New research suggests that hundreds of millions of pounds is being wasted every year by British holidaymakers purchasing excess insurance from car rental firms. Insurance specialists iCarhireinsurance claims that drivers of rental vehicles in Europe spend over £1 billion on making sure that vehicles have been covered for the excess on any damage, and that much of this is an unnecessary waste.

According to the online insurance supplier, around 45 per cent of hire car drivers will take out excess insurance which will protect them from hefty bills in the event of any damage to the car. However taking out the extra insurance at a car rental desk could cost around £10 per day.

iCarhireinsurance claims that those who think ahead should be able to pick up excess insurance online before they travel for around £2.99 per day. Overall, drivers could be saving themselves around £50 per week on their European car hire.

iCarhireinsurance founder and chief executive, Eduardo Suarez, said that many car hire firms waited until customers were actually in the process of collecting their vehicles before mentioning the risks associated with not having excess insurance cover, by which time a customer has little choice but pay the extra on top of the rental fee.

He added that some firms would not cover the most vulnerable parts of the vehicle in their insurance. He went on to say that by pre buying insurance online, customers had the chance to examine the fine print, and then pick up a rental vehicle knowing that it is fully covered for any incident.