worldwide car insurance, is there a catch?

dennistueart

We are travelling to the USA and Mexico in January and are planning to rent cars in both countries. We have recently discovered that there are companies that sell comprehensive insurance covering LDW etc based in the UK. There rates are on the face of it much cheaper than insuring the car rental in either USA or Mexico. I have rented in Mexico previously from Hertz and the insurance was as much as the rental. Overall, the savings are substantial. Has anyone any experience of buying their holiday car insurance in this way? We are wondering if there is some pitfall or catch that we aren't seeing?

Mxty

dennistueart wrote: »

We are travelling to the USA and Mexico in January and are planning to rent cars in both countries. We have recently discovered that there are companies that sell comprehensive insurance covering LDW etc based in the UK. There rates are on the face of it much cheaper than insuring the car rental in either USA or Mexico. I have rented in Mexico previously from Hertz and the insurance was as much as the rental. Overall, the savings are substantial. Has anyone any experience of buying their holiday car insurance in this way? We are wondering if there is some pitfall or catch that we aren't seeing?

Hello Dennis,

I came across a page a while ago that highlights the issues with the insurance I believe you are talking about http://indigocarhire.co.uk/faq/car-hire-with-zero-excess they basically state that it is worth it but the pitfall is that you have to pay for it and then get reimbursed which some people can't afford to do. They also say its only worth buying if you are hiring for a long(ish) period of time.

There's some useful states there so you can work out if its worth it in your situation.

Hope this helps

zagfles

I've used insurance4carhire loads of times, though never had to claim. They do seem to have a good reputation for paying claims promptly - usually before you have to pay the CC!

Check carefully what insurance is included in the basic car hire price first - often CDW/LDW is included but with a big excess, and third party is usually included but can be limited to a low figure in the US, in which case you really need SLI to top up the third party liability.

StuieUK34

or just book a car for rental in the US with a UK broker, which is full insurance and no excess....
so unless u lose your keys, wreck the alloys or kick out the windowscreen, you are covered...
I have first hand experience of damaging a rental in Florida... and not paying a penny to anyone..
As for mexico, unsure of that one.....

Its only really Europe that I know of that you get screwed on for insurance and BS excess....

NFH

I get insurance for hire cars included with my American Express Platinum Card. This means that I only have to take the minimum legal cover required by law (e.g. third party) which in most jurisdictions has to be provided by a local insurance company. This means that I can decline all optional insurance. The problem is that many car hire companies make you take their comprehensive insurance or they include it in the price, thereby negating the potential cost savings and the Amex benefit.

If there are any insured losses, the car hire company can charge it to the card (which has no credit limit), and American Express's underwriters reimburse the charges to the card.

Mxty

NFH the massive issue with American Express card cover is that you have to pay for the full vehicle damage cost.

This is also a reimbursement method however, say you where to right off a brand spanking new Ford Ka when you hire it. You have to pay out around £10,000 in order to pay for the damages, whereas the excess of the rental only ranges to like £2000 I think, based on company and location of course.

Which is fine if you have the £10,000 in your bank account.... if not then its not the best of cover to have

fkaprotz1

Have used insurance4carhire as well as other companies and have claimed twice already in the past 3 years. No problems on both claims, both paid back pretty quick - within 3-4 weeks.