Basic Insurance vs Premium Insurance
When you hire a car, one of the things you don’t want to be thinking about during your holiday is “What happens if I damage the car?”
At Direct Car Rental Quesada, we keep our insurance options fairly simple. Basic Insurance is included in the price of your rental, so there is no extra charge for the standard cover. The important thing to understand is that Basic Insurance comes with a damage excess, which means you could be responsible for the cost of damage up to the amount stated in your rental agreement.
If you’d rather not have that worry, you can choose our Premium Insurance for an additional daily cost. Premium Insurance has no damage excess, so you don’t have the same financial liability for covered damage to the vehicle.
So, which option is best for you?
It really comes down to how much you want to pay for your rental and how much risk you’re comfortable accepting.
What Is Basic Insurance?
Basic Insurance is included in your rental price.
This is the standard insurance option that comes with your Direct Car Rental booking. You don’t need to pay an additional amount each day to have the basic cover.
However, Basic Insurance does have a damage excess.
An excess is simply the amount you could be responsible for if the rental vehicle is damaged during your hire, subject to the terms and conditions of your rental agreement.
For example, let’s say your rental agreement has a damage excess of €800.
You accidentally scrape the bumper while parking and the damage costs €350 to repair. If the damage is covered under the rental agreement, your liability would be based on the actual cost of the damage rather than automatically being charged the full €800.
If the damage costs €1,500, your liability would generally be limited to the €800 excess, assuming the damage is covered and there hasn’t been a breach of the rental conditions.
The important thing to remember is that the excess isn’t a charge you automatically pay when you collect the car. It’s the maximum amount you may be responsible for in the event of applicable damage.
What Is Premium Insurance?
Premium Insurance is an optional upgrade that you can add to your rental.
The main difference is very simple:
Premium Insurance has no damage excess.
So, if you have an accident or damage the vehicle and the damage is covered under the terms of the rental agreement, you won’t have the standard damage excess to pay.
You pay a little more for the rental upfront, but in return you have much more peace of mind while you’re driving the car.
For some people, that’s worth it.
After all, nobody wants to spend their holiday worrying about whether a small scrape in a car park is going to cost them hundreds of euros.
What Does the Damage Excess Actually Mean?
This is probably the part that causes the most confusion when people hire a car.
If your insurance has, for example, an €800 excess, it doesn’t mean that you’ll automatically be charged €800 if something happens.
For example, imagine you’re reversing out of a supermarket car park and unfortunately catch a wall.
The repair costs €250.
If the damage is covered by your insurance, you wouldn’t normally be charged €800 simply because that is the excess. The actual cost of the damage would be considered, subject to the terms of your rental agreement.
Now imagine the damage is much more serious and costs €2,000 to repair.
With an €800 excess, your liability would generally be limited to €800, provided the damage is covered and the rental conditions have been followed.
That’s what the excess means.
It is your maximum financial responsibility for covered damage, rather than an automatic fee.
Why Do We Have an Excess on Basic Insurance?
The reason is quite simple.
Including Basic Insurance in the rental price allows us to keep our standard rental prices competitive while still providing insurance cover with every rental.
Rather than making every customer pay for the most comprehensive option, we give you a choice.
Some customers would rather have the cheapest possible rental and are happy to accept the excess.
Others would rather pay a little more and have the reassurance of knowing they have no damage excess.
There isn’t a right or wrong choice. It just depends on what works best for you.
Check the Car Before You Drive Away
Whichever insurance option you choose, we always recommend having a quick look around the vehicle before setting off.
Check the bumpers, doors, mirrors and other areas of the car for any existing marks or damage.
If you see something that hasn’t already been recorded, let us know.
It’s also a good idea to take a few photos of the car when you collect it. It only takes a couple of minutes and gives you a record of the vehicle’s condition when your rental started.
You’re going to be taking plenty of holiday photos anyway, so taking a few of the car isn’t going to hurt!
Ready to Hire Your Car in Quesada?
Hopefully, we’ve made the difference between Basic and Premium Insurance a little clearer. Basic Insurance is included in your rental price and has a damage excess, while Premium Insurance is an optional upgrade with no damage excess for covered damage.
Ready to book? Book your car hire in Ciudad Quesada or take a look at our automatic car hire and 7-seater car hire options.
For longer stays, check out our long-term car hire.
Have a question? Contact us and we’ll be happy to help.
