The one thing you need to know before you rent a car

DON’T be duped into taking this extra. It has been revealed that travellers can save up to five times the cost of this one thing.

Before you rent a car read this

TRAVELLERS can save up to five times the cost of hire car insurance by doing their homework, consumer watchdog Choice says.

Choice says purchasing car rental insurance through a hire car company can cost up to 491 per cent more than organising coverage under a basic travel insurance policy.

Most car hire companies charge between $19 to $34 per day to reduce hire car excess while domestic travel insurance costs around $35 for five days.

A standard travel policy covering up to $6000 excess would cover the highest excess of around $4000, Choice research shows.

Save money on car insurance and have more cash for your actual holiday.

Spokesman Tom Godfrey said car accidents could be very costly so it wasn’t surprising that people took out extra coverage to reduce their liability.

“We’ve all felt the pressure to get insurance when hiring a car, but the reality is if you’ve taken out travel insurance you can save yourself a lot of money,” Mr Godfrey said.

“In addition to being expensive, buying car insurance from hire companies can leave you grappling with exclusions that will leave you on the side of the road if something goes wrong.” Mr Godfrey cautioned consumers about policy exclusions such as driving on unsealed roads, driving outside towns or cities between dusk and dawn and using incorrect fuel.

He added that consumers who already had coverage on their credit card had no real reason to take out more insurance through a car hire company.

The Insurance Council of Australia, QBE Insurance and Avis were unavailable for comment.