Car Hire insurance in Australia

The information below is for customers hiring a vehicle (car, campervan, motorhome, 4WD or truck) in Australia, including both Australian residents and visitors. Australian residents travelling overseas and renting a vehicle can also take advantage of the Rental Insurance Excess options outlined below.

In partnership with Hiccup Insurance, DriveNow is pleased to offer a purpose written bespoke Rental Vehicle Excess (RVE) Insurance product underwritten by global insurance company Allianz Australia Insurance Limited.

When it comes to looking at insurance cover for a rental vehicle booked through DriveNow you have 3 options:

Option 1: Pre-Purchase Rental Vehicle Excess Insurance Now

Hiccup Insurance helps make your car rental experience as smooth and stress free as possible by offering comprehensive insurance cover to give peace of mind should the unexpected occur.

Advantages:

  • Pre-Purchased insurance - peace of mind with cover organised when booking your vehicle
  • Quick and Easy - 3 simple steps to get covered with instant email confirmation
  • Great rates and excellent cover
  • Choose your preferred level of rental vehicle excess cover at $4,000, $6,000 or $8,000
  • Provides cover for excess charged by all licensed car rental companies, including all suppliers on this website
  • Provides excess insurance cover for damage to rental vehicles including liability for single vehicle accidents
  • Provides cover for damage to windscreens, tires, glass, undercarriage and overhead damage
  • Provides cover for all authorised drivers named on the rental agreement who meet the age requirement
  • Provides cover for all travellers within Australia from any residency
  • Provides cover for Australian residents travelling overseas
  • Provides cover for luggage, personal effects and valuables that are stolen, accidentally damaged or are permanently lost up to $1,500 with a maximum of $500 per person
  • Make sure to read the Product Disclosure Statement carefully for a full list of terms and conditions

Disadvantages:

  • Just like any other travel insurance policy, this specialised Rental Vehicle Excess (RVE) Insurance product provides reimbursement for out of pocket expenses. Should an incident occur, the rental car company will charge your credit card (capped at your excess value) and you would then submit a claim to Allianz Global Assistance for assessment and reimbursement

Summary

This reduces your excess liability to $0 with daily cost starting from $15 (excluding any local taxes and applicable surcharges). Your actual price will vary depending upon the length of your rental period and the plan you select.


Option 2: Purchase Excess Reduction at the Rental Desk

All rental companies provide options to reduce your excess liability and charged on a daily basis. These can be purchased at the rental desk when collecting your vehicle.

Advantages:

  • Purchase can be made when collecting your rental vehicle
  • No delay in waiting for refund from insurance company

Disadvantages:

  • Cost - Higher premium that other options
  • Not insurance cover - Excess Reduction, Collision Damage Waiver or Loss Damage Waiver is not actually insurance cover. It is a fee paid directly to the car rental provider for them to charge your credit card a reduced excess or nil excess in the event of an accident
  • Exclusions - these products often exclude cover on areas such as:
    • Single Vehicle Accidents
    • The Vehicle's Under-Carriage
    • Tires
    • Windscreen

Summary

Excess liability is reduced to an agreed amount or to $0 with daily cost ranging from $22 to $50 depending upon rental company and type of vehicle hired (excluding any local taxes and applicable surcharges).


Option 3: Take No Option

All rental companies have standard insurance covering their vehicles and it is not a legal requirement to take out additional cover or reduce your liability. You can choose to rent and drive a car on the vehicle supplier's standard insurance policy and will be covered for damage to third party property and vehicles. However you will be liable for all costs up to the amount stated on the vehicle supplier's rental agreement.

Advantages:

  • Cost - No payment of insurance cover or excess reduction fees
  • Car rental companies usually have blanket insurance policies that cover their vehicle fleet. These policies cover damage incurred to third party property and vehicles above the excess amount they charge you the customer
  • Choice - Opting to reduce your risk by purchasing Rental Vehicle Excess Insurance or Collision Damage Waiver from an insurance company or rental supplier is entirely your choice. There is no legal obligation

Disadvantages:

  • Cost - In the event of any accident, suppliers will immediately charge your credit card a maximum damage excess fee of between $3,000 and $8,250 depending on the car type and supplier. Once repairs have been made they will reimburse you the difference should the damage costs be less than the paid maximum excess fee
  • No Recourse - You will have no further recourse other than to pay the full amount of the damage up to the excess amount

Summary

No Excess reduction costs are incurred however you are liable up to $8250 in the event of an accident depending upon the vehicle type and rental provider.
Some credit cards when used to pay for rental vehicles include excess insurance cover. Likewise some travel insurance policies can offer this option. In either case check with your provider and read their terms and conditions to ensure you fully understand the cover they offer and any limitations or exclusions.