Daily Car Insurance Under 25 in UK | Car Rental Insurance

You can find many daily car insurance plans available in UK that is designed for situations where you need to hire and drive a car on certain days but your actual schedule is unpredictable. For example, you may need a rental car for a week while you personal vehicle is being serviced at the workshop. However, you know that you may need the flexibility to extend your temp car insurance by another day or so in case there are some delays or unexpected problems detected during the workshop servicing. For such cases, the garages will arrange for easily one day car insurance for their clients.

The coverage provided by these short term car rental insurance are not different from the conventional ones, although the main difference here is that there are lesser options available and you usually just sign up for a pre bundled package.

As required by the traffic laws, minimum liability car coverage protection will be included as well as theft/fire cover and collision damage cover that will pay for any damages and losses inflicted on the rental car while it is in your possession.

The other optional components such as windscreen cover, personal injury cover etc are usually not considered by the drivers because most people will simply choose the cheapest daily car insurance plan available.

Then again, there is still the policy deductible that requires the drivers to pay for their share for any repair bills incurred. This acts as a risk buffer for the car rental companies which remind their clients to drive carefully and take proper care of the rented vehicles even if they do not belong to them. The policy deductible on daily car insurance is typically between $500 to $1000 dollars. Although you can lower this deductible on standardized annual plans, you are not allowed to do so for most temporary car insurance because of the greater risk to be borne by the insurer.

One Day Car Insurance

Daily car insurance are usually bought at the car rental places and paid for together with the fees on the hired vehicle. However, there are some people who are allowed not to buy such one day car insurance cover. That is because these are drivers who already have an existing plan on their own vehicles that automatically extend liability cover whenever you use other cars on a temporary basis. For example, they may rent a replacement vehicle if they do not get a courtesy one from their driving plans.

If you are not a car owner, then it is most necessary for you to buy daily car insurance when you rent a car or borrow one from your friends and family. For the latter cases, you can choose to be added as a secondary driver to the existing auto insurance but you need to pay a rider premium. Note that this is meant to cover the entire policy year so if you are only going to drive it a few times, you will be better off with a cheaper daily car insurance offer.

If you already buy several types of policies such as home insurance, pet dog insurance etc from the same company, chances are you will be eligible for umbrella discounts when you get daily car insurance from them as well. We are not saying this will be the best option in terms of protection and service, but most likely it will be more convenient and cheaper for you, as long as your current insurer do provide such short term car insurance.

Car Insurance Comparison in UK

Before buying, it is important to get several quotations from AXA, Tesco, Churchill, Elephant car insurance etc and do a car insurance comparison against what is included in the rental company's daily car insurance rate. Besides checking out the costs, you need to look at the deductible, maximum claim benefits from third party, theft and fire, collision damage waiver, personal injury cover etc.

The lower these payout benefits are, the cheaper your premiums will tend to be. Most of the time, these maximum cover are capped at lower values compared to a standardized policy. Most people tend to be non fussy and get any cheap daily car insurance policy that meets the minimum legislation requirements. The amount of time spent on researching for the best plan is often nil.

Half the time, this is justified since you are not likely to save a lot of premiums when such one day car insurance cover do not extend beyond a week for most people and there is no economy of scale here. The rental shop is likely to have done the proper research and priced their daily car insurance plans competitively such that clients will just pay and get a one stop solution to their temporary driving needs.

For those who are worried about the possibility of paying through your nose when incidents not covered by the basic daily car insurance were to occur, you can request for additional/option riders or lower deductibles on top of your short term driving protection coverage.

There is usually a high deductible involved with daily car insurance because you do not own the vehicle and psychologically places less care for them. This detachment is known to cause car hirers to abuse the rented vehicles and more likely to cause damages and accidents. To curb their deficits on repair bills and loss of rental income when the cars are undergoing maintenance, a high policy excess/deductible is deliberately place to deter hirers when driving recklessly.

Comprehensive Temporary Car Insurance

If you choose to buy comprehensive temporary insurance from other insurers, the holiday car rental companies will typically not raise any objections as long as the payout benefits are better compared to their recommended plans. These businesses make money when more people patronize and hire their vehicles, and not by selling daily car insurance and earning the commissions. If they try to be helpful and offer a wide variety of one day car insurance, it is going to confuse customers and drive away business. Therefore their primary motivation is to get the one cheapest coverage plan that make their bundled car rental rates attractive.

The driver risks are borne by the underwriting insurers anyway, and it is not their problem with claims and reimbursements that over exceeded the stipulated payouts of these cheap daily car insurance policies. In short, you will be able to get more customized daily car insurance plans or car rental insurance in UK by buying directly from the insurers rather than through an intermediary such as the car rental places even though it is more convenient.