Tuesday, 13 June 2017

Confused by Insurance Excess?


Yes? Then read on…
What exactly is Insurance Excess? When you book your car rental with DriveAway Holidays, the rate includes Collision Damage Waiver (CDW) insurance, Third Party Liability and Theft Protection (TP). In the event that the rental vehicle is accidentally damaged, (whether the driver is at fault or not) or stolen, the Insurance Excess is the maximum amount the client (renter) is responsible for. Similar to the car insurance on your own car.

How much is it? The Insurance Excess will vary depending on the vehicle, supplier and the country. In France, for e.g. excess ranges from EUR500-1,300. In Australia: From $385 – 3,300, UK GBP550-800 and in Italy excess ranges from EUR800 – 1,500. So, for instance, if you hired a car in France and the car was damaged or stolen, you could be liable to pay up to EUR1,300. Ouch!
Excess Reduction There is good news, however. Firstly, the excess amount may be covered by your Travel Insurance so check your policy before you collect your car.
Secondly, car rental companies offer Excess Reduction, an optional charge that will reduce or waive the insurance excess should the rental car be accidentally damaged or stolen. As with the Insurance Excess, Excess Reduction charges vary depending on the vehicle, supplier and country. In France and Italy, it ranges from EUR8-30 per day; in the UK: GBP8-15 per day and in Australia, from $11 to $27 per day.
DriveAway Excess Refund Cover (DERC)
Another option for DriveAway customers is our very own excess reduction option called ‘DriveAway Excess Refund Cover’ or ‘DERC’. It costs $5 per day and covers you for damage and theft excess costs incurred locally up to AUD4,000. So, if you damage your rental car and are charged the excess amount by the supplier, you can claim up to AUD4,000 when you return to Australia through DriveAway Holidays.
Why it’s Good
DERC is prepaid in Australian dollars before departure so there is no worry of currency fluctuations.
DERC is capped at 40 days so the absolute maximum you’ll have to pay is AUD200.
You can travel safe in the knowledge that if the worst does happen and the rental car gets damaged, DriveAway will refund the supplier’s excess charges up to AUD4,000.
Assuming all the paper work is in order, claims are closed within 14 days.
You will be working with our staff here in Australia so there will be no language barriers, time differences or lengthy phone calls with someone on the other side of the world.
Best of all, DriveAway Excess Refund Cover is economical! You can save you to $256 by purchasing DERC for 7 days compared to the average cost of buying suppliers' excess reduction options. (Visit our blog for a comparison table at http://driveaway2008.blogspot.com/)

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