Hiring a vehicle when you go abroad can be a cost effective way of getting around while on holiday. The costs on the continent are often pretty reasonable, with France and Spain being popular destinations for holiday makers looking to rent a car. But besides the initial costs there is always the hidden problem of an excess if you happen to have an accident. Thankfully there is the option of extra rental car insurance which protects the excess which can essentially take away the risk of any additional unwanted cost.

A rental car insurance policy covering the excess operates on a kind of payback basis, whereby the rental car hire company charges the excess on your credit card in the event of an accident. To get this back you can then simply claim on your car hire excess insurance policy.

It can be used whether you are in the UK or aboard.

The deal is normally taken out before you travel and can provide added peace of mind on top of any insurance policy agreed with the rental firm. While many people encounter a trouble-free holiday, because someone is driving abroad they may find negotiating the roads trickier. Likewise, as tourists they may potentially be a target for thieves who would break into a vehicle.

This kind of deal has become popular because there is pretty much always an excess on the collision damage waiver and theft aspect of the rental insurance. Excesses can be anything from around £400 all the way up to £1000 or even more. In the event of theft or damage to the vehicle, you would then have to pay this initial cost.

The extra car insurance with excess protection can save this potentially significant cost and reduce stress on your holiday. Normally the only requirement is that somebody is a full-time resident of the UK and is aged at least 21.

In many cases deals can be taken out in a wide range of countries, right across Europe and to the Americas and beyond. Many insurance companies will not provide protection for a limited number of locations, typically states with a significant level of extra risk, such as Afghanistan or Iraq.

While many people simply stick with the basic rental car insurance policy without really thinking about whether or not they might have to pay the excess, it can pay to sort out that extra independent protection before you go, potentially taking a significant sting out of your trip.