Domestic car rental excess insurance

As well as potentially saving you thousands of dollars, car rental excess insurance in Australia can provide you with cover for vehicle repairs that rental companies typically exclude. This includes body, windscreen, tyres, roof and underbody damage.

Compare domestic car rental excess insurance

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International or domestic cover	Eligible driver age	Starting price (Per day)	Cover	Excess	Underwriter
Car hire excess	Both	21-75 years	$9.29 (for $4,000 cover)	From $4,000 to $8,000	No excess	HDI Global Specialty SE - Australia	Get quoteView details	loading
RACV	Domestic cover only	18-110 years	$6.31 (for $4,000 cover)	From $1,000 to $8,000	No excess	Tokio Marine & Nichido Fire Insurance Co., Ltd	View details	loading
Rentalcover.com	Both	19-99 years	$11.15	Up to $100,000	No excess	Asservo Mutual	View details	loading
Tripcover	Domestic only	19-99 years	$11.15	Up to $100,000	No excess	Assetinsure Pty Limited	View details	loading

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What does domestic rental vehicle excess cover?

When you rent a car in Australia, the rental company will charge you an excess if the car is damaged or stolen, which can be as much as $8,000. If anything goes wrong, you're liable to pay that excess. Domestic car rental excess insurance is designed to help you reduce the amount you have to pay to the rental company. You pay for a premium and in exchange, get peace of mind knowing that your domestic car rental excess insurance policy will protect you from extra fees if an accident occurs and the car is damaged.

Finder survey: What percentage of Australians say excess cover is the most important feature for domestic insurance?

5 ways car rental excess insurance can help you in Australia

Whether you're travelling for work, on a holiday or doing a road trip across Australia, domestic car rental excess insurance can be a trusty companion. Here's 5 ways it can help.

If you hit an animal.

As anyone who has travelled outside the main cities of Australia will tell you, it's really common to hit a kangaroo and it can cause some serious damage to your car. While most rental agreements don't provide cover if you're hit by an animal, some rental car excess companies will cover you, so if you're planning a road trip, be sure it's not excluded from your policy.

If you car share.

Do you use Go-Get or Car Next Door? Car-sharing services are becoming increasingly popular. These companies will usually offer some form of excess insurance or reduction but it pays to compare. Generally, you can save some money by buying car rental excess insurance separately instead of adding it onto your rate.

Extra inclusions.

Unlike the cover provided by rental companies, car rental excess insurance in Australia can include cover for damage to the windscreen, tyres, roof and underbody.

Reduces your excess to $0.

Rather than pay thousands of dollars as an excess if you have an accident or the car is stolen, a domestic car excess insurance policy can reduce your excess to zero so you won't have to worry about huge out of pocket costs.

Cover for all types of vehicles.

You can get cover for sedans, hatchbacks, coupes, station wagons, SUVs, 4x4 vehicles campervans and motorhomes (usually up to 4.5 tonnes) and up to 12-seater minibuses.

How do the costs compare?

For a clear indication of the costs, check out how a car rental excess insurer compares to car-sharing and rental company insurance. This quote is based on

• Rentalcover.com. You can get cover from $9.48 and reduce your excess to zero. You'll also get cover for all single and multiple vehicle accidents and vehicle repairs including body damage, windscreen, tyres, roof and underbody damage. It also comes with key loss cover and coverage for theft, fire and vandalism.
• Go-Get. Insurance is included in your rental price, but for a standard car you are liable to pay $2,000 in excess. You can reduce your damage excess cover to $300 by paying $19.90 extra per day. Keep in mind that this will not cover you for all loss or damage.
• Avis. Avis's standard liability excess is $5,445. To reduce your excess to $634 dollars, you will likely pay in the region of $30 a day. For instance, it will cost you $19 per day for a compact car in Sydney. This does not include cover for certain loss or damage, including overhead, underbody and water damage.

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^{* Prices are based on a 14-day compact car hire in Australia for a 25+ year old driver. Quotes were retrieved in August 2024.}

Do I need extra insurance when renting a car in Australia?

No, it is not mandatory. If you don't have car excess insurance, you run the risk of paying thousands of dollars towards repairs if you have an accident or the car is stolen. Some travel insurance policies actually cover rental car excess insurance as well, but it's good to understand what that cover includes. Domestic car rental excess insurance is its' own specific type of insurance so generally, you'll find it has more inclusions.

What's not covered by car hire excess insurance in Australia?

In most cases, you won't be covered for the following:

• Motorhomes, specifically vehicles that have a toilet or shower
• Some campervans with sleeping berths or any vehicle exceeding 4.5 tonnes
• Vehicles, including 4x4s, that are used on unsealed roads
• Minibuses that require a specialised drivers licence
• Damages resulting from a breach in your rental agreement or where you have broken the law.

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Frequently asked questions

• What is rental vehicle excess insurance?

  Rental vehicle excess insurance is another form of insurance designed to reduce the amount you have to pay if you're rental car is damaged or stolen in your care.

  When you hire a car in Australia, it will usually come with some form of insurance included in the rate of your rental. Then if damage is caused to the vehicle, this insurance will cover you but the rental company will charge you an excess to process your claim. Rental vehicle excess insurance will cover this excess amount.

• What is the best way to cover hire car excess?

  You can choose from the excess cover offered by your car hire company; or you can buy your own standalone policy. Generally, the standalone policy will be cheaper, but the inclusions can be different.

• Should you get the extra insurance on a rental car?

  It really depends on how much risk you're willing to take. Most people like to travel with peace of mind, so if you're like that, then we do recommend some form of rental excess insurance.

• Does my car insurance cover rental cars in Australia?

  No. Rental cars will some sort of insurance called a Collision Damage Waiver or a Loss Damage Waiver which insures the car. This is usually included in the hire rate of the rental car.

  While there is this insurance included in the rate, you might still be charged an excess amount which is why you would want rental vehicle excess insurance to cover you for that.

• What is excess reduction insurance in Australia?

  Excess reduction is offered by rental companies to reduce the amount of out-of-pocket expenses if you're rental car is involved in an accident or stolen. While it reduces the excess, you may still be liable to pay the remaining excess which can be hundreds of dollars.

• What's a collision damage waiver?

• Get cheap car hire excess insurance

• Learn more about Rentalcover.com

Written by

Gary Ross Hunter

Journalist

Gary Ross Hunter has over 6 years of expertise writing about insurance, including life, health, home, and car insurance. Having reviewed hundreds of product disclosure statements and published over 800 articles, he loves simplifying complex insurance topics for everyday readers. Gary has contributed to major outlets like Yahoo Finance, The Sydney Morning Herald, and news.com.au, and holds a Bachelor of Arts (Honours) in English Literature from the University of Glasgow, along with a Tier 2 General Advice certification, ensuring his work adheres to ASIC’s RG146 standards. See full bio

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