Does travel insurance cover car hire excess?

Yes, it definitely can. Check out travel insurance with car hire excess cover automatically included.

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Here are some policies with car hire excess cover.

We’ve compiled a list of travel insurance companies that offer different levels of car hire excess insurance as part of their travel insurance policies. If you get this cover as part of your travel insurance, you won’t need to buy it from the rental car company (psst, this way is usually cheaper).

Data indicated here is updated regularly
Name Product Overseas Medical Expenses Cancellation and amendment fees Theft or damage to lugagge COVID-19 expenses Standard excess
Southern Cross Domestic Travel Insurance
  • No
  • Unlimited
  • $15,000
$100
CoverMore Domestic Single Trip Travel Insurance
  • No
  • $10,000
  • $3,000
Some cover
$250
CoverMore International Premium Single Trip Travel Insurance
  • Unlimited
  • Cover chosen
  • $15,000
Some cover
$250
Fastcover Domestic Plus Travel Insurance
  • No
  • Unlimited
  • $7,500
$200
Fastcover International Comprehensive Travel Insurance
  • Unlimited
  • Unlimited
  • $15,000
$200
World2cover Domestic Travel Insurance
  • No
  • $25,000
  • $7,500
$100
World2cover International Top Cover Travel Insurance
  • Unlimited
  • Unlimited
  • $15,000
$100
American Express Domestic Travel Insurance
  • No
  • $10,000
  • $5,000
$200
Zoom Domestic Travel Insurance
  • No
  • Unlimited
  • $7,500
$200
Travel with Kit Domestic Travel Insurance
  • No
  • $25,000
  • $10,000
$100
Travel with Kit International Comprehensive Travel Insurance
  • Unlimited
  • $25,000
  • $10,000
$100
Australia Post Domestic Travel Insurance
  • No
  • $10,000
  • $4,000
$50
Easy Travel Insurance Domestic Single Trip Travel Insurance
  • No
  • $10,000
  • $3,000
$0
Easy Travel Insurance International Premium Single Trip Travel Insurance
  • Unlimited
  • Cover chosen
  • $15,000
$250
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Compare up to 4 providers

Important:

Travel insurance rules continue to change as a result of the coronavirus pandemic. We’re working hard to keep up and make sure our guides are up to date, however some information may not be accurate during the pandemic. It’s even more important to double-check all details that matter to you before taking out cover. Please know that some policies may not be available through Finder at this time. Here are some helpful tips:
    • If you're buying a policy today, it's unlikely that you'll be covered for any coronavirus-related claims
    • If your travel plans go against government advice, your policy will most likely be voided and you won't be covered
    warningFinally, some good news! Domestic travel is picking up, so some insurers have started offering cover again 🦘 Just remember, you won't be covered for any pandemic related claims if you do take out domestic travel insurance.
    If you're hiring a car as part of your trip, you might as well make sure your travel insurance also covers car rental excess. This will save you time and money. You won't have to bother with shopping around and a fair few brands already include this benefit without having to pay extra.

    Travel insurance with rental car excess cover included

    From visitors to this site, here are the most popular brands for car rental excess from April - July 2019. These brands automatically include rental car excess insurance in their policies so you don't have to pay extra for cover, except for Fast Cover where it's only automatically included on domestic policies.

    BrandsLimit on international policiesLimit on domestic policiesOption to increase limit?Apply
    1cover logo

    1Cover

    $5,000$5,000
    Budget Direct Logo

    Budget Direct

    $6,000$4,000
    Picture not described

    Australia Post

    $3000$3000
    Fast Cover

    Fast Cover

    Optional add-on$5000

    *Table last updated 21st September 2019

    Check out a full list of our partner brands

    What does travel insurance with rental car excess cover?

    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.

      BrandsPolicy TypeLimit on international policiesPriceApply
      1cover logo

      1Cover

      Comprehensive$5,000$84.11
      Budget Direct Logo

      Budget Direct

      Comprehensive$6,000$71.84
      Picture not described

      Australia Post

      Comprehensive$3,000$125.00
      Fast Cover

      Fast Cover

      ComprehensiveOptional add-on$99.99

      *Quote was made on 21st September 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.

      BrandsPolicy TypeLimit on domestic policiesPriceApply
      1cover logo

      1Cover

      Domestic$5,000$38.08
      Budget Direct Logo

      Budget Direct

      Domestic$4,000$36.73
      Picture not described

      Australia Post

      Comprehensive$3,000$125.00
      Fast Cover

      Fast Cover

      Domestic Plus$5,000$38.89

      *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 travel insurance 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.

        BrandRental car excess limitConditionsOption 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.
        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.

        Budget Direct Travel Insurance

        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.
        Columbus Direct

        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.
        Fast Cover

        fastcover

        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.
        holiday rescue logo

        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.
        InsureandGo

        InsureandGo

        International: $4,000

        Domestic: Up to $7,500

        Rental car excess waiver is available if you choose Silver or Gold cover.
        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.
        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.

        RACV Logo

        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.
        Skiinsurance.com.au

        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.
        Tick Travel Insurance

        Tick

        International: $4,000

        Domestic: $4,000

        Available for Standard or Top Cover only.
        none

        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.
        Travel Insuranz

        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.
        world2care cover

        World2Cover

        International: $3,000

        Domestic: $3,000

        You choose your desired excess amount and pay additional premiums.
        Zoom logozoom 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.

        Note: Information last obtained on September 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

        Compare travel insurance quotes with rental excess cover from Australian providers

        warning Finally, some good news! Domestic travel is picking up, so some insurers have started offering cover again 🦘
        Just remember, you won't be covered for any pandemic related claims if you do take out domestic travel insurance.
        International travel insurance is limited and sometimes unavailable at this point.

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