When buying a car hire insurance policy it is always important to make sure you fully understand what excess is within your insurance policy and also what the implications of excess are. When choosing cheap car hire excess insurance amounts may be extremely high and this will have a negative impact should you make a claim on your policy. Sometimes it makes more sense to pay a higher price for your policy but to have a much lower excess.

The excess within your car insurance policy is the amount that you have to pay in the event that you are considered to be at fault for a claim made on the insurance policy. This would mean that if your excess is £150 and you are making a claim of £1000 you will be required to pay the first £150 yourself. In the event that a third party is found to be at fault this excess amount may be refunded to you.

The excess is often composed of two separate excess amounts – the voluntary excess and a compulsory excess. The compulsory excess is the amount that is imposed by the insurance company and is often calculated upon the basis of certain characteristics of the policy holder. For example young inexperienced drivers often have a higher compulsory excess amount as they are considered to be a greater liability by an insurance company.

The voluntary excess is the adjustable excess component. If you want to have lower insurance rates you can request a higher voluntary excess amount. Alternatively you can pay a higher premium for a no-excess policy. It is always important to consider the impact that the excess will have in the event of making a claim – paying less now may mean paying more in the long-run.

When choosing car hire insurance it is best to shop around for a competitive quote to suit your needs. Always check the excess within your selected policy before committing to it.