many contracts, the hirer can be charged up to GBP

300 for lost or stolen keys and up to 50% of the contract plus costs

for last minute cancellations.

When travellers reach the car rental pick-up desk (and have got to the

front of the queue), they are often faced with the prospect of an

additional bill of around GBP 18 a day(i) to purchase "excess"

insurance (adding approx GBP 252 to the cost of a two week holiday) as

well as additional insurance for key cover and personal belongings.

The survey revealed that almost a sixth (14% of people) had been

scared into buying extra insurance at the car rental pick-up desk,

with eight out of ten people (83%) not knowing that they could buy

excess

insurance(https://www.icarhireinsurance.com/insurance-information-centre/excess-insurance.html)

from providers other than the car rental company. And indeed the vast

majority, over two thirds (71%) also did not know that this insurance

is significantly more expensive than they could buy elsewhere.

There was also widespread ignorance about what excess insurance did

and did not cover with eight out of ten people (85%) not knowing that

some excess insurance doesn't include damage to windows, tyres, roof

or undercarriage or driving within 150 km of home.

Ernesto Suarez, CEO, iCarhireinsurance.com, "From misunderstanding the

basics of what car insurance covers, to feeling '"scared" into buying

expensive extra insurance at the car rental pick-up desk, people are

clearly baffled by the car hire

insurance(https://www.icarhireinsurance.com/car-hire-insurance-products.html)

offered by rental companies.

"The insurance policies available at car rental desks tend to be

expensive and frequently not worth the paper they are written on, as

they often fail to cover the parts of the car most likely to get

damaged, such as the windows, tyres and roof. We believe drivers

should stop letting the car hire companies take advantage of them when

they are tired, after a journey, and really just want to get their car

keys and go, and instead book more comprehensive and cheaper insurance

online in advance."

The confusion is not just for those driving in Europe. Three quarters

(75%) of people didn't know that you need to have CDW (Collision

Damage

Waiver(https://www.icarhireinsurance.com/insurance-information-centre/cdw-ldw-collision-loss-damage-waiver.html))

and SLI (Supplemental Liability

Insurance(https://www.icarhireinsurance.com/insurance-information-centre/sli-supplemental-liability-insurance.html))

when renting in the USA or you risk being responsible for the full

cost of the vehicle if it's damaged in an accident, or even risk a six

figure claim for compensation if you cause death or injury to a 3rd

party in an accident. Nine in ten people (90%) did not know that they

didn't have to buy the insurance offered by the car hire company and

could shop around for a better deal prior to travelling.

iCarhireinsurance.com protects customers from these insurance risks at

a price significantly lower than that offered by the car rental

companies and also automatically covers damage to the tyres, windows,

roof and undercarriage. iCarhireinsurance.com excess policies start

from only GBP 2.99 a day or annual cover for GBP 39.99.This is a

saving of around GBP 200(ii) for a two week holiday from buying the

excess insurance direct from the hire car company. Key cover is

available for only GBP 4.99 single trip and GBP 9.99 a year and

cancellation cover for only GBP 9.99 a year when bought with an

iCarhireinsurance.com annual excess policy.

Notes to Editors:

-- The Survey

The research was undertaken for iCarhireinsurance.com by YouGov Plc.

Total sample size was 2007 adults, of which 1103 had hired a car.</p>

Fieldwork was undertaken between 1 - 4 April 2011. The survey was

carried out online. The figures have been weighted and are

representative of all GB adults (aged 18+).

(i) From Table 1 below Avis charges EUR19.6 per day for excess

insurance, or GBP 17.57 (currency exchange as of 28/6/2011 - 1 GBP

1.11570 EUR)

(ii) The cheapest Nil Excess Insurance in Table 1 below is Avis, which

is EUR19.6 per day. This multiplied by 14 (for a two week holiday) is

EUR274.40, or GBP 245.92 (currency exchange as of 28/6/2011- 1 GBP

1.11570 EUR). Buying two weeks excess insurance cover from

iCarhireinsurance.com is GBP 2.99 a day, multiplied by 14 GBP 41.86.

This gives a saving of GBP 204.06.

Table 1: Excess Insurance cost for UK resident renting a VW Golf class

car in Barcelona (Barcelona Airport)for a three day rental from

29.04.2011 - 02.05.2011

--------------------------------------------------------------

Excess Nil Excess Rental Rental + Excess % of

Insurance Only Cost Insurance Rental

----------------------------------------------------------------------

Avis EUR 738EUR 58.80 (EUR EUR 119.62EUR 178.42 49%

19.6 daily)

----------------------------------------------------------------------

Budget EUR 707EUR 65.46 (EUR EUR 112.81EUR 178.27 58%

21.82 daily)

----------------------------------------------------------------------

Europcar EUR 773EUR 61.56 (EUR EUR 117.97EUR 179.52 52%

20.52 daily)

----------------------------------------------------------------------

HertzEUR 784EUR 66.52 (EUR EUR 132.97EUR 199.49 50%

22.17 daily)

----------------------------------------------------------------------

SixtEUR 350EUR 59.48 (EUR EUR 134.98EUR 194.46 44%

19.82 daily)

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iCarhireinsurance.com

Founded in 2009, iCarhireinsurance.com is a groundbreaking, new online

insurance service that takes the hassle out of hire car, car club and

van hire insurance. It offers a range of policies that are fully

comprehensive, simple to understand, unbeatable value and accepted at

all car and van rental locations worldwide.

iCarhireinsurance.com is a registered trading name of Halo Insurance

Services Limited. Halo Insurance Services Ltd was founded by Ernesto

Suarez, a leading insurance professional with 13 years experience in

the industry.

Halo Insurance Services Limited is registered in England number

6929208. Authorised and regulated by the Financial Services Authority

Register No. 504629 for the sale and administration of general

insurance products in the United Kingdom and throughout the European

Economic Area (EEA).

Halo Insurance Services Ltd is backed by Bridges Ventures and Magenta

Partners.