How does the excess risk reduction work?
Each owner sets the excess risk on their listing, this then directly aligns to the excess applicable to their insurer policy, e.g. $1,000. This is then is the maximum amount you pay as a renter if you cause damage during your rental (assuming no malice/negligence applies on your part). The excess applies per damage incident, so if you have two accidents resulting in two separate damage claims of $1,500 each, you pay two times the excess of $1,000.
Naturally, we hope that you won’t have any accidents while on holiday, but it’s better to be covered just in case. So to limit your exposure, you can choose to take out an excess risk policy through our website with our partner RentalCover.
This policy ensures that the maximum excess you would pay (for each incident claimed) is reduced to just $150. That means that in the example above, you only pay two amounts of $150 yourself, and we file a claim for the two outstanding $850 amounts with RentalCover for you.
Simultaneously, taking out an excess risk policy also lowers your deposit: you now you only have to pay $350 instead of the original ($1,000) excess amount. This amount is enough to provide the owner of the vehicle with security if you for example cause an accident and have additional kilometers.
What is the difference between excess risk and the deposit?
If you have an accident, most of the damage would be covered by the insurance taken out by the owner of the vehicle. This insurance has an excess, which varies per insurer. The owner fills in this excess amount within their ad, and that is the amount you pay if you have a significant accident. The idea is that the owner should not incur any additional costs from an accident that they did not cause, so the renter pays for the amount of the damage that the insurance does not cover. This excess applies per damage incident.
The deposit is what you pay as a renter before your booking starts. Camptoo holds this deposit during the rental. After the rental ends, both parties indicate if there are extra costs: damage, or surcharges such as extra kilometers. If there are none, the deposit is released or refunded. If there is damage/surcharges, the deposit is held until the amount of these costs is final. At that point, Camptoo pays out the costs owed to the owner from the deposit, and refunds the remained to the renter.
The amount of the deposit is equal to the amount of the excess. If the excess is reduced by taking excess rental cover, the deposit is set to $350. In both scenario’s, the deposit is usually sufficient to cover damages plus surcharges. If it is not, the remainder will be invoiced to the renter and paid to the owner as soon as the renter settles the invoice.
What does it mean when the excess applies per damage incident?
If more than one damage incident occurs during the rental period, it’s important to identify how many occurred. A damage incident is a single incident from which one or more claims arise. Example: if you drive into a narrow street and a tree branch scratches the vehicle along the entire right side, damaging the mirror, the bumper and the side skirt, those are three damages arose from one incident. The insurance company will see all damages as occurring from one incident, and will apply the excess once to the owner. This means Camptoo will also apply the excess once to the renter.
If there is doubt about how damages occurred and an insurance company determines that these damages arose from two separate incidents and applies two damage claims, Camptoo will also apply the excess twice.
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