Rental car excess insurance is still available for anyone who needs to hire a car. You may need to rent a car if:
Due to ongoing uncertainty, some insurers are implementing more flexible cancellation policies.
Car rental excess insurance is a type of insurance policy that will cover the excess charged by rental companies if the car is damaged or stolen.
That's helpful because it reduces your out-of-pocket expenses. These excess amounts can sometimes be as much as $8,000. So instead of risking thousands of dollars, get rental car insurance and pay as little as $2.83 per day.
| Name | International or domestic cover | Eligible driver age | Features | Starting price (per day) | Apply |
|---|---|---|---|---|---|
 | Both | 19–99 years |
| 7.92 ($0 excess) | Get quote |
 | Both | 21–75 years |
| $9.29 ($0 excess) | Get quote |
*Prices are based on a 15-day hire in Australia, as of April 2024. Benefits vary from brand to brand. Always read through the product disclosure statement (PDS) to make sure the product is suitable for you.
It's affordableGetting standalone cover is usually much cheaper than cover purchased through a rental car company. On average, car rental excess insurance is three times cheaper than cover from the rental car companies.
Windscreens, tyres, roof and underbody can be includedBrands like Rentalcover.com and Car Hire Excess cover damage to the above even if it's excluded from your rental agreement. This is a special feature of these brands.
Get other helpful inclusionsSome brands will also include cover for your luggage and personal effects, and returning your vehicle to the correct location if you get sick or injured and can't return it yourself.
Covers all sorts of vehiclesSedans, hatchbacks, SUVs and more – most policies cover an extensive range of vehicles as long as they weigh less than 4.5 tonnes.
Domestic and international policies availableRegardless of whether you're travelling within Australia or overseas, there are standalone car rental excess policies available to suit your needs.
For some perspective, here are the minimum excesses charged by major rental companies in Australia. These charges are based on standard 2WD vehicles, that means that the excess amount can increase if you're renting a more expensive vehicle. If you decide not to take out any type of rental car excess cover, you risk having to pay these amounts if the rental car is damaged or stolen.
In the diagram below, we've compared the price of a policy from Rentalcover.com (in blue) against the price of purchasing cover through a car hire company (in red). You can see a significant difference in price with Hertz being almost five times more expensive than Rentalcover.com. Save money by buying a standalone policy instead of getting cover from a rental company.
Another consideration is that some of these rental companies may only offer an "excess reduction" which lessens your out-of-pocket expenses but doesn't always make it zero.
*Prices are based on a 15-day hire in Australia as of September 2019.
With this in mind, make sure to check the terms and conditions of whichever cover option you choose to work out when you will and will not be covered.
What to do if you have an accident in a rental car and how to protect yourself in the future.
Does rental excess insurance cover any damage I may accidentally do to another vehicle?
Hi John, rental excess insurance usually does not cover you for damage to another vehicle or if the accident results in injuries. However it depends on the specific clauses and coverage in your policy.
I am looking at hiring a rental car for a trip within Australia from one of the major rental companies, All have ‘CDW’ with an excess. Do you know if the CDW insurance on the hire car also covers third party property and vehicle damage caused by an accident when the driver of the hire car was found to be technically at fault.
Hi Stuart,
Thanks for reaching out to us at Finder!
Inclusions of your Collision Damage Waiver (CDW) will depend on which rental company you hire the car from, they’re not all the same. So just make sure you read the fine print when you’re hiring. Most CDW’s will cover third-party damage but be careful when it comes to damage when you’re at fault.
If you’re trying to reduce your financial risk when hiring a car, you might also want to consider taking out rental car excess insurance to avoid more out-of-pocket expenses.
I hope this helps.
Kind regards,
Jessica
Hello, this week I hired a hitop campervan for the first time. I hired it on the Saturday intending to leave early morning Sunday. I unthinkingly drive it into an underground carpark which damaged the top. I did all the right things and took it back in the morning. They didn’t have another vehicle I could use and said the manager would contact me on Monday. We hired from another company and went on our trip. We didn’t hear from the manager until Thursday despite calls to them every day, he was always unavailable. I had the top insurance, no excess and covered overhead damage. But no where in their terms can I see anything about refunding us if they can’t supply us with another vehicle. The insurance covers for loss of use. No where did I sign anything that states I wouldn’t be entitled to a refund if amaccident iccurs and I can’t have another vehicle. . Should I be entitled to all or some of the fees paid? Cheers Shan
Hi Shan,
Thanks for getting in contact with us at Finder!
Sorry to hear about the rough start to your trip. This page is about car rental excess insurance which typically only covers the excess amount charged by rental companies if damage is caused to the rental vehicle.
You might be entitled to your expenses if you have any other insurance like travel insurance or maybe even the insurance offered by the rental company. It sounds like you might be able to claim under “Additional expenses”. I would still give them a call directly, explain the situation and ask if there is any benefit under your policy.
I hope this helps and that you enjoy the rest of your trip.
Kind regards,
Jessica
I am Hong Kong resident, will travel to Australia, would like to rent a car , may I know can I buy this car excess insurance?
Hi Hong,
Thanks for reaching out to us at Finder!
As an overseas visitor, you are eligible for car rental insurance in Australia provided you have the right driving permits and stick to the rental agreement of your car hire.
I hope you found this helpful.
Kind regards,
Jessica
I have booked a rental car in WA and am looking for independent excess insurance,
I can find plenty of information that covers the rental vehicle but very little about third party property, as in having and accident that I am at fault. Do any of theses insurances including over the counter ones, cover the other vehicle?
Hi Eric,
Thank you for leaving a question.
You are correct – the page that you are checking is correct when you are ready to compare options for car rental excess insurance. You may refer to our page that compares property damage liability coverage policies and learn more about your options. On the page, you may read more about it and also compare companies that offer such coverage.
Please make sure to check eligibility requirements and T&C prior to applying.
Hope this helps.
Cheers,
Val