Please Note - If you are cruising around Australia you need to select Pacific.
With Regions, variances can apply for Bali, Indonesia, Japan and Middle East.
You are not required to enter stop-over countries if your stop-over is less than 48 hours.
Car hire excess insurance covers the amount you are liable to pay under your rental agreement if your vehicle is damaged, stolen or involved in an accident. You can pay extra with your rental company to reduce the excess however this can often double the cost of your car hire.
With excesses ranging from $2,000 - $8,000 depending on your vehicle, it's risky business not getting any cover at all. But don't fret, help is here! We have some nifty options that can save you money and reduce those hefty out of pocket expenses.
Travel Insurance & Car Hire Excess | Compare Rental Excess | Reduce with your Rental Company | Standalone Plans | Cover with your Credit Card
| Top Tips | FAQs
You may be aware that travel insurance can bail you out of a number of tricky scenarios including injury, illness, luggage theft, trip delay and more. But did you know that some policies will cover your car rental excess as well?
Most comprehensive travel insurance policies have a built-in feature on both domestic and international policies so if you are involved in an incident and your rental company charges you an excess, you can claim on your travel insurance to cover this.
In the event of an accident, usually, your rental company will charge your credit card with the excess amount and then you'd be reimbursed by your travel insurer. In some cases, your policy would cover the cost of repairing the car if that works out to be cheaper than the excess. In the event of a claim, you must provide a copy of the repair account and/or receipt showing the amount charged to your travel insurer.
You can choose to pay an extra daily fee with your rental company to reduce your excess however, this often turns your cheap car hire into a not-so-cheap and affordable rental. If you have forgotten to organise your rental excess insurance this can be a convenient option however be prepared to fork out an extra $25 to $40 a day.
By comparison, travel insurance rates are much cheaper on a daily basis and will cover you for a range of additional expenses which means more value for less money. Sounds like a no brainer to us!
You don't have to be going overseas on holiday to benefit from cheaper car hire excess options. Aussies and visitors to Australia can purchase standalone car hire excess cover.
These policies are designed specifically to cover car rental excess. They usually include circumstances that are excluded by the rental company and travel insurance policies such as damage to bumpers and trim, windscreen and tyres, single-vehicle accidents and hitting the poor wildlife crossing the road.
Of course, these purpose-built policies don't come with all the extra travel trimmings of a travel insurance policy such as overseas medical, luggage and cancellation so consider your needs carefully before making a decision.
If you have a premium or rewards credit card, you may automatically get cover for rental vehicle excess insurance. However, it’s important to note that credit card insurance generally isn’t as extensive as travel insurance or standalone policies and a number of terms and conditions usually apply.
As with all policies, it’s essential that you understand the conditions that come with your cover. You may find that you’re spending in excess of what you would pay for travel insurance or a standalone policy.
Say no to the rental car rip-offs! Kindly refuse the extra charges to 'reduce your rental car excess' at the hire car counter. Buying travel insurance is usually cheaper than paying to reduce your excess at the rental car counter and provides you with a wide range of added benefits such as medical cover, cancellation cover and more.
It’s important to note that rental excess included in travel insurance is not rental vehicle insurance. This is usually included in the daily price of your hire car, or you can often arrange such insurance with your hire car company. You are advised to secure separate insurance for any injuries or damages your use of a hire car may cause to other people and their property.
Keep in mind that if you do have an accident, you will often have to first pay the excess amount you are liable for and then submit a claim to your insurer for reimbursement.
You don't have to pay extra to reduce your excess as your policy covers the damage waiver fee you would be liable for.
Travel insurance policies mirror the agreement with the rental company so any exclusions also apply to your rental excess cover. Standalone policies often include cover for loss or damage to windscreens, roof, tyres and underbody of the rental vehicle.
This would depend on the details of your trip. If you only want cover for car hire excess it may be more cost-effective to take out a standalone policy. However, most travel insurance companies include rental vehicle excess cover for free so if you’re already taking out insurance for your trip this may be your best option.
Yes, you would still need to pay the excess selected on your travel insurance. However, you can pay to lower your excess to $100, or $0 with most policies. Either way, you’ll save yourself heaps if you were to accidentally damage your rental vehicle.
No, your policy only covers the rental vehicle excess you would be liable to pay.
You would need to check the definition of a rental vehicle with your insurer however, mostly it covers campervans, motorhomes, sedan, hatchback NOT motorbikes or scooters.
Yes, whoever will be driving the vehicle needs to be listed on your travel insurance policy to make sure they are covered.
The hire car company will usually deduct minor repair costs or any excess amount from your credit card. You would then seek remibursement with your insurer. Most insurers offer an easy online claim process via an online portal. You will need to supply supporting documentation such as invoices or receipts from the rental car company.
Most policies will cover up to $500 to return your rental vehicle to the nearest depot if you are unfit to drive. A medical adviser usually has to certify this in writing.
If the insurer requires you to disclose any pre-existing conditions, you still have to let them know even if you are taking out a policy just for your car hire.
As long as you are hiring a vehicle from a licensed rental company, you can take out travel insurance to cover the rental excess.
After completing her psychology degree, Harriet left the UK for her Australian adventure – rafting, paragliding, shark-diving and jumping out of planes – before settling down in Sydney. Harriet has Tier 2 General Insurance General Advice certification and has specialised in travel insurance for the last two years. A foodie who loves learning all about local cuisines, she likes giving customers top travel insurance tips and restaurant recommendations.
Loading Quotes...
Register
Don't you have an account?