There are many people who hire cars when they travel abroad. Those who take a holiday in the USA may hire a rental car to get about and take in the sights. When hiring a rental car abroad the cost of the rental typically comes with insurance attached, plus an excess which you will be liable to pay in the event of a claim.

It is essential that you understand car excess insurance abroad.

Excess in countries other than the UK may differ substantially. When you take out a rental car insurance it typically covers situations such as damage to the vehicle in the event of an accident. However, check what the policy actually covers as not all parts of the car are protected. Another thing you have to check is the amount of excess that you have to pay towards a claim, if you have to make one.

The amount of excess may sometimes differ substantially abroad to what it does in the UK. This means you may have thousands of dollars deducted from your credit card balance. To protect this you may take out car excess insurance abroad which works the same as in the UK. This policy is there to claim back the excess, or some of it, if you have to claim due to damaging the car.

This type of car hire excess insurance can be bought online from an online UK provider and may give you peace of mind that you won’t face a large excess in the event of a claim on your hire car.

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.

In most cases it can be used whether you are in the UK or abroad, though do check for any restrictions (such as you having to be x amount of miles away from your home when hiring a vehicle in the UK).

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 may 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, but policy features and benefits will vary depending on the provider, so always check the small print.

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 may pay to sort out that extra independent protection before you go, potentially taking a significant sting out of your trip.