Perhaps the most common sector for excess protection insurance is the hire car market. Given the relatively high cost of the standard excess on the insurance supplied with many rental cars, customers have typically sought ways of safeguarding themselves against the potential liability by purchasing additional excess cover.
With respect to additional protection for the relatively high rates of excess in car rental agreements, customers typically have the choice of either:
- purchasing supplementary excess cover from the car hire company; or
- buying excess protection insurance from an entirely independent specialist provider (since quotes are typically considered to be far more competitive than similar cover purchased from the car rental company).
With the insurance excess on many car rental agreements typically involving several hundred, if not more than a thousand, pounds (depending, of course, on the type of vehicle being hired and the part of the world in which you are renting it), this form of cover might make especially good sense.
It might make particularly good sense, of course, given that excess cover for hire cars can be arranged in the UK in advance of your travels, to cover not only a single period of car rental, but for multiple occasions, valid for car rentals in practically any part of the world.
What may come as welcome news, however, is that this same principle of excess protection can be applied to many other forms of insurance cover, too. Whether it’s your home contents insurance, insurance for your PC or laptop, bicycle or practically any other item, the chances are that there is an excess attached. Any time that you make a claim, you become liable for the first part of the cost of that claim, up to the value of the excess that applies.
Indeed, you might have agreed to take on an additional, voluntary excess in order to negotiate with your insurer a lower rate of premiums.
In any event, whatever the actual value of the risk you’ve agreed to share in this way, excess protection insurance might help you cover the whole or part of the excess contribution you might have to make in the event of a claim. Of course, limits will apply.