AN insurance company is offering business travellers a new policy to protect them from excess charges on car rentals.

Insurance 4 Car Hire has extended its annual policy that offers motorists cover against what it describes as the 'contentious payment' of excess charges when renting a car. Sold through the website www.insurance4carhire.com the company's annual Gold policy covers the southern hemisphere countries and Europe for £49. A Europe-only policy costs £39.

The company said excess charges vary from country to country and from one rental company to another. It warns that motorists who do not take out the cover could pay more than £1,000 if involved in an accident in, for example, Italy.

Managing director Larry Ursich said: 'Motorists who don't take excess payment cover can be faced with a huge bill.'

The Gold policy offers cover against paying an excess if the rental car is stolen, against damage to the vehicle, broken glass and tyres damaged beyond repair in a blow out.