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Save big $$$ on hire car excess insurance - Money Tip without the Boring Stuff

Posted by Ask_Josie on Dec 2nd, 2008

A big thank you to Mick for this one.

Mick travels a lot and has shared this fantastic tip to save money on Damage Waiver Excess Insurance that car hire companies entice you to pay. You know the drill. You front up to pick up the keys and sort out the paperwork and then they ask if you would like to purchase insurance to waive the excess which is usually a daily charge. You smell a rat, but you are in a bind as you don’t want to risk it. If you had an accident or your car was stolen you might be liable to pay thousands of dollars. It would certainly put a dampener on the holiday.

However, did you know that travel insurance provided by various companies already covers this excess (in the fine print)? Even if you travel domestically you can purchase travel insurance for medical, unexpected cancellation, lost luggage etc.

Mick suggested I check out Defence Health Travel. You don’t need to be a member of the armed forces, anyone can join. I also researched the cost of excess insurance with Hertz (not picking on Hertz specifically, they were all pretty much the same). Hertz charges $34.90 per day to waive the standard excess of $3,300. If you needed a car for one week, insurance would be an extra $244.30.

A little forward planning could save you heaps. If you purchased a one week domestic travel insurance policy with http://www.defencehealth.com.au/Travel/Whytravelinsurance/tabid/185/Default.aspx as a single (assuming only one person will be driving and aged less than 70), the cost is $37.00, saving a whopping $207.00. Their policy automatically gives you $4,000 of hire car excess cover, plus extra benefits (including $10K for hijack and kidnap - very handy!).

Thanks Mick for this great money saving tip and reminding us that we need to ‘Watch out. Everyone is after our money. Learn how to outsmart them!

Josie Kay

30 November 2008

ps. if you have a money saving tip that you would like to share, please send me an email via ‘ask a question’

pps. Defence Health Travel is not a sponsor of www.askjosiekay.com.au.

pppa. but these guys are - iselect*