Does travel insurance cover car hire excess?

You can get travel insurance with rental car excess cover, but normally you’ll need to take out a comprehensive policy or upgrade your cover with an add-on.

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Find 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 usually gives you the most value).

Name Product Rental car excess insurance Cancellation and amendment fees COVID-19 expenses Theft or damage to lugagge Standard excess
Southern Cross TravelCare Single Trip
$5,000
Cover chosen
Some cover
  • $25,000
$250
Southern Cross Domestic Travel Insurance
$6,000
Unlimited
Some cover
  • $15,000
$100
Zoom Domestic Travel Insurance
$5,000
Unlimited
  • $7,500
$200
World2cover International Top Cover Travel Insurance
$5,000
Unlimited
  • $15,000
$200
World2cover Domestic Travel Insurance
$5,000
$25,000
  • $7,500
$200
Fast Cover Basics Travel Insurance
Optional
  • $2,000
$200
Fast Cover Standard Saver Travel Insurance
Optional
$25,000
Some cover
  • $5,000
$200
Fast Cover International Comprehensive Travel Insurance
Optional
Unlimited
Some cover
  • $15,000
$200
Fast Cover Domestic Plus Travel Insurance
$5,000
Unlimited
  • $7,500
$200
Fast Cover Snow Sports Plus Travel Insurance
Optional
Unlimited
Some cover
  • $15,000
$200
CoverMore International Basic Travel Insurance
No Cover
Cover chosen
Some cover
  • $5,000
$250
CoverMore International Comprehensive Travel Insurance
$5,000
Cover chosen
Some cover
  • $15,000
$250
CoverMore International Comprehensive+ Travel Insurance
$5,000
Cover chosen
Some cover
  • $25,000
$250
CoverMore Domestic Basic Travel Insurance
No Cover
Cover Chosen
Some cover
  • $0
$50
CoverMore Domestic Comprehensive Travel Insurance
$5,000
Cover Chosen
Some cover
  • $5,000
$50
CoverMore Domestic Comprehensive+ Travel Insurance
$5,000
Cover Chosen
Some cover
  • $15,000
$50
CoverMore - Inbound Travel Insurance
$5,000
Cover Chosen
Some cover
  • $15,000
$250
InsureandGo Bare Essentials Domestic
No Cover
$2,000
  • $2,000
$100
⭐ Finder Exclusive: Save 10% on your travel premium and enjoy competitive cover limits on trips you make in Australia with InsureandGo. Ts&Cs apply.
InsureandGo Silver Domestic
$4,000
$10,000
  • $5,000
$100
⭐ Finder Exclusive: Save 10% on your travel premium and enjoy competitive cover limits on trips you make in Australia with InsureandGo. Ts&Cs apply.
InsureandGo Gold Domestic
$7,500
$50,000
  • $8,000
$100
⭐ Finder Exclusive: Save 10% on your travel premium and enjoy competitive cover limits on trips you make in Australia with InsureandGo. Ts&Cs apply.
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Important:

Travel insurance rules continue to change as a result of the pandemic. Some information may not be accurate at this time. It’s even more important to double-check all details that matter to you before taking out cover. Please note:
    • Some policies may not be available through Finder at this time
    • It’s unlikely that your policy will cover expenses from border closures

    Save time and money by including your car rental excess cover as part of your travel insurance policy. Some brands automatically include it, while some brands offer car hire excess cover as an add-on.

    Want to know more? Find out what rental car insurance excess is, its benefits and other frequently asked questions in our guide.

    Travel insurance with rental car excess cover included

    These are the most popular brands on Finder for car rental excess from April - July 2019. All of 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?

    Here's what the right travel insurance policy can cover:

    • Excess if there's loss or damage to the car. 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. 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.
    • Good to know. 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 the rental agreement, car hire companies will offer the option to reduce your excess charge for a daily fee. This is often referred to as an excess waiver or excess reduction option.

      Often you'll be able to reduce the excess to zero if you're 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 usually 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 will indirectly cover you for the costs involved if there's damage or loss to your rental car.

      When you hire a car, it usually comes with its own form of insurance called a loss damage waiver or the collision damage waiver. If you get into an accident and damage the car, you'll be charged an excess by the rental company and that's the amount your travel insurance should cover you for.

      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.

      You can get this cover 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.

      8 things you need to be eligible for car rental excess cover/b>

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

      • 1. 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.
      • 2. Licensed rental company. The vehicle must be rented from a licensed rental company or agency.
      • 3. Rental agreement compliance. You must comply with all of the rental company's requirements as outlined in the rental agreement.
      • 4. 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.
      • 5. 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.
      • 6. Time limit. Some insurers impose a maximum time limit on the rental contract, such as 15 days.
      • 7. Insured drivers. The car must only be driven by insured persons listed on your travel insurance policy and the car rental contract.
      • 8. Provide documentation in 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

        While cover differs between insurers, your car rental excess claim usually won't 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

        Here's a list of brands that cover car hire excess

        We took a look at 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?
        InsureandGo

        InsureandGo

        International: $4,000

        Domestic: Up to $7,500

        Rental car excess waiver is available if you choose Silver or Gold cover.
        Get quote
        Tick Travel Insurance

        Tick

        International: $4,000

        Domestic: $4,000

        Available for Standard or Top Cover only.
        Get quote
        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.
        Get quote
        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.
        More info
        world2care cover

        World2Cover

        International: $3,000

        Domestic: $3,000

        You choose your desired excess amount and pay additional premiums.
        Get quote
        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.
        Get quote
        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.
        More info
        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.

        More info
        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.

        More info

        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.
        More info
        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.
        More info
        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.

        More info

        Picture not described

        Medibank

        International: $6,000

        Domestic:$5,000

        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.

        More info
        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.
        More info
        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.

        More info

        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.

        More info

        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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