The Fixer: car hire excess

Have you been left out of pocket due to poor service or sharp practice? Do you have a money problem that won't go away?

It can seem impossible to get a fair result when you are battling a financial issue alone. But never fear! The AOL Money Fixer is here to help.

Dear Fixer,
Last time I hired a car while on holiday, I got stung for close to £400 after someone kindly scraped the car while it was parked in the street - and failed to leave a message with their contact details.

I am keen to avoid being caught out in the same way when I hire a car in Italy this summer.

However, the cost of extra insurance to cover against minor damage of this kind with the car hire company is astronomical and more than doubles the overall cost.

Is paying for this insurance the only way to protect against big bills should the hire car be damaged while in my possession?

F Grover, Leeds

Dear Mr Grover,
The excess waiver or collision-loss-damage waiver insurance offered by car hire companies can often add hundreds of pounds to the hire cost. Some companies charge £25 a day or more for cover of this kind.

But, as you discovered, not taking it out can prove even more expensive should you have to pay the excess - or amount you must pay towards any claim - on one of their standard policies.

The good news is that you can buy much cheaper standalone excess insurance from a separate insurer before you go.

Specialist companies such as insurance4carhire and CarHireExcess offer cover starting at under £2 a day, while some general insurers such as the AA also offer policies of this kind.

Shop around for the best deal and you can save money and stay protected while you are away.

The Fixer

Whatever your financial problem, write to themoneyfixer@aim.com and The AOL Money Fixer will get on the case.