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.
|Insurer||Underwriter||Rental Excess Amount||Option to increase? (Additional charges may apply)||Distance Restrictions from your home||Buy Now|
|1Cover||Certain underwriters at Lloyd's||$5,000||$8,000||100km|
|American Express||Chubb Insurance Australia Limited||$3,000 (optional add-on)||-||100km|
|Budget Direct||Auto & General Services Pty Ltd||$4,000 (domestic)
|Columbus Direct||Certain underwriters at Lloyd's||$4,000 (standard) $5,000 (premier)||-||500km|
|Downunder||Certain underwriters at Lloyd's||$3,000 (domestic) optional for international||$6,000||50km|
|Fast Cover||Hollard Insurance Company Pty Ltd||$5,000 (domestic) optional for international||$8,000||200km|
|InsureandGo||Mitsui Sumitomo Insurance Company Limited||$7,500 (gold) $4,000 (silver)||-||No km restriction, however, you're only covered if your rental is less than 15 days. More terms apply.|
Certain underwriters at Lloyd's
|$1,500 (excel) $3,000 (excel plus)||-||250km|
|iTrek||Certain underwriters at Lloyd's||$4,000 (long-term cover) $3,000 (comprehensive)||$8,000||250km|
|Simply Travel Insurance||Certain underwriters at Lloyd's||$6,000||-||50km|
|Mitsui Sumitomo Insurance Company Limited||$2,000 (standard) $4,000 (top)||-||No km restriction, however, you're only covered if your rental is less than 15 days. More terms apply.|
|Travel Insurance Saver||Pacific International Insurance||$2,000 (essentials) $5,000 (comprehensive)||$10,000||200km|
Travel With Kit
|Certain underwriters at Lloyd's||$5,000||-||-|
|Worldcare||Allianz Australia Insurance Limited||$3,000||$6,000||250km|
|Virgin Money||Allianz Australia Insurance Limited||$2,000
|Zoom Travel Insurance||Certain underwriters at Lloyd's||$5,000 (domestic)
optional for international
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.
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.