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Does travel insurance cover car hire excess?

It definitely can. We've researched brands on Finder and found which include car rental excess insurance for free.


Car hire excess can save you thousands if your rental car is stolen, damaged or involved in an accident while you're travelling. Save even more by buying your travel insurance with car rental excess cover included instead of having two separate policies.

Travel insurance with rental car excess cover

To help you narrow down your options, here are the most popular Finder brands for car rental excess from April-July 2019. All automatically cover car rental excess in their policies.

1Cover Budget Direct Australia Post Fast Cover CoverMore
Limit on international policies $5,000 $6,000 $3,000 Optional add-on $6,000
Limit on domestic policies $5,000 $4,000 $3,000 $5,000 $4,000
Option to increase limit?
Get quote Get quote Get quote Get quote Get quote

*Table last updated 18th July 2019

Check out a full list of our partner brands

What does 'car rental excess cover with travel insurance' include?

Travel insurance can cover you for car hire excess and can be found with most comprehensive travel insurance policies. With this, you can get cover you for:

  • Travel insurance car rental excess. Car rental excess is the amount you are charged by a rental company if your rental car is damaged, stolen or involved in a collision. Travel insurance policies offer cover for car rental excess charges, which can be upwards of $4,000. You can get overseas and domestic travel insurance rental car excess with most comprehensive policies.
  • Transportation of the vehicle back to the car rental depot. If you suffer an injury or illness during your journey, you may not be in a fit condition to drive your rental car to the nearest depot. When this happens, some insurers will cover the cost of returning the car to the nearest depot, as long as you can obtain written confirmation from your medical adviser that you are unable to drive.
  • Medical expenses if you get into an accident. Travel insurance provides cover for medical costs if you're injured in an accident overseas. If you crash your car and need ambulance transportation, medical treatment, hospital accommodation and even repatriation to Australia, your travel insurer will be able to cover the costs. You won't receive any cover if you break an exclusion on your policy, such as failing to follow the road rules in the country you're in, so make sure you're aware of the exclusions in your policy before you get behind the wheel.
  • Compare prices of international car rental excess cover

    If you want to compare prices, here's a table with our top selling brands for travel insurance with car rental excess cover. Prices are based on a 7 day trip to New Zealand for a 30 year old.

    1Cover (Comprehensive) Budget Direct

    (Comprehensive)

    Australia Post

    (Comprehensive)

    Fast Cover

    (Comprehensive)

    CoverMore (Premium)
    Limit on international policies $5,000 $6,000 $3,000 Optional add-on $6,000
    Price $44.27 $44.18 $53.00 $82.60 $64.00
    Get quote Get quote Get quote Get quote Get quote

    *Quote was made on 18th July 2019. Prices are indicative, get a quote for accurate pricing for your trip

    Compare prices of domestic car rental excess cover

    Here's a comparison of prices for travel insurance with car rental excess for a domestic trip. Prices are based on a 7 day trip for a 30 year old.

    1Cover (Domestic) Budget Direct

    (Domestic)

    Australia Post
    (Comprehensive)
    Fast Cover (Domestic Plus) CoverMore (Domestic)
    Limit on domestic policies $5,000 $4,000 $3,000 $5,000 $4,000
    Price $38.08 $35.81 $56.00 $39.50 $64.00
    Get quote Get quote Get quote Get quote Get quote

    *Quote was made on 18th July 2019. Prices are indicative, get a quote for accurate pricing for your trip

    Travel insurance car rental excess VS waiving my excess

    Before you sign your car rental agreement, car rental companies will offer the option to reduce your car rental excess charge for a daily fee. This is often referred to as an excess waiver or excess reduction option, and you will often be able to reduce the excess to zero if you are willing to pay the additional amount. While this may sound like an attractive option, paying a daily fee to reduce your excess can actually work out to be quite costly. A travel insurance policy that includes car rental excess cover is a much more cost-effective way to take out financial protection as shown below.

    Other car hire concerns

    Am I covered for damages and repairs to the car?car-damage

    Travel insurance does not usually cover you for the actual damage you cause to a car or the cost of getting that damage repaired. These costs can be covered by physical damage insurance provided by the rental company. This insurance is commonly known as the loss damage waiver or the collision damage waiver, and it’s usually automatically included in the basic cover provided by a rental company. Many travel insurers will only provide cover if your rental agreement includes some form of motor vehicle insurance.

    Am I covered if I injure someone else or cause damage to their car?

    Travel insurance policies typically include personal liability cover, but they do not offer protection if you injure someone else or damage someone else’s property while driving a rental car. This cover can be obtained through the compulsory liability motor vehicle insurance available from the rental company. In fact, most travel insurers include a requirement for your car rental agreement to have third-party liability motor insurance.

    Am I covered for medical expenses if I get into an accident?

    Travel insurance provides cover for medical costs if you’re injured in an accident overseas. If you crash your car and need ambulance transportation, medical treatment, hospital accommodation and even repatriation to Australia, your travel insurer will be able to cover the costs. You won’t receive any cover if you break an exclusion on your policy, such as failing to follow the road rules in the country you’re in, so make sure you’re aware of the exclusions in your policy before you get behind the wheel.

    Conditions you must adhere to in order to have car rental excess cover

    In order to be eligible for travel insurance with rental car excess cover, you will need to make sure you have the following:

    • Basic motor insurance. The car rental company must include CTP (liability) and physical damage cover for the car itself. Most insurers will require both types of cover to be included in your car rental agreement in order for you to qualify for car rental excess cover.
    • Licensed rental company. The vehicle must be rented from a licensed rental company or agency.
      Rental agreement compliance. You must comply with all of the rental company's requirements as outlined in the rental agreement.
    • Vehicle limits. There may be specific limits regarding the size of the vehicle's engine or the number of people it can seat. For example, you may only be covered if the car has no more than nine seats.
      Driving limits. There may be restrictions on where you can drive the vehicle. For example, you may be required to drive only on paved roads.
    • Time limit. Some insurers impose a maximum time limit on the rental contract, such as 15 days.
      Insured drivers. The car must only be driven by insured persons listed on your travel insurance policy and the car rental contract.
    • Provide documentation in event the event of a claim. You may need to provide copies of supporting documents in order for your car rental excess claim to be approved, such as your rental vehicle agreement, an incident account, an itemised repair bill and written notice from the rental company about the excess you must pay.
    • What isn't covered by rental car excess cover

      Although cover differs between insurers, your car rental excess claim will usually not be paid if:

      • You fail to comply with the terms of your rental agreement
      • You rent certain excluded vehicles such as commercial vehicles, buses, motorbikes, limousines, or expensive or exotic cars
      • You failed to take out collision damage waiver and third-party insurance cover through the rental company
      • Your claim is for damage sustained on a road that is not cement or tarmac
      • Your claim is for losses sustained because you were driving under the influence of alcohol or drugs, or because you were driving recklessly
      • Your claim involves an unauthorised driver not listed on the rental agreement
      • Your claim is for theft and you cannot produce the keys to the vehicle due to your own negligence
      • Your claim is for theft or damage and your vehicle has been left unlocked or unsecured
      • Your claim is for wear and tear or mechanical or electrical breakdown or failure
      • Your claim is for blowouts or tyre damage, unless caused by fire, malicious damage or vandalism
      • Your claims is for intentional damage by you
      • Your claims is for a loss resulting from any sort of illegal activity
      • Your claims involves the use of your rental vehicle to carry passengers or property for profit
      • You were driving the vehicle without a licence

      Full list of our partner brands

      We have researched a list of our 20+ partners and found these brands automatically include car rental excess insurance in their policies. If you're hiring a luxury car or just need a higher excess limit in general, consider choosing an option that allows you to increase your excess for an extra premium.

      Brand Rental car excess limit Conditions Option to increase cover?
      1cover logo

      1Cover

      International: $5,000

      Domestic: $5,000

      This policy automatically provides cover for all plans except for Medical only and Essentials. You can increase your benefit level and additional premiums may apply.
      Get quote
      Picture not described

      Australia Post

      International: $3,000

      Domestic: $3,000

      You can increase this amount by paying an additional premium.

      Car rental excess insurance is not available on the International Basic plan.

      Get quote
      Budget Direct Logo

      Budget Direct

      International: $6,000

      Domestic: $4,000

      You are covered for the agreed stated amount on your policy that you are liable to pay as a result of damage or theft to a hired vehicle.
      Get quote
      Picture not described

      Columbus Direct

      International: $4,000

      Domestic: $4,000

      You are covered for the agreed stated amount on your policy that you are liable to pay as a result of damage or theft to a rental vehicle you are in control of.
      Get quote
      Picture not described

      CoverMore

      International: $6,000

      Domestic: $4,000

      Cover is automatically included on the premium and domestic plan. An additional premium can be paid to increase the limit. The inbound plan does not automatically include cover but it is available as an optional extra. Car rental excess insurance is not available with the medical-only plan.
      Get quote
      Fastcover

      Fast Cover

      International: Optional up to $8,000

      Domestic: $5,000

      Automatically included on domestic policies only. Available as an optional upgrade on international policies except basic.
      Get quote
      Picture not describedHoliday Rescue Travel Insurance

      Holiday Rescue

      International: $5,000

      Domestic: $5,000

      Holiday Rescue will pay rental vehicle insurance excess or the cost of repairing the rental vehicle if the rental vehicle is damaged or stolen due to an unexpected event.
      Get quote
      Insureandgo logo

      InsureandGo

      International: $4,000

      Domestic: Up to $7,500

      Rental car excess waiver is available if you choose Silver or Gold cover.
      Get quote
      Insure4less Icon

      Insure4less

      International: $3,000

      Domestic: $3,000

      You are covered for the agreed stated amount on your policy that you are liable to pay as a result of damage or theft to a hired vehicle.
      Get quote
      Picture not described

      Medibank

      International: $4,000

      Domestic:$3,000

      You can increase your cover up to $3,500 by paying an additional premium.

      There is no Rental Car insurance excess cover on the International Medical Only Plan.

      Get quote
      Picture not describedRACV Business Insurance

      RACV

      International: $8,000

      Domestic: $5,000

      Get cover for up to $8,000 on international policies except the travel care plan. RACV also offer a Car Excess only plan.
      Get quote
      Skiinsurance

      Skiinsurance.com.au

      International: $5,000

      Domestic: $5,000

      You will be covered for any excess you are liable to pay in the event of an accident, damaged or stolen involving the rental vehicle.
      Get quote
      Picture not described

      Tick

      International: $4,000

      Domestic: $4,000

      Available for Standard or Top Cover only.
      Get quote
      Picture not described

      Travel Insurance Saver

      International: $5,000

      Domestic: $5,000

      You can increase your excess every $500 on all policies except for, Bare Essentials Travel Plan, Australian Cancellation and Additional Expenses Travel Plan, where no cover is available.
      Get quote
      Picture not described

      Travel Insuranz

      International: $4,000

      Domestic: $4,000

      You are covered for the agreed stated amount on your policy that you are liable to pay as a result of damage or theft to a hired vehicle.
      Get quote
      world2cover icon

      World2Cover

      International: $3,000

      Domestic: $3,000

      You choose your desired excess amount and pay additional premiums.
      Get quote
      Picture not describedzoom logo

      Zoom

      International: $5,000

      Domestic: $5,000

      You are covered for the agreed stated amount on your policy that you are liable to pay as a result of damage or theft to a hired vehicle.
      Get quote

      Note: Information last obtained on July 2019 and is subject to change. Make sure you understand the general conditions surrounding car rental excess cover for each policy. The cover amount is for an International trip (comprehensive policy )and domestic trip per single person. For a comprehensive list of the conditions of each policy, please read the product disclosure statement of the policy.

      Take me back to the popular brands

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