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Don't get ripped off with your Algarve car hire insurance
Let’s have a look at what insurance includes, its limitations and how you can reduce your liability to a minimum. The insurance price quoted should already include cover for a collision (Collision Damage Waiver), theft and third-party liability. You should check this is the case. If not they can be purchased at additional cost, but do take this into account when comparing the costs of different products. What is Collision Damage Waiver (CDW)?Most car hire agreements in the Algarve will include CDW, but you should check to see if this is the case. Simply, CDW is an additional charge, which limits the amount you have to pay for damage, in the case of an accident whilst driving, to an amount known as the ‘excess’. This amount can vary from a few hundred Euros to thousands of Euros depending on the policy. Without CDW you may be liable for the full cost of any damages.If you want don’t want to be liable even for the excess, then you can take out Super CDW (SCDW) What is Super CDW (SDCW)?SCDW is an additional charge to the CDW. It will pay out the excess, which CDW has left you, for damage to the hire car in an accident. This could save you a significant amount of money, but it comes at a hefty cost. This cost can typically be €10 - €16 per day. So for a 10-day trip the additional cost would be €100 or more, which is a fair proportion of the original car hire cost.There are also significant exclusions to SCDW and CDW. They will not cover damage to windscreens, wheels and tyres, the underside, the roof or the interior of the car. There are other exclusions that you should be aware of. For instance, if it was proved you were negligent or under the influence of alcohol, then it may not come into operation. To reduce the cost of SCDW, you can take out and annual policy to cover the excesses. This will save you money compared to most car hire firms, but not all. Holiday Autos and Carrentals are brokers that offer very competitive SCDW prices. However an annual policy may well be a winner, if you are planning multiple trips. I am only aware of one company who provides this at the moment. This is Insurance4carhire.com and the policy this will cost you around €75 for a year's cover in Europe. The huge advantage of Insurance4carhire is that their policy covers damage to the vehicle’s windows, tyres and also the under-carriage. Try finding that cover from a car rental company! Even the most careful of drivers can get stone chips to the underside of the car or the windscreen, so it could save you a small fortune. It is worth checking with your credit card company, as they may give the same cover as SCDW. What is Damage Excess Waiver (DEW)?If you have Damage Excess Waiver, you will be refunded the excess charged for fixing damage to the hire car if it gets scratched or bumped in a car park for instance. Like SCDW it does not cover you for damage to the wheels, tyres, windows, roof, the underside or the interior of the car.What is Theft Waiver?Theft Waiver (also known as Theft Protection) gives coverage for theft, or attempted theft, of the vehicle. It is normally included within the basic insurance package, but you should check this. You will have to pay the ‘excess’ portion of the claimWhat is Personal Accident Insurance (PAI)?Personal Accident Insurance (PAI) provides benefits in the event of accidental death or accidental injury to the car renter and passengers occurring during the rental of a vehicle. This optional coverage, and covers you for twenty-four hours a day for all accidents, whether the renter is actually in the vehicle at the time of the accident. Passengers in a vehicle are only covered for accidents occurring while they occupy the vehicle.Personal Effects CoverPersonal Effects Cover (PEC) pays out if your property is stolen from a vehicle. Check this out as it is usually covered on house insurance.
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