Travel Insurance Direct

Rental car insurance excess – what is covered?

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?

TID policies automatically includes rental vehicle insurance excess coverage. You’ll still need to take out insurance for the vehicle but you don’t have to pay the hefty daily rates to the car rental company to reduce your excess. Read on for more detail about what’s covered.

What does the Rental Vehicle Insurance Excess benefit cover?

If your rental vehicle is damaged or stolen while it’s in your care, the policy covers the lower of the excess (also known as a deductible) the rental company requires you to pay or cost of repairs. This means that you may not need to pay the rental company to reduce your excess, but you may still need to pay for the physical damage insurance for the rental vehicle and the liability insurance they offer you (that is, any insurance covering injuries to other people or damage to property not owned by you).

Although TID policies provide cover for Personal Liability, we won’t cover you if you injure someone or damage anyone’s property while you are driving any motor vehicle, are a passenger, or are otherwise responsible for the motor vehicle.

If the expected rental vehicle excess is more than the amount covered by the policy, we won’t pay any amount exceeding the policy limit.

What types of Rental Vehicles are included?

The only vehicles that the TID policy covers are those listed in the definition of “Rental Vehicle” within the PDS.

A rental vehicle means 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.

You won’t be covered for Rental Vehicle Insurance Excess Cover for Rental Vehicles other than those mentioned in the definition.

Good to know

CDW/LDW – Collision Damage Waiver/Loss Damage Waiver are terms used to describe the physical damage insurance for the vehicle itself.

This is a brief summary of cover only and does not include the full terms, conditions, limitations and exclusions. Read the PDS before purchasing.