Reducing your Car Hire Insurance Excess in Australia

This information is for customers collecting a rental in
 Australia
. For information about rental insurance in other countries, see the following links:
New Zealand, Canada, United Kingdom, United States.

VroomVroomVroom have partnered with Hiccup Insurance to offer a tailored Rental Vehicle Excess (RVE) Insurance product to our Customers. The global insurance company, Allianz Australia Insurance Limited, underwrites the RVE Insurance product provided by Hiccup Insurance.

NOTE: Don't delete this include as its used at /insurance/
Alternatively, you can visit www.hiccup.com.au to learn more.

Pros:

  • Choose your preferred level of rental vehicle excess cover; either $4,000 or $6,000.
  • 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, as well as any liability for single vehicle accidents.
  • Provides cover for damage to windscreens, tires, glass, undercarriage & overhead damage.
  • Provides cover for all authorized drivers on the rental agreement who meet the age requirement.
  • Provides cover for all travelers within Australia from any residency.
  • Provides cover for luggage and personal effects up to $1,500 (max $500 per person).

Cons:

  • Just like any other travel insurance policy, this specialized 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 AGA for assessment and reimbursement.
   

Total Cost:

 
From $14.88 per day with $0 excess. Price depends on your trip duration and chosen plan.
 

Option 2: Purchase Excess Reduction or Collision Damage Waiver at the Rental Desk

Pros:

  • You don't need to wait while the travel insurance company refunds the excess.
  • Purchase can be made at the same time that you collect your rental car.

Cons:

  • Much more expensive than other options.
  • Excess Reduction or CDW is not actually insurance cover. It is a fee paid directly to the car rental company in exchange for them charging your credit card a reduced excess or nil excess in the event of an accident.
  • These products often exclude cover for damage to important items such as:
    • the under carriage;
    • tyres;
    • windscreen; and
    • single vehicle accidents (SVAs).

Total Cost:

 
$22 - $50 per day, depending on the supplier and car type (plus local taxes + surcharges).
See excess reduction information for: 
   

Option 3: Choose to do nothing

Pros:

  • Car rental companies usually have blanket insurance policies that cover their entire fleet of vehicles. These policies cover any damage incurred to third party property and vehicles; above the excess amount they charge you the customer.
  • Choosing to reduce your risk by purchasing Rental Vehicle Excess Insurance or Collision Damage Waiver from an insurance company or car rental supplier is entirely your choice. It is not a legal requirement.

Cons:

  • In the event of an accident (major or minor), 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 the supplier.
  • You will have no further recourse other than to pay the full amount of the damage up the excess amount.

Total Cost:

 
$0 per day but up to $8,250 in the event of an accident.

Hiccup Insurance Pty Ltd ABN 64 168 267 034 is an authorized representative of AGA Assistance Australia Pty Ltd ABN 52 097 227 177 AFSL No. 245631 trading as Allianz Global Assistance. Travel insurance is issued and managed by Allianz Global Assistance as agent for the insurer Allianz Australia Insurance Limited (Allianz) ABN 15 000 122 850 AFSL No. 234708. We do not provide any advice on this insurance based on any consideration of your objectives, financial situation or needs. Before making a decision please consider the Product Disclosure Statement available on this website. If you purchase a policy, we receive a commission which is a percentage of your premium - ask us for more details.

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