Sixt car rental customers who opt for the 'no extra protection' option could face liability for the full value of a replacement car if their rental is damaged or stolen. This new option means that, unlike typical car hire in the UK and Europe, a Collision Damage Waiver (CDW) is not automatically included.
A CDW usually caps a renter's liability to an excess, typically between €1,000 and €2,500. Without this, customers could be responsible for tens of thousands of pounds. For example, a Maserati Grecale, retailing at around £60,000, was found available for hire from Heathrow with 'no extra protection', meaning the customer would be liable for its full value if additional insurance was not added.
Customers with their own annual or single-trip car hire insurance, known as Excess Reimbursement Insurance (ERI), may not be covered. Specialist insurers have confirmed that standard ERI policies only cover the excess of an existing CDW policy, meaning they do not apply if there is no CDW in place.
To reduce liability with Sixt, customers must choose one of its premium insurance options: Basic Protection, Smart Protection, or All Inclusive Protection. The Basic Protection option includes a CDW, similar to what is provided as standard by other major providers.
The British Vehicle Rental and Leasing Association (BVRLA), of which Sixt is a member, states in its code of conduct that rental companies should inform customers about their maximum financial responsibility at the point of booking. The BVRLA is currently engaging with Sixt to establish facts and determine if further action is appropriate.