Is car hire excess insurance worth it?
Yes, here are 4 reasons to consider car rental excess insurance
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Most car rental companies will include some sort of basic insurance within your hire rate known as a Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW). This basic insurance is limited and can still put you at risk of huge out-of-pocket expenses in case something goes wrong with your rental.
Still need convincing about car rental excess insurance? Our guide will explain the 4 main reasons why car rental excess insurance is worth it.
1. Excess charges are way higher than you expect
When you hire a car, the rental company will usually let you know how much you'll be liable to pay if the car is damaged or stolen.
Here are the lowest excesses charged by 5 main rental companies in Australia.
- Avis: $4,608
- Thrifty: $4,000
- Hertz: $4,800
- Europcar: $5,500
- Budget: $4,608
*Excess charges were last updated in November 2019.
So essentially, if your rental car is damaged or stolen, you could be paying no less than $4,000 to cover the loss. This excess amount can also increase further if you hire a speciality or luxury car. Considering rental car excess insurance starts from $2.83 a day, it seems like a no-brainer.
2. You can't predict the future
An unfortunate truth is that you'll be held liable for any damages caused to the car while under your care, whether it was your fault or not.
While you might consider yourself a pretty nifty driver, you can't control if a hail storm hits, if a kangaroo decides to run out onto the road, or if someone decides to steal the car entirely.
Getting rental car insurance might be an added cost, but in return, you'll have peace-of-mind knowing you won't have to pay out those hefty excess charges.
3. You actually have loads of options for all budgets
Getting car hire excess insurance can be quick and easy if you want it to be. It's available;
- As a standalone product. Finder has partnerships with some major players in the industry, check out the comparison at the bottom of the page to find a brand that suits your trip.
- As part of travel insurance. If you've taken out travel insurance for your trip, check your policy to see if this feature is already included. It's always great to save money, just make sure you understand the coverage they offer.
- As part of credit card travel insurance. If you have an eligible credit card, you might have car rental excess cover as part of your benefits. Always check to make sure it gives you the right cover since credit card insurance is known to be limited.
- At pick up. If you've completely forgotten to get cover, you can get insured when you pick up the car with the rental company. Just be warned, if you do this, it's for convenience since the prices are known to be more than double the average costs of a standalone policy.
4. It's more affordable than you think
Prices can start from just $2.83 a day if you're buying a standalone policy, or it can already be included in your travel insurance, or even with your credit card travel insurance.
We even have some coupons that can help save a few dollars.
Compare car rental insurance and get covered
|Name||International or domestic cover||Eligible driver age||Features||Starting price (per day)||Apply|
|Both||19–99 years||$9.48 ($0 excess)||Get quote|
|Both||21–75 years||$9.30 ($0 excess)||Get quote|
|Both||21–71 years||$5.68 (with a $300 excess payable)||Get quote|
*Always read through the product disclosure statement (PDS) to make sure the product is suitable for you.
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