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Does Travel Insurance Cover Rental Vehicle Excess?

millenial guy calling for assistance with his rental car

What you need to know about rental car excess and what is covered

If you are a thinking of travelling around Australia, renting a car is an excellent choice. However, if your car hire in Sydney was involved in an accident or damaged, you may be liable to cover the cost of the rental car excess, and that can cost you big bucks, hence having travel insurance if often a smart move.

There once was a time when credit card companies offered their customers fantastic rental car insurance. Most credit card companies continue to provide a level of rental car insurance, but the extent of the coverage now varies. Remember, rental car excess can range from  $3500 - $7500 and this excludes premium location surcharges which also applies to car rentals from the Airport.

Travel insurance products, including complimentary travel insurance (given as a credit card benefit), offer cover for rental vehicle excess up to a nominated value. These may seem like great value, though, may have many exclusion like single vehicle accidents, damage to windscreens and auto glass, roof,  tyres and underbody of the rented car. They also may not cover the hidden cost for example premium location surcharges, administration fees which can leave you thousands of dollars out of pocket!  You should also be aware that that the rental vehicle excess exclusions (detailed in the rental agreement) differ from car rental company to car rental company.

That's why it's essential that you cautiously review the specific terms and conditions of your travel insurance policy including the car rental agreement to make sure that you have an acceptable level of cover.

Got additional questions about reducing your hire car insurance? VroomVroomVroom has partnered with Hiccup Insurance to provide a tailored Rental Vehicle Excess (RVE) Insurance product to our customers which provides cover for a lot of those exclusion. The global insurance company, Allianz Australia Insurance Limited, underwrites the RVE Insurance product offered by Hiccup Insurance.