Many Australian credit cards offer car rental excess insurance for international and domestic trips. This could save you money if you damage the rental car.
Car rental excess insurance covers your excess costs if your hire car is stolen or damaged in an accident.
Some credit cards offer this as a complimentary insurance policy.
This can work out cheaper than paying for a standalone rental excess insurance policy.
What is credit card car rental excess insurance?
Complimentary credit card car rental excess insurance can help cover costs if a rental vehicle is damaged or stolen and you need to pay an excess amount to the car hire company.
Excess is the amount you pay when making an insurance claim. You pay a pre-defined excess and your insurer covers the rest.
You can also get a separate rental car excess insurance policy that covers this excess cost. And many credit cards offer this as one of their complimentary insurance covers.
Example: using your credit card's rental excess insurance to save money
You hire a car while travelling internationally. You book the rental car with your credit card.
While driving, you have an accident with the car and requires $3,000 in repairs.
Your credit card has a complimentary car rental excess policy that covers you for up to $5,000 in excess. Under this policy you have to pay a $100 excess and the insurer covers the rest.
What credit cards offer car rental insurance?
Credit cards with complimentary insurance may include some form of car rental insurance. There are 2 main options:
Car rental excess insurance in Australia
A car rental excess benefit as part of an international travel insurance policy
As with any type of insurance, the cover and details vary. So it's important to check the insurance policy document for any card (or cards) you're looking at.
How much does car rental excess insurance cost to buy separately?
Car rental companies typically offer excess insurance (or excess reductions) for about $20 to $30 per day, per car. It can go above $50 per day if you want a $0 excess.
There are also separate car rental excess insurance policies you can buy from as little as $10 per day. The cost depends on factors including the insurance provider, type of car and payable excess.
Based on these details, if you got complimentary car rental excess insurance through a credit card and hired a car for 7 days, you could save between $70 and $350 compared to paying for a car rental excess insurance policy.
Australia: Rental vehicle excess insurance in Australia up to a maximum of $5,000 if you use an eligible ANZ credit card to pay for the vehicle hire. A $100 excess applies.
Australia: Rental vehicle excess insurance in Australia up to $10,000 (Level 1 cards) or up to $5,000 (Level 2 cards). A $100 excess applies per claim
Overseas: Rental vehicle excess cover up to a maximum of $10,000 (Level 1 cards) or up to $5,000 (Level 2 cards) is offered for overseas rentals. A $600 excess applies.
Overseas: Offers overseas rental vehicle excess insurance of up to $2,250. You may also be given the option of increasing the value of this cover for specific trips.
Australia: Rental vehicle excess insurance cover up to $10,000 (Level 1 cards) or $5,000 (Level 2 cards) for eligible rentals in Australia. A $100 excess applies.
Overseas: Rental vehicle excess cover up to $10,000 (Level 1 cards) or $5,000 (Level 2 cards) is also a benefit in the NAB complimentary international travel insurance policy for eligible credit cards. A $600 excess applies.
Australia: Rental vehicle excess insurance in Australia up to $3,000. A $500 excess (Qantas Money Everyday and Qantas Money Platinum) or $250 excess (Qantas Money Titanium) applies per claim.
Overseas: Offers rental vehicle excess cover up to a maximum of $4,000 (Qantas Money Everyday and Qantas Money Platinum) or up to $5,000 (Qantas Money Titanium) as part of the international travel insurance policy. A $500 excess (Qantas Money Everyday and Qantas Money Platinum) or $250 excess (Qantas Money Titanium) applies per claim.
Pros and cons of credit card car rental excess insurance
Pros
Peace of mind. Car rental excess insurance means you're not on the hook for potentially thousands of dollars as it reduces the excess payable if you have a covered accident.
Saving money. Instead of paying the rental company for additional car rental excess insurance, get it through your credit card at no extra cost. This saves you the cost of that extra premium.
Cons
Lots of terms and conditions. Each policy has different requirements to activate the cover as well as what type of accident will be covered.
You may still pay excess. Many car rental excess policies charge an excess of between $200 and $500 per claim. While that's better than the thousands of dollars you could potentially pay without excess insurance, it's still a cost to consider.
Things to watch out for
If you're thinking of getting a credit card that offers complimentary car rental excess cover – or if your existing card offers this cover – make sure you keep the following details in mind before hiring a rental vehicle.
Eligibility. Most credit cards only provide this cover if you have used the card to pay for the rental vehicle or for the entire trip. Make sure you check these details in the insurance policy booklet before assuming you're covered.
Coverage limitations. While complimentary car rental excess cover typically applies for vehicle damage or theft, exclusions could apply for damage to the tyres, windscreen or underbody of the car. Most policies also exclude claims that relate to off-road driving.
Location requirements. Credit card car rental insurance could cover you for domestic trips, overseas trips or both, but there may be restrictions related to location or distance travelled.
Other card costs. If you're looking for a new credit card that offers car rental excess insurance, make sure you also consider the card's other costs (including the annual fee), interest rates and any overseas transaction fees that may apply.
How do I use my credit card's car rental excess insurance?
To activate your rental car insurance cover, you usually need to do the following:
Use your eligible credit card to pay for the rental car or other travel spending.
Follow the policy's terms and conditions, such as not driving while under the influence of alcohol.
How to make a claim
The process can be slightly different depending on the insurance provider, so it's important to check the insurance policy document for full details. But as a general guide, you'll need to take the following steps:
Contact the insurance provider As soon as you think you'll need to make a claim, let the insurance provider know. The contact details will be in your credit card complimentary insurance policy booklet.
Fill in a claim form Depending on the insurer, you may be able to submit a claim online, over the phone or through a printed form.
Include supporting documents and submit your application This could include the rental vehicle hire agreement, any relevant police reports, photo evidence or receipts that relate to your claim. In general, the more details you can include, the better.
Frequently asked questions
This type of cover is usually optional. But excess payments to a car rental company can be as much as $8,000 without this cover, compared to around $0 to $400 with cover.
It usually covers the excess amount you're liable for in case of damage or theft, up to a certain limit.
Yes, exclusions may include unapproved drivers, off-road driving, or not adhering to rental terms.
You'll need to provide the rental agreement, incident report, and proof of payment using your credit card.
Most policies cover rentals worldwide, but check your card's terms for specific regions or countries.
Yes, it is recommended to get car hire insurance to avoid high excess fees in case of damage or theft. You may already have some cover through your credit card, if you pay for your hire car using a card that includes complimentary travel insurance with hire car coverage.
Loss Damage Waiver (LDW) reduces liability for damages and is a good option unless you already have rental coverage.
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We have booked a hire car in the UK for 20 days. We have had gold card with ANZ for many years. What cover will this card give us with our rental.
Finder
ShirleyJune 24, 2014Finder
Hi Rex and Rosly,
Thanks for your question.
ANZ Car Rental Cover covers the ANZ credit card account holder who has paid the relevant cover fee. Once you’ve become an ANZ credit card customer, you can obtain ANZ Car Rental Cover for an annual fee of just $24 (inc. GST) at the time of writing.
Cheers,
Shirley
TrentDecember 14, 2016
Hi, does this type of cover only cover the cardholder or their partner (who would be a nominated driver) as well? ie if it was my card but say my partner was driving at the time?
Finder
MayDecember 14, 2016Finder
Hi Trent,
Thanks for your question and for contacting finder.com.au – a financial comparison website and general information service designed to help consumers make better decisions.
Usually, with the complimentary travel insurance attached to a credit card, the cover extends to your immediate family (if they also meet the eligibility conditions of the insurance), so the rental vehicle cover will also be extended to them. But, depending on the conditions surrounding the car rental insurance of your policy and provided you meet them, your partner may or not be covered. I suggest that you contact your credit card’s provider of complimentary travel insurance to be sure.
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We have booked a hire car in the UK for 20 days. We have had gold card with ANZ for many years. What cover will this card give us with our rental.
Hi Rex and Rosly,
Thanks for your question.
ANZ Car Rental Cover covers the ANZ credit card account holder who has paid the relevant cover fee. Once you’ve become an ANZ credit card customer, you can obtain ANZ Car Rental Cover for an annual fee of just $24 (inc. GST) at the time of writing.
Cheers,
Shirley
Hi, does this type of cover only cover the cardholder or their partner (who would be a nominated driver) as well? ie if it was my card but say my partner was driving at the time?
Hi Trent,
Thanks for your question and for contacting finder.com.au – a financial comparison website and general information service designed to help consumers make better decisions.
Usually, with the complimentary travel insurance attached to a credit card, the cover extends to your immediate family (if they also meet the eligibility conditions of the insurance), so the rental vehicle cover will also be extended to them. But, depending on the conditions surrounding the car rental insurance of your policy and provided you meet them, your partner may or not be covered. I suggest that you contact your credit card’s provider of complimentary travel insurance to be sure.
Cheers,
May