Zero Excess Car Hire Insurance does not mean no deposit

When renting a car, many people confuse Zero Excess Insurance and it's effect on the Security Deposit.

This is understandable given that the rental car industry, do their best to confuse two seperate elements when renting a car, by linking them together.

It is common now for online car hire brokers such as Tipoa, to team up with a third party insurance company.

Tipoa work with Allianz and offer the Allianz Global Assistance as an optional extra. (details below)

However whilst this is a very sensible extra to include in your rental car reservation, it does not avoid, the car supplier on arrival, authorising your credit card for the security deposit, which happens to be normally based upon the amount of excess you have.

Therefore people understandably think that by purchasing the "zero excess insurance" they will not have to pay (have held against your card) the security deposit. This is not the case.

Zero Excess Insurance Tipoa Car Hire

ALLIANZ GLOBAL ASSISTANCE

Excess Cover Insurance:

Vehicle Hire Excess & Security Deposit protection Insurance

Avoid ALL Excess Charges for just EUR 6.74 a day! Allianz Excess Insurance gives you complete peace of mind. Most companies charge an Excess, if you have a claim - typically you pay the first EUR 1,000

Our Policy covers:

• Excess up to EUR 3000.00

• Windows

• Tyres

• Undercarriage

• Roof

• Rental car key cover up to EUR 550.00

• Personal Possessions up to EUR 300.00

Allianz Global Assistance is authorised and regulated by the Financial Services Authority (FSA)

A link to the typical terms and conditions of the Allianz Global Assistance policy, in this example for the UK:- https://www.magroup-online.com/CTW/IE/EN/CTW_IE_en_TCs.html

SECURITY DEPOSIT

Each car supplier will "hold" a deposit on the drivers credit card, as a security deposit. Although this does not directly relate to insurance, the deposit amount is often based upon the Insurance Excess amount. For example if the insurance excess amount is 300 EURO then the security deposit will be that figure/sum. 

You can view each car's excess amount and terms and conditions by clicking on the link entitled " rate details " displayed to the right of each car photo at STEP2 of the tipoa.com online booking process.

If you reduce the excess insurance to zero then it WILL NOT mean that you will not have a security deposit to pay, but the security deposit amount may be reduced as a result.

Each supplier will put a "hold" on the credit card for the security deposit amount, for the duration of the hire, and this "hold" will be released when the car is returned and assuming there are no losses or damages.

You should ensure that you have enough "credit" on your card to enable the security deposit pre-authorisation to to take place successfully.

There is an increase of incidences where hire cars are never returned, and the security deposit assists the car supplier to establish the identity of the hirer, whereas a debit card or cash do not.