Do you need to pay the extra fees to reduce your damage liability when you hire a car?
Travel - 300 Words - Reading Time 3 Minutes
Whenever I have hired a car, I agonise over that decision to pay the additional fee to have the damage liability excess reduced. If I don’t pay it, and the car is damaged, I am going to be up for the excess of about $4,500. But if I pay the additional fee, it virtually doubles the cost of hiring the car - and the excess will still be around $400.
I used to think it was not that important. If someone ran into me, I could sue them and I just had to be careful that I did not cause an accident. But then I discovered that you have to pay the excess regardless of how the damage is caused. For example, if the car happens to be in a hail storm.
On my last trip, I decided to do the research and found a few options for the insurance - including some third parties. But, the big discovery for me was that I already had the insurance I needed. One of my credit cards gives me complimentary cover for the excess (up to $5,000) on a hire car in Australia - providing I use that card to pay for the hire.
Problem solved. I no longer need to pay the additional fee charged by the Car Hire company, and I can drive away secure in the knowledge that I am fully covered.
Worth checking what cover you have through your credit card.
