Insurance and Excess Reduction
How your liability for damage works when you hire a campervan, the bond, your excess reduction options, and the common exclusions that apply whichever option you choose.
How campervan insurance works
Every campervan rental includes standard cover, but you're liable for damage up to an amount called the excess, also known as your liability. The amount is set by the rental company and can differ between vehicles from the same company, such as 4WDs or vans with a toilet and shower. It can also change with the travel period. Your quote shows the liability for the vehicle and option you select, and the rental terms explain what it covers. In some situations the excess limit doesn't apply. See when you are fully responsible.
Your liability and your bond are separate. Your liability is the most you can be charged for damage when no exclusion applies. The bond is the money the rental company takes or holds on your card at pick-up. As a rough guide for budgeting, the standard liability and the bond can each run to several thousand dollars, and they can be higher for larger vehicles and 4WDs. Your quote and the rental terms show the exact amounts for your vehicle and option. Check both before you book.
The bond isn't the most you can pay. Here's an example with made-up amounts. Your quote shows a liability of $7,500 and a bond of $3,000. You damage the van, the repair costs $5,000 and no exclusion applies. You can be charged $5,000, even though your bond was only $3,000. The bond is the security the rental company holds. Your liability is the most you can be charged for damage.
Standard liability (no additional cover)
If you don't buy excess reduction or an all-inclusive package, you accept the rental company's standard excess. This is the most you'll be charged for damage to the vehicle, unless one of the exclusions in the rental terms applies. Other charges under the rental terms, such as tolls, fines and their administration fees, aren't part of the excess.
You choose your liability level when you book on the DriveNow website, after you select your vehicle, at Step 2, Review Quote and Request Additional Options. If you're not sure which to choose, call DriveNow on 1300 547 214 or +61 3 9095 7460 and we'll explain the options.
Standard liability is included in the daily vehicle hire rate at no extra cost. However, the rental company usually takes or holds a bond on your card at pick-up, and with standard liability this is usually the largest bond. See Bond below.
Reduce excess options
Most rental companies offer one or more excess reduction options, which lower your maximum liability for a daily fee.
How it works: You pay a daily fee and your maximum liability drops to a smaller amount. The fee and the reduced amount depend on the rental company, the vehicle and the option. Your quote shows the daily fee and the reduced liability for each option.
Some rental companies offer two reduction levels:
- Reduction Level 1: a lower daily fee that partly reduces your excess
- Reduction Level 2: a higher daily fee that reduces your excess further
Reducing your excess may also lower your bond, but not always. Check the bond for each option in your quote or the rental terms.
If you didn't choose excess reduction or an all-inclusive package when you booked, you can add it at pick-up, but only before you sign the rental agreement. You can't add it once you're on the road.
Reading a liability option on the booking page
This dated JUCY Cloudbreak quote is for a Melbourne return trip, 14 to 23 January 2028, charged as 10 hire days. Screenshots were captured on 9 November 2026. Your own quote and rental conditions show the current options and terms.
The price beside each option is the booking total
The prices beside Risk-Taker, Essentials and Comprehensive are the total booking amounts. They aren't the excess or bond.
Selecting Essentials changes this example's total from AUD1,501.20 to AUD1,851.20. That's AUD350 more, or AUD35 per day for 10 hire days. No camping chair is selected here.
What you could still have to pay
The expanded Essentials details show:
- Accident liability: AUD1,500.
- Security bond: AUD1,500.
- Damage excluded: windscreen and tyres, overhead and roof panels, and single-vehicle rollover.
Excess reduction leaves some risks with you. The details and rental conditions explain the cover; the option's name alone doesn't.
The step-by-step quote example explains the payments and the separate chair example.
All-inclusive package
Most rental companies offer an all-inclusive package. It combines excess reduction with extras such as camping chairs, tables and additional drivers. What's included varies between rental companies, and the booking page lists it when you select this option.
Package names and what they cover vary. The all-inclusive package usually gives you the lowest liability the rental company offers, but the amount isn't always $nil. Some 4WD vehicles need a separate liability reduction to get the lowest amount. The package can also lower the bond, or change it from a charge to a hold on your card. Check the liability and bond for your vehicle in your quote.
All-inclusive doesn't mean everything is covered. The exclusions under when you are fully responsible still apply, and some rental companies leave windscreen and tyre damage, or 4WD cover, out of the package. Check what yours includes before you rely on it.
What to check in your quote before you book
Excess, bond and card rules differ between rental companies, vehicles and travel dates, and they change. So we don't list one set of amounts for each rental company. Check these details for the vehicle and option you select, in your quote and the rental terms, before you confirm your booking:
- Your liability: the maximum amount for each option, and whether it covers damage to third-party property
- The exclusions: what each option excludes. Check roof, underbody, windscreen and tyre damage one by one, because some options or separate products cover them and others don't
- The package name: which option you're buying, and whether it covers your vehicle type. For a 4WD, check whether you need a separate 4WD reduction
- The bond amount: how much the rental company takes or holds at pick-up with each option
DriveNow takes payment for your booking. The rental company handles the bond at pick-up, under its own rental terms. If your quote or the rental terms don't make your liability or bond clear, ask DriveNow before you confirm your booking.
Card and bond checklist
The rules for the bond card can differ from the rules for paying DriveNow for your booking. Check these points in the rental terms:
- Charge, hold or card authority: whether the bond is charged to your card and refunded later, reserved as a pre-authorisation hold, or taken as a card imprint or authority. Ask whether funds will actually be reserved on your card
- Accepted cards: whether the rental company accepts a debit card for the bond, or only a credit card. A card DriveNow accepts for your booking payment isn't always accepted for the bond. Some debit cards have restrictions that stop them being used for a bond, so check yours
- Cards that can't be used: prepaid travel cards and digital wallets, such as a card stored on your phone, can't be used for the bond
- Whose card: whose name must be on the card, and whether that person must be at pick-up to sign
- Available funds: that the card has enough available credit or funds for the bond, as well as any other payments due at pick-up. Not enough available credit is a common problem at pick-up
- Overseas cards: the bond is taken in Australian dollars, and your bank converts it at that day's exchange rate. When the bond comes back, it's converted again at the rate on that day. So the amount back in your home currency can differ from the amount taken. For example, with illustrative rates, a $5,000 bond might show as €3,200 when it's taken and €3,180 when it's refunded two weeks later
- Refund or release: how and when the bond is refunded or released after you return the vehicle
Third-party excess insurance
Third-party excess insurance isn't the same as the rental company's excess reduction or all-inclusive package. Instead of buying cover from the rental company, you can buy standalone excess insurance from an independent provider before your trip. It can cost less than the rental company's own products, so compare the cost for your trip.
How it works: You usually take the rental company's standard liability option instead of its excess reduction. If there's damage, you rely on your third-party policy to reimburse any excess charged, subject to the policy's terms and exclusions. You pay the excess to the rental company first, then make a claim with your insurer. Claims can take a while to be paid.
Third-party cover doesn't change what the rental company asks for at pick-up. You still pay the bond for the standard liability option.
Advantages:
- Can cost less than the rental company's excess reduction
- Sometimes broader cover. Some policies include windscreen, tyre, undercarriage and roof damage that rental company products may exclude. Check the policy wording
- You may be able to cancel it before your trip if your plans change. Check the policy's cancellation terms
Disadvantages:
- Reimbursement-based. You must pay the excess to the rental company first, then submit a claim with supporting documents. Reimbursement can take time
- You need to keep all the paperwork from the rental company's damage assessment, including the rental agreement, damage report, photos and receipts
- Not all third-party policies cover campervans and motorhomes. Check the vehicle type and value limits before you buy
Credit card insurance
Some credit cards include complimentary rental vehicle excess insurance when you pay for your rental with the card. For campervan hire, this cover has significant limitations:
- Vehicle type exclusions. Many credit card insurance policies exclude campervans, motorhomes and vehicles above certain value or weight limits. Always check your card's terms
- Payment conditions. Cover usually depends on paying for the rental with the card. Check what your card requires
- Reimbursement-based. You pay the excess to the rental company first, then make a claim with your card issuer
- Road restrictions. No cover for off-road driving or a breach of the rental terms
- Rental period limits. Cover is usually limited to a maximum number of consecutive days, which may not be enough for a longer campervan trip
Card benefits change, so check your card's current terms before you rely on them. For more on credit card cover, see the car hire insurance page.
Which option is right for you?
Whichever option you choose, the exclusions under when you are fully responsible still apply, so no option removes all of your liability.
- First campervan trip, or new to driving in Australia? Choose excess reduction or an all-inclusive package. It's what we usually recommend. It takes away most of the worry about a big repair bill, and it often lowers the bond. You can still add it at pick-up, but only before you sign the rental agreement.
- Choose standard (no additional cover) if you're comfortable carrying the risk of the full excess and want to keep your daily costs as low as possible. Check that you can cover the bond on your card. It suits experienced travellers who understand how much they could be charged.
- Choose excess reduction if you want to lower your liability without paying for the full all-inclusive package. It's a good middle ground if you're on a budget but still want some protection.
- Consider all-inclusive if you want lower liability and extras such as camping chairs and extra drivers in one package. Compare its liability, bond and total cost in your quote with excess reduction and extras bought separately, particularly on longer trips.
- Choose third-party insurance if it costs less for your trip and you're comfortable paying the rental company first and then claiming from your insurer. Check that your policy covers campervans, and what it excludes, before you rely on it.
Real-world scenarios
These examples show how the options compare. What you pay depends on your rental company's terms, the liability shown in your quote and, for third-party cover, your policy wording. In every scenario, the exclusions under when you are fully responsible can make you liable for more.
Scenario 1: You scrape a post in a caravan park
- Standard (no additional cover): The rental company charges the repair cost, up to your standard excess, unless an exclusion applies.
- Excess reduction: You pay up to your reduced excess, unless an exclusion applies.
- All-inclusive: You pay up to the all-inclusive liability shown in your quote, unless an exclusion applies. For example, damage to the roof or underbody is commonly excluded.
- Third-party insurance: You pay the rental company first. You can then make a claim, and whether it's paid depends on your policy.
Scenario 2: A stone cracks the windscreen on an outback highway
- Standard: You pay for the repair, up to your excess or more if an exclusion applies. Windscreen damage is a common exclusion. See the exclusions below.
- Excess reduction or all-inclusive: Windscreen damage may still be excluded. Some rental companies sell separate windscreen and tyre cover, so check your rental company's terms.
- Third-party insurance: Some third-party policies cover windscreen damage. Check your policy.
Scenario 3: A serious accident causes major damage
If no exclusion applies, your liability for the damage is capped at the excess for the option you chose, whatever the repair costs. Other charges under the rental terms can still apply. If an exclusion applies, such as a single-vehicle rollover or a breach of the rental agreement, you can be responsible for the full cost.
- Standard: You pay up to your full standard excess, unless an exclusion applies.
- All-inclusive: You pay up to the all-inclusive liability shown in your quote, unless an exclusion applies.
- Third-party insurance: You pay up to your standard excess first. You can then make a claim, and whether it's paid depends on your policy.
Bond
The bond is a security deposit the rental company takes or holds on your card when you pick up the vehicle. The amount depends on the rental company, the vehicle and the liability option you choose. It's usually highest with standard liability and lower with excess reduction or an all-inclusive package. The bond isn't always the same as your liability, so check both in your quote or the rental terms.
The rental terms set the conditions for getting the bond back. They commonly include returning the vehicle on time, to the correct location, undamaged, clean, and with the fuel tank and gas bottle full.
The rental company sets which cards it accepts for the bond and whose name must be on the card. Some accept only credit cards and some accept debit cards. Some require the cardholder to be at pick-up. Use the card and bond checklist before you book.
Bond types:
- Charged (debited): the amount is taken from your card and refunded after you return the vehicle, if the conditions are met
- Held (pre-authorisation): the amount is reserved against your card's available credit or funds. Nothing is charged unless there's a cost to recover
- Card imprint or authority: the rental company keeps your card details or a signed authority so it can charge costs later. This doesn't always reserve funds, so ask the rental company whether it will place a hold
When do I get my bond back?
The rental company refunds or releases the bond after you return the vehicle, if you've met the conditions in the rental terms. How long this takes depends on the rental company and your bank, so ask the rental company at pick-up when to expect it. If the bond was a hold, you won't see a refund. There's no separate refund transaction: the hold disappears from your account instead.
If you have an overseas card, the amount back in your home currency may differ from the amount taken at pick-up because of the exchange rate. See overseas cards in the card and bond checklist.
If only part of your bond comes back, the rental company has usually kept some of it to cover costs such as damage, cleaning, fuel or a gas bottle not returned full, tolls or fines. See unexpected additional charges for how to query a charge.
Still waiting, or not sure why part of your bond was kept? Call us on 1300 547 214 or +61 3 9095 7460. We'll check with the rental company that your bond has been released, and look into any part refund with them.
Will the bond affect my credit card balance?
A charge or a pre-authorisation hold reduces your available credit or funds for the whole rental, and until it's refunded or released after you return the vehicle. For example, if a $5,000 bond were held on a card with $6,000 of available credit, you'd have about $1,000 left to spend during your trip. This is only an illustration. Your bond depends on your rental company, vehicle and option, so check it in your quote and make sure your card has enough available credit or funds before pick-up.
When you are fully responsible
Whichever option you choose, you're fully responsible for the cost of damage in some circumstances. These vary between rental companies, but commonly include:
- Damage caused where the terms of the rental agreement have not been met
- Damage caused by negligence or wilful conduct
- Damage caused by partial or total submersion in water, or by salt water
- Damage caused while using the vehicle in breach of traffic laws
- Damage and recovery costs for a bogged vehicle
- Damage to or loss of personal belongings
- Damage or loss caused by a pet
- Damage caused by using incorrect or contaminated fuel
- Single-vehicle rollover
- Damage to the overhead (roof) or underbody of the vehicle
- Damage to awnings
- Damage to the windscreen or tyres
Next steps
- Charges at pick-up: paying the bond at the branch
- Road restrictions: driving where cover doesn't apply
- Accidents: what to do if you have an accident
Part of Booking Your Campervan in the Campervan Hire Handbook.