Rental car insurance

Yes, some travel insurance policies can cover you for rental car excess insurance, but it doesn’t cover your rental car as such.

When you hire a car, the rental company will usually include a loss damage waiver (LDW) or collision damage waiver (CDW) in the price of the hire. This will generally cover the car if you get into an accident or cause damage to the car. While you won’t have to pay for the repair directly, the rental company will charge you an excess amount which can usually vary from $0 to $8,000. This is where travel insurance can help.

If your travel insurance policy includes car rental excess insurance, then your insurer will cover the excess amount charged by the rental company so that you don’t have to pay for it, as long as your limit is high enough.

• Cars. Sedans, hatchbacks, coupes, station wagons, SUVs.
• Four-wheel drives. 4×4 vehicles.
• Campervans and motorhomes. Usually up to 4.5 tonnes.
• Minibuses. Usually up to a 12-seater.

Make sure you read the PDS carefully to see if your vehicle type is automatically covered, as some insurers may require you to take out a separate policy for larger vehicles like campervans, motorhomes and minibuses.

Commercial vehicles of any kind will not be covered by a standard rental excess insurance policy.

The rental company’s basic level of cover will automatically set your liability in the event of damage to the vehicle at a certain level, typically between $3,000 to $4,000. This is the excess you will need to pay, but it can also be known by names such as collision damage waiver, loss damage waiver and damage liability fee.

If you want to reduce this excess, you can purchase cover through the rental agency or one of the other options.

For example, some insurance policies will only reduce your rental excess if your car is involved in an accident with another vehicle. This is called the accidental damage excess. However, many people are unaware that if they are involved in a single-vehicle accident, such as scraping the car on a wall or maybe hitting a possum, a separate excess will apply on top of the accidental damage excess. This second charge is the single-vehicle accident excess, and can end up adding another couple of thousand dollars to your overall bill.

Most hire car companies will not make you aware of the single vehicle accident excess when you take out cover. Read the fine print of any rental agreement before signing it to familiarise yourself with exactly how many excesses each policy contains, and in which situations they apply.

So what’s the difference between standalone car rental excess insurance and comprehensive travel insurance and which option is the best choice for you? Check out the comparison table below to help you decide.

If you’re looking for peace of mind and protection for a broad range of risks and events, travel insurance may very well be the best choice.

The process for lodging a claim will vary depending on the insurer, but you will usually need to follow a few simple steps:

1. Download and complete a claim form.
2. Provide copies of any supporting documentation requested by the insurer, such as police reports, repair invoices and copies of the rental agreement.
3. Submit your completed claim form and supporting documents by post or email.

Your claim will then be processed and paid as soon as possible. Please note that the benefit you receive may not cover admin and/or transaction fees charged by the rental company.