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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Richard Whitten is Finder’s Senior Money Editor, with over eight years of experience in home loans, property, credit cards and personal finance. His insights appear in top media outlets like Yahoo Finance, Money Magazine, and the Herald Sun, and he frequently offers expert commentary on television and radio, helping Australians navigate mortgages and property ownership. Richard started his career in education and textbook publishing in South Korea. He holds multiple industry certifications, including a Certificate IV in Mortgage Broking (RG 206) and Tier 1 and Tier 2 certifications (RG 146), as well as a Bachelor of Education from the University of Sydney and a Graduate Certificate in Communications from Deakin University.
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Hi I would like a card that ticks the following boxes:
– Reward points (preferably velocity)
– international + domestic travel insurance (includes car rental excess)
– I will also be doing a Balance transfer
Finder
MayDecember 12, 2017Finder
Hi Bonnie,
Thank you for your inquiry.
The frequent flyer credit cards that earn Velocity points are listed here. As not all cards have the same benefits, you may need to go over each card featured on that page and see if they have complimentary travel insurance and Balance transfer features. Please also note that domestic travel insurance are not usually covered under the travel insurance benefit. The car rental excess are typically included in the overseas complimentary travel insurance though.
Hope this helps.
Cheers,
May
JohnMay 25, 2017
I am a platinum ANZ credit card holder and I want to hire a car in NZ do I get the same access cover as I do in Australia?
Finder
HaroldMay 29, 2017Finder
Hi John,
ANZ Platinum credit cardholders are covered under QBE complimentary overseas medical and travel insurance. There’s comprehensive cover for a range of events, including an unlimited benefit payable for overseas medical and dental. If you already have an ANZ Platinum credit card, you’re eligible for the insurance when you hold a return ticket to Australia and have purchased at least $250 of your prepaid travel expenses using the ANZ Platinum credit card. See the insurance terms and conditions to confirm what you’re covered by.
I hope this information has helped.
Cheers,
Harold
AlokaFebruary 5, 2017
Hi I’m about to rent a car using my ANZ platinum card. Do I need to purchase additional insurance from the Rent a car company ?
If event of accident without additional insurance what does the car cover?
Thanks
Finder
MauriceFebruary 6, 2017Finder
Hi Aloka,
While it’s not compulsory to purchase rental vehicle excess insurance from a car rental company (if you already have cover with your credit card) you might need to purchase damage insurance from the rental car company. Car rental excess insurance included in your credit card covers the excess payable on damage insurance.
It’s a good idea to clarify with your rental company what type of insurance you are buying from them.
According to the product disclosure statement (PDS) of ANZ, the maximum amount you are covered for is $2,400 in rental excess cover.
I hope this helps,
Maurice
JpJJuly 22, 2016
I am the cardholder of an HSBC Australia Visa Platinum card. If I hire a car in Australia and have an accident, am I automatically covered for rental vehicle insurance excess? Many thanks.
Finder
MayAugust 2, 2016Finder
Hi JpJ,
Thanks for your inquiry.
As the complimentary travel insurance is applicable for international trips, I’m afraid that the rental vehicle excess cover is only applicable for trips overseas as well. Please feel free to check our HSBC credit card guide for more information about the HSBC complimentary travel insurance cover.
Cheers,
May
PamDecember 24, 2015
I am the holder of an anz visa platinum card. When I hire a rent a car in Australia, am I automatically covered for accidents and to what extent.
Finder
SallyDecember 24, 2015Finder
Hi Pam,
Thanks for your question. Yes, the ANZ Visa Platinum Card does offer cover for domestic car rentals in Australia. You’ll need to meet QBE and ANZ’s eligibility requirements before you can access the rental cover. I’ve emailed you a copy of the insurance policy so you can confirm that you meet those requirements.
QBE will reimburse you for the amount of any collision excess that you have paid under any vehicle rental agreement that you enter into with a car rental company to hire a vehicle registered in Australia and its offshore territories, where:
• you are the hirer, or
• you are a joint hirer and you were driving the hire car when the accident occurred.
The process for how you can make a claim is also included in the document I have emailed to you.
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Hi I would like a card that ticks the following boxes:
– Reward points (preferably velocity)
– international + domestic travel insurance (includes car rental excess)
– I will also be doing a Balance transfer
Hi Bonnie,
Thank you for your inquiry.
The frequent flyer credit cards that earn Velocity points are listed here. As not all cards have the same benefits, you may need to go over each card featured on that page and see if they have complimentary travel insurance and Balance transfer features. Please also note that domestic travel insurance are not usually covered under the travel insurance benefit. The car rental excess are typically included in the overseas complimentary travel insurance though.
Hope this helps.
Cheers,
May
I am a platinum ANZ credit card holder and I want to hire a car in NZ do I get the same access cover as I do in Australia?
Hi John,
ANZ Platinum credit cardholders are covered under QBE complimentary overseas medical and travel insurance. There’s comprehensive cover for a range of events, including an unlimited benefit payable for overseas medical and dental. If you already have an ANZ Platinum credit card, you’re eligible for the insurance when you hold a return ticket to Australia and have purchased at least $250 of your prepaid travel expenses using the ANZ Platinum credit card. See the insurance terms and conditions to confirm what you’re covered by.
I hope this information has helped.
Cheers,
Harold
Hi I’m about to rent a car using my ANZ platinum card. Do I need to purchase additional insurance from the Rent a car company ?
If event of accident without additional insurance what does the car cover?
Thanks
Hi Aloka,
While it’s not compulsory to purchase rental vehicle excess insurance from a car rental company (if you already have cover with your credit card) you might need to purchase damage insurance from the rental car company. Car rental excess insurance included in your credit card covers the excess payable on damage insurance.
It’s a good idea to clarify with your rental company what type of insurance you are buying from them.
According to the product disclosure statement (PDS) of ANZ, the maximum amount you are covered for is $2,400 in rental excess cover.
I hope this helps,
Maurice
I am the cardholder of an HSBC Australia Visa Platinum card. If I hire a car in Australia and have an accident, am I automatically covered for rental vehicle insurance excess? Many thanks.
Hi JpJ,
Thanks for your inquiry.
As the complimentary travel insurance is applicable for international trips, I’m afraid that the rental vehicle excess cover is only applicable for trips overseas as well. Please feel free to check our HSBC credit card guide for more information about the HSBC complimentary travel insurance cover.
Cheers,
May
I am the holder of an anz visa platinum card. When I hire a rent a car in Australia, am I automatically covered for accidents and to what extent.
Hi Pam,
Thanks for your question. Yes, the ANZ Visa Platinum Card does offer cover for domestic car rentals in Australia. You’ll need to meet QBE and ANZ’s eligibility requirements before you can access the rental cover. I’ve emailed you a copy of the insurance policy so you can confirm that you meet those requirements.
QBE will reimburse you for the amount of any collision excess that you have paid under any vehicle rental agreement that you enter into with a car rental company to hire a vehicle registered in Australia and its offshore territories, where:
• you are the hirer, or
• you are a joint hirer and you were driving the hire car when the accident occurred.
The process for how you can make a claim is also included in the document I have emailed to you.
I hope this has helped.
Cheers,
Sally