Is car hire excess insurance worth it?

Yes, here are 4 reasons to consider car rental excess insurance

Surf van

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.

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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.

I'm convinced, let's compare

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.

Rental Cover Deals Rental Cover Deals

30% off RentalCover.com policies

Available if you're a senior, student or part of the military. You’ll need to send RentalCover.com a copy of the appropriate I.D as proof of eligibility.

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Tripcover Deals Tripcover Deals

5% off your car rental excess policy

Get 5% off your next policy with Tripcover by using your frequent flyer number when you take out car rental excess insurance cover.

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Compare car rental insurance and get covered

Name International or domestic cover Eligible driver age Features Starting price (per day) Apply
Rental cover logo

Rentalcover.com

Both 19–75 years
  • Complete vehicle cover for up to $100,000 in damages
  • Can be used with any rental car company worldwide
  • 30% discount for seniors, students and those in the military
  • No further excess payable
$9.48 Get quote
Picture not described

Car hire excess

Both 21–71 years
  • Cover from $4,000 to $8,000
  • Additional cover for damage to windscreens, roof, tyres and underbody
  • Underwritten by Lloyds
  • No further excess payable
$9.30 Get quote
Picture not describedTripcover car excess insurance

Tripcover

Both 21–71 years
  • Cover from $4,000 to $8,000
  • Underwritten by Allianz
  • Excess options: Nil or $300
$5.68 (with a $300 excess payable) Get quote
Picture not describedAmerican Express logo

American Express

Both Up to 79 years
  • Cover up to $3,000
  • Underwritten by Chubb
  • Excess options: $100, $200 and $500
$2.83 (with a $100 excess payable) Get quote

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