Rental car insurance excess – what is covered?

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Renting a car on holidays is a great way to get around, and it gives you the ultimate freedom on the road. If you’ve ever rented a car, however, you will know that costs can creep up when you arrive to pick up the vehicle and are faced with additional insurance options. 

An excess reduction product is offered by some car rental companies to reduce your liability if there’s damage or theft of the car. You can opt to pay an additional daily amount to reduce the excess level (the amount you will pay if there is damage or theft) which can sometimes double the rate you thought you were going to pay. 

Did you know your TID travel insurance policy has cover for the hire car insurance excess?

The TID Domestic policy automatically includes cover for your rental vehicle insurance excess up to $4,000 with the option to increase it to $6,000. Where we would pay the rental vehicle excess, we may pay the cost of repairing the vehicle instead, whichever is lower. 

You will still need the insurance options^ offered by the rental company to cover damage or theft of your rental vehicle (often included in your daily rate). With a TID policy, however, you can choose not to pay the additional daily amount to your car rental company to reduce the insurance excess. That means more spending money for holiday shopping! 

What does the Rental Vehicle Insurance Excess benefit cover?

TID will reimburse you for the rental vehicle insurance excess you have to pay if you rent a vehicle from a rental company and it is involved in an accident, is damaged or is stolen whilst in your care. 

If the expected rental vehicle insurance excess is more than AUD$4,000, you can also choose to increase the excess cover with us up to $6,000, for an additional premium, when you buy the policy. 

What types of Rental Vehicles are included?

The TID policy covers  any 4-wheeled vehicle with a gross vehicle mass less than 4.5 tonnes that you hire from a registered rental vehicle company and have a rental vehicle agreement in writing. 

Good to know

^Some companies – particularly those overseas – may use different terms for their insurance options such as Loss Waiver, Loss Damage Waiver (LDW), Collision Damage Waiver (CDW), etc.  TID only covers the excess or deductible you’re responsible for after you take out such option and something happens to the rental vehicle.

For full information on the rental vehicle insurance excess benefit and other terms, conditions and exclusions, see our PDS.

Get a quote for your next adventure below.


TID is an Australian online travel insurance company.

Travel Alert: Cover is not available for loss arising from government restrictions including travel bans, border closures and broadly imposed quarantine requirements, or failure to follow government advice. If your travel is affected by government restrictions, we have options available if you no longer need your policy. See our travel alerts.


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