Insurance a tough call when it comes to rental cars

Insurance a tough call when it comes to rental cars

Auckland, Date. 15 March 2018. Less than two in five Kiwis pay for additional insurance offered by car rental companies. Canstar Blue looks at what the insurance covers you for and if it’s worth it?

Latest research from comparison company Canstar Blue reveals that only 38% of customers pay for additional insurance when they rent a car and worryingly, only 39% of people read the terms and conditions that defines their responsibilities and liabilities.

Canstar Blue spokesperson Emma Quantrill comments:

“Most rental cars come with a basic level of insurance but this means the consumers may still be liable for thousands of dollars’ worth of repairs should the worst happen. With all insurances, when you pay your premium you are buying peace of mind and, in most cases, you have an option to pay a higher premium in return for minimising your personal financial risk. Rental car insurance is no different”

How rental insurance works

When you hire a vehicle, you will usually be given various options when it comes to insurance. The most basic is that you simply agree to the limited insurance that is included in your rental price. This may be the cheapest up-front option but it could cost you dear in the long-run. Excesses on these policies tend to range from around $1,500 to over $3,000 and to make sure you’ll pay it, a bond – which can be greater than the excess – will be held on your credit card when you collect your vehicle.

You will then be given the choice of various ‘top-up’ premiums, that will reduce your excess and, in some cases, the upfront bond you will be required to pay. Taking
GO Rentals as an example, on a budget fleet car for an over 25-year-old driver, the ‘basic’ insurance carries an excess of $1,500 and would require you to pay an upfront bond of $1,500. Select to pay a bit extra on your premium and go for their ‘assured’ insurance, your excess reduces to $250 and no bond is required.

Quantrill continues:

“Looking at the insurance options when you rent a car is something definitely worth considering. Obviously, a lot depends on the length of time you’re hiring the car for and the journeys you intend to make but paying a few bucks extra upfront, could save you a lot of money if you are unfortunate enough to be involved in an accident.

“It’s true that it does take a little more time as there are a lot of things for you to consider, but an informative website and knowledgeable customer service representatives should always be able to answer your questions.”

Most Satisfied Customers

This years’ Canstar Blue survey also revealed that good customer service is not only important when dealing with insurance questions. According to the people we spoke to, their key drivers of customer satisfaction were the standards of customer service and booking process.

This years’ winner of the Canstar Blue Customer Satisfaction Award, GO Rentals, rated a maximum five star on not only these two areas, but in every category Canstar Blue rated.

Accepting the award, GO Rentals managing director, James Dalglish said:

“We are incredibly proud to be accepting this year’s Canstar Blue Award, particularly as it recognises the commitment we have made as a company, to provide our customers with the best possible customer experience in the rental industry. In recognition of our amazing teams on the ground, I’d like to dedicate this award to them and our loyal customers”

For further information regarding this release, please click here.

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