Re: Car Hire, Excess


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Posted by John Nichols on August 28, 2004 at 16:45:35 from 165.91.196.56 user Mcneacail.

In Reply to: Re: Car Hire, Excess posted by Jim McDowell on August 27, 2004 at 19:12:37:

When you hire a car the insurance rate varies depending on the percenatage of the risk you are willing to bear. I find that the name used to define your risk level varies from place to place (deductible, excess, copayment etc.. It must drive the international insurance people crazy.

A deductible or an excess is the amount you have to pay to have the car repaired before the insuracne company money cuts in. Same as a co-pay for medical and if the Doctor charges 25 bucks then under our medical we pay the lot. (I don't know of Doctors that only charge 25 this is merely an example.)

In Australia from Thrifty with a NSW drivers license and being 47 years old I had the option of taking the car for 34 dollars per day with the amount that I had to pay as a maximum being 3500 AUD if I damaged the car, I was told that they take the full 3500 from my account in the event of an accident and refund the difference later! I did not like the risk.

It cost me an extra 34 dollars per day to drop my deductible or excess to zero. Some one in a carpark scratched the door and I paid nothing as a deductible or excess, but the extra hire cost to get rid of the deductible or excess was 34 per day with a cap of 340 in the hire period. We had just lost 500 pounds to a deductible in England and as work was paying part of the car hire in Australia I paid the extra 34 per day.

In England I believe we had 2 choices for the insurance deductible or excess 150 pounds or 500 pounds. If you drive a car in the Lake Distraict with the narrow roads and stone walls take a low excess or deductible as you are gunna hit one of those walls.

From the Insurance people in Canada I got the follwing note.

Increase your deductibles
In a nutshell, the higher your deductibles, the lower your insurance premiums. Insurance was really meant to cover you for damages you could never afford on your own. If you can afford a $1,000 repair job, then raise your deductibles to $1,000 and pay less for your insurance.

We lost 500 pounds - that hurt. They took the 500 pounds straight away from the creidt card and then told us later it cost 500 pounds to fix. I was not taking the same risk in Australia.

I hope this explains the issue.

John


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