What is Zero Excess?

Understanding Zero Excess Car Hire: A Guide

 

When it comes to hiring a car, especially when you are in a different city, or even a different country, there is lots to bear in mind. This can range from whether you should pay a deposit, to the type of car you need to hire, and even which provider to choose from.

This can be quite an overwhelming process, particularly if you have never done this before. However, one element of the car rental process that is essential to fully understand is zero excess car hire.

In order to fully explain what zero excess car hire is, and the benefits of choosing it, we have written this comprehensive guide for you, explaining everything from what zero excess means, to common exclusions in zero excess car hire policies and everything else in between.

 

Introduction to Car Hire Insurance

Firstly, we will discuss what car hire insurance is and why it is important.

What is Car Hire Insurance

Car hire insurance is a type of insurance policy that helps protect you and covers you from certain damages when hiring a vehicle. Much like you pay for insurance on your home, holidays and vacations, perhaps your mobile phone, and your own vehicle – car hire insurance covers the same elements.

Should you be involved in a car accident in a hire car, car hire insurance protects you from any legal issues or financial implications that can arise as a result of an accident – particularly if the accident was not your fault in the first place.

When it comes to insurance for a hire car, there are generally two types: Collision Damage Waiver (CDW) and Loss Damage Waiver (LDW).

Both CDW and LDW can be used interchangeably, but there are generally slight differences between the two. While both of them offer a form of coverage for an accident, LDW can also cover damages such as theft, or loss of use of the vehicle as a result of a car accident.

Why is Car Hire Insurance Important?

There are a few reasons why car hire insurance is important – firstly, you would never drive your own car or a friend/family member’s car uninsured as it is illegal, so why would you do the same with a hire car? Here are just a few reasons why car hire insurance is important:

• Legal Reasons: As mentioned just above, it is illegal to drive a car without insurance, so ensuring that you have hire car insurance is essential. Almost all car hire insurance companies will not let you take the hire car away without some form of insurance anyway.
• Financial Protection: While the majority of car hires are safe and sound, there is always the risk of being involved in an accident, even if it is not your fault. With insurance, you will not have to fork out to pay the majority of the expenses, as this is most likely going to be covered by the fact that you are insured.
• Confidence: Drive confidently, knowing that you are complying with local laws and regulations and that you are covered should you be involved in a car accident. 
• Avoid Unexpected Costs: You can plan ahead for car insurance, meaning that insurance costs will be factored into both your car hire budget and your holiday budget. This means that you will avoid any unnecessary expenses or at least any huge amounts of money to have to pay for damages, should you be involved in an insurance claim.
• Making Claims: Speaking of claims, the claims process will be much easier with insurance, as you have all of the necessary documents to prove that you are insured – and so will the car hire company, which will make making a claim so much easier should you need to do so for any reason.

What is Zero Excess?

Simply defined, zero excess means that you will not have to pay any money towards an insurance claim.

How Zero Excess Differs from Standard Insurance Policies

You may have noticed when applying for car insurance on your own private vehicle that you have several excess options – this is usually listed as £250 excess, £500 excess, £750 excess and £1,000 excess. The excess is defined as the amount that you are willing to pay on top of any insurance claims. This is also known as a deductible payment.

For instance, if you were involved in an accident, and you had selected the £500 excess amount, you would legally be bound to pay £500 towards any claims made against you. The £500 is the deductible payment in this scenario.

However, with zero excess, this means that you will not pay any money towards an insurance claim. When hiring a car, this can initially seem daunting – but there are just as many benefits of zero excess car hire as other types of excess amounts. In the following section, we will discuss some of the key benefits of choosing zero excess car hire.

Benefits of Choosing Zero Excess Car Hire

There are several benefits of choosing zero excess car hire.

• Financial Protection: Perhaps the most obvious one that comes to mind is the financial safety net that comes with zero excess car hire. This means that should you accidentally damage your rental car (within policy limits) you will not have to pay anything towards the damages. In foreign countries, sometimes even minor damages such as scratches or a chipped windscreen can rack up huge bills, but by choosing a zero excess option, it means that you will not have to pay over the odds for these types of damages, as you are not liable for any charges.
• Avoiding Unexpected Costs: By opting to choose a zero excess car hire option, you can budget more efficiently for your holiday overall. You do not need to have any money set aside for potential accidents, because you will not have to pay anything towards an accident.
• Easy Claims Process: If you end up making a claim on your insurance, the entire process is vastly simplified when choosing a zero excess option. For example, you will not need to handle any deductible payments – which are a feature of other excess policies – and can actually save you both time and money in the short term.

 Understanding Excess in Car Hire

In order to decide if zero excess is the better option for you, or whether or not you would prefer to pay excess when it comes to insurance for car hire, we have put together this next section explaining what excess is in the car insurance world, as well as some common misconceptions about excess.

What is Excess?

Simply defined, the excess is also known as the deductible, which we discussed above. Excess is the limit that you agreed to pay upon choosing your insurance, should the hire car become damaged while under your protection.

It is also worth mentioning that excess can be split into two distinct categories. Firstly, standard excess is the basic level, which has been explained above. 

However, there is another level of excess known as additional excess (or occasionally extra excess). Additional excess is usually reserved for more specific types of damage, such as damages incurred in high-risk areas or in an off-road accident, for instance. Examples of high-risk areas include those with low visibility – such as roads in mountainous regions, where there is often low visibility, or perhaps ice on the roads. Other examples can include rural country lanes, where road markings are unclear, or even places such as Holy Island in the UK, where drivers can be caught out by the tide and stranded in the North Sea on the causeway if they are not careful.

Make sure to read the policy that you choose thoroughly to check if there is any additional excess, especially if you are planning on driving across any high-risk routes.

 Common Misconceptions About Excess

Despite the large amount of information online about excess car hire, there are still lots of misconceptions surrounding it. Here are a few of the most common.

Excess Only Applies to Theft or Damage: This is one of the most common misconceptions surrounding excess. Unfortunately, this is not too accurate. For example, the excess could be required to pay towards any liability claims, especially if a third party is involved.

Example scenario: You cause a car accident while driving, and while the other driver emerges unscathed, you have run into a pedestrian and break their leg. This could be a scenario where the excess amount on your insurance is required to be paid towards damages owed to the third party – the pedestrian in this case.

Excess is a One-Off Payment: Another common misconception surrounding excess is that it is simply a one-time fee. In reality, the excess can be used to pay towards individual claims, not just one whole claim.

Example scenario: You have caused a car accident, and three people in another car have all suffered injuries, ranging from whiplash to broken bones. Each person in the other car could put an individual claim against you, and you would likely be required to pay the excess on each claim if it warranted that amount.

What Zero Excess Car Hire is important?

You may have noticed the pattern of car hire with excess can often involve paying out much more than you intended to pay out, and that risk is eliminated when opting for a zero excess car hire choice instead. In this following section, we will outline some of the key aspects of zero excess car hire, and why they are so important.

Financial Protection and Peace of Mind

Of course, with financial protection comes peace of mind – two benefits for the price of one! Knowing that you do not have to fork out any extra amounts of money, or any nasty surprises is a huge benefit for zero excess car hire.

Furthermore, by choosing zero excess, you are in a good position because you are covered for any damages or theft to the vehicle, knowing that you do not have to pay any extra costs as a result, should you be unfortunate enough to end up in this situation.

This also gives you peace of mind and allows you to focus on why you hired a car in the first place – most likely because you are on holiday – rather than worrying about whether you have enough on a credit card or in your savings account to pay any excess on any claims should you be involved in an accident. By opting for a zero excess car hire, you are putting aside more time to enjoy your holiday, rather than worrying about money – it’s a win-win scenario.

Avoiding Unexpected Costs 

By choosing zero excess car hire, you can comfortably avoid any unexpected costs, because there are no hidden fees, even in the small print.

This also enables you to budget more efficiently for your holiday, because you will know the exact figure to pay for your insurance, without having to pay anything extra on top, even if you are involved in an accident or an insurance claim.

Furthermore, this means that you can put aside some more money for spending on souvenirs, or travel experiences, rather than keeping some set aside as the worst-case scenario for a car accident or an insurance claim.

Enhancing Your Travel Experience

Both of the aforementioned points contribute towards an enhanced travel experience. Whether that is because you have more money to put aside for activities while on holiday, perhaps treating yourself to an airport lounge, or for a few more meals out at nice restaurants, you can sit back, relax, and enjoy your travel experience much more by choosing a zero excess car hire option.

Another advantage that also falls into the category of enhancing your travel experience is that the claims process – should you need to make one – is much smoother. Because there is no excess to pay, this makes for an overall more enjoyable car hire experience – after all, there are no excess payments to worry about. What’s not to like about that?

What to Watch Out For with Zero Excess Car Hire

While the primary focus of this article is to highlight the benefits of zero excess car hire, there are several factors which should be taken into account in order to provide a more balanced view of zero excess car hire. These will be discussed below.

Hidden Costs and Fees

While you’re not going to pay any excess, there can occasionally be some hidden costs and fees associated with zero excess policies.

For example, fuel charges can fall into this bracket. Typically, when hiring a car, the car will have ascertain amount of fuel in it (usually a full tank). It is expected, out of respect, but sometimes noted down in policy, that you return the car with a full tank – or at least with the same amount of fuel that was in the car when you hired it. Falling to do so can result in an additional fee.

Additional drivers can also incur further expenses, particularly as they may not be covered on the zero excess policy, and excesses may apply to them. This can become burdensome should you wish to add another driver onto the policy, and can incur further fees.

A further hidden fee is the administrative fee. It is not uncommon for certain policy providers to have administrative fees when handling claims – so even though your zero excess policy means that you will pay no excess on any claims, you may have to pay an administrative fee for the company handling the claim in the first place. This can be inconvenient, so make sure you read all of the small print beforehand.

What are the Common Exclusions in Zero Excess Policies

There are certain types of damages which are often excluded in zero excess policies. Below are a few examples:

Damage to Windscreens

Because damage to windscreens can be very expensive to repair, it is not often included in zero excess policies. This means that should your windscreen become chipped, damaged or completely smashed, you will likely have to pay for it to be replaced.

However, there is always the option of purchasing windscreen cover separately, and it might be worth it, particularly if you plan on driving on gravel roads where the chance of chipping the windscreen is increased hugely.

Tyre Damage

The majority of the time, tyre damage is also excluded from zero excess policies. This means that should you be unlucky enough to get a puncture in a tyre, you will likely have to pay for the replacement tyre yourself. This can become expensive, especially if you have more than one puncture, or drive a larger vehicle.

Bodywork and Mirrors

Sometimes, damage to the bodywork and wingmirrors may not be covered by zero excess policies. This can include things such as chipped paint, scratches, dents or any damage to mirrors, including smashed glass.

Always make sure to take plenty of time-stamped photos of the car on your smartphone before hiring it, and make sure that the car rental company are aware of any scratches, dents and more before you take it away.

Interior Damage

Usually, interior damage is also excluded from zero excess policies. This can include stains and either leather or fabric tears. It’s always worth being careful and treating the car as if it was your own, or better. It’s also advisable not to eat or drink in the car, especially items like coffee or food with lots of sauce, which can easily stain the seats.

Like the bodywork section, always take lots of time-stamped photos before hiring the car so that the provider is well aware of any stains or damages that already exist inside the car before you have even touched it, to prevent you from being liable for these additional costs.

Reading the Fine Print: Understanding Terms and Conditions

While it can be difficult and seem like you are wasting your time reading the fine print, it is so important to do so.

Firstly, you should always read over the insurance policy itself – at least twice – and ask staff any questions that you might have. This is also a good opportunity to ask them about what is and is not included in the coverage – such as windscreen damage, tyre damage and interior damage.

You should always make sure that you understand how the claims process works, should you need to make one. This is especially important if you are in a foreign country where the laws might be different than in the UK or the EU.

In a Nutshell: How to Make Smart Car Hire Choice

To conclude, we will recap the key points when it comes to zero excess car hire and provide our final thoughts.

Recap of Key Points for Zero Excess Car Hire

• Car hire insurance: This is absolutely essential. Most places will not let you leave without some form of coverage – zero excess or not – so make sure that you are insured to protect yourself against any financial or legal troubles.

• Understanding excess options: Whether you want to opt for zero excess coverage or agree to pay a certain amount for any claims made against you, you should be aware which option suits you best – both personally and financially – and choose that option. Know what each form of excess comes with, including its limitations, too.

• Advantages and disadvantages: There are pros and cons to both types of excess, and understanding that some benefits may vastly outweigh others is essential for choosing the right type of policy. Make a list of the pros and cons given your circumstances around all types of coverage and policies and opt for the one with the most pros.

Final Thoughts on Zero Excess Car Hire

In conclusion, there are several reasons as to why you should choose zero excess car hire. Initially, it comes at a higher cost than policies where the customer agrees to pay a certain amount in excess, and it may not cover all types of damages such as windscreen or interior damages, but the advantages far outweigh the disadvantages. 

The claims process is much simpler through a zero excess policy, and there are rarely any hidden fees once you have thoroughly read the paperwork and understood the terms and conditions.

Opting for a zero excess car hire policy can greatly enhance your overall travel experience, leaving more room in your budget to enjoy your holiday with rather than putting it aside for any potential car insurance claims.

Countries offering Zero excess

Greece

Spain

Italy

Germany

Iceland

Albania

Cities offering Zero excess

Keflavik

Rome

Berlin

Majorca

Athens

Alicante

Reykjavik

Venice

Barcelona

Cologne

Rhodes

Santorini

Naples

Corfu

Mykonos

Bologna

Catania

Malaga

Palermo

Alexandroupoli

Lesbos

Kefalonia

Offenbach

Dusseldorf

Bergamo

Brindisi

Gravina

Lecce

Verona

Alghero

Thessaloniki

Olbia

Chios

Chania

Alonissos

Cagliari

Chios

Rethymnos