Many motorists hiring cars in France are under the impression that by ticking the Loss Damage Insurance (LDI) box, they are covered against any unforeseen event that happens to the rental vehicle. In reality, this is no longer the case.

 

Most car rental companies have introduced, and steadily increased, an excess on their insurance cover – usually known as Loss Damage Waiver (LDW) - for which renters will still be liable and which will be taken off their credit card at the end of the rental. The excess charge, once an inconsequential amount, is now rarely less than £500 and can be as much as £1,600. This applies to cars involved in an accident but more particularly to those that are stolen, a huge exposure that most motorists would not contemplate for one moment in respect of their own vehicles back home.

 

Some, but by no means all, car rental firms offer a further option, the so-called Super-LDW. However, the additional charge can be as much as £144 per fortnight, adding significantly to the cost of the rental. Even this still does not always eliminate the excess entirely, and may not cover damage to windscreens, other windows or tyres. Damaged tyres are a common phenomenon, as a result of misjudgement in parking an unfamiliar vehicle.

 

Fortunately, help is at hand. Insurance4carhire, a company registered with the Financial Services Authority, sells a specialist LDI policy that offers complete protection against car rental excess charges and covers damaged tyres and broken windows as well, up to a total of £2,000. It costs £49.00 (plus 5% insurance tax) for any hire period up to 31 days.

Larry Dale Ursich, who devised the scheme, says that provided the main renter is the policyholder, it covers any other drivers named on the rental agreement up to a maximum of eight persons aged 21 or over. Insurance4carhire also markets a new LDI policy known as Europe Family & Partners, costing £79, which allows two people (husband/wife/partner) to hire cars individually and separately. This is particularly good value for large family groups who need two rental cars on holiday.

 

When collecting hire cars, renters may often be encouraged to take out other insurance that they do not really need. This includes Personal Accident Insurance (PAI) which, for about £50 a fortnight, insures the renter against death or injury for the duration of the rental period whether driving or not, and his or her passengers when they are occupying the vehicle. For most people this simply duplicates cover provided on a standard travel insurance policy.

 

The same applies to Personal Effects Cover (PEC), which insures the property of the renter against loss or damage and that of his/her immediate family normally resident in the same household. The cover, which also costs about £50 per fortnight, is valid anywhere for the duration of the rental but again, for most travellers, it duplicates what is already available by means of a standard travel insurance policy.

 

In order to keep down additional costs, it is advisable to decide beforehand who is likely to need to drive the rental vehicle, as each additional driver attracts an additional charge on a daily basis. If the rental company is in a particularly conscientious frame of mind, you may be asked to produce both parts of the driving licence, both the embossed plastic card and the Counterpart printed document, for each driver named on the rental agreement. Many companies charge extra for drivers aged 21 to 24 – very few will insure any driver below 21 – and some of the larger rental companies will no longer permit anyone under 25 to drive at all.

 

Another additional charge is the child seat, compulsory for any child aged 5 or under. It is worthwhile asking for written confirmation that this will be provided, and reminding the rental location just before you travel, as it can be often forgotten, leading to significant delays.

 

However tempting it may be simply to drive away, check the car thoroughly: even the most reputable of rental companies have been known to supply vehicles with unrecorded dents, defective spare tyres and missing jacks. Even if you are quite sure you have not damaged the car, ask for it to be checked by the rental company when you return the keys, to avoid disputes later. If the rental station says it is too busy to make a check, write on the rental agreement that you are certain the car is undamaged and that you offered an inspection, which was refused. Otherwise you may join the ranks of hundred of motorists each year who find unexpected deductions on their credit card statement that may prove extremely time-consuming to recover.