Reducing your rental car insurance excess in Australia
This information is for customers collecting a car hire in Australia. For information about car rental insurance in other countries, see the following links: New Zealand, Canada, United Kingdom, United States.
VroomVroomVroom have partnered with Prosura to offer a tailored Rental Vehicle Excess (RVE) Travel Insurance product to our Customers. Pacific International Insurance Pty Ltd underwrites the Insurance product.
VroomVroomVroom is an Authorised Representative (001280762) of Prosura Pty Ltd ABN 59 638 142 720, Australian Financial Services Licence Number 530275 (‘Prosura’). Prosura has been authorised by Pacific to enter into policies and deal with them, as the agent of the insurer. Prosura Rental Vehicle Excess Travel Insurance Products are issued by the insurer, Pacific International Insurance Pty Ltd ABN 83 169 311 193 (‘Pacific’). VroomVroomVroom does not act as your agent. If you purchase a policy, we receive a commission which is a percentage of your premium — ask us for more details.
Any advice provided by VroomVroomVroom is general and does not take into account your objectives, financial situation or needs. Before making a decision whether or not to purchase insurance, please consider your own personal circumstances and the Product Disclosure Statement the Target Market Determination.
Prosura is here to help make your car rental experience as easy and enjoyable as possible, the kind of assurance we all want when travelling on the road. Visit prosura.com to learn more.
Pros
Reimbursement cover for:
Excess fees charged by all licensed car rental companies, including all suppliers on this website, and
Other charges arising from accident or theft, such as:
Damage to windscreens, tires, glass, undercarriage & overhead damage.
Towing and relocation costs
Miss-fuelling fees,
Key loss and lock out expenses.
Not age specific - drivers of any age are eligible for cover as long as they have a valid driver’s license and are authorised to drive the car by the rental company.
Vehicles weighing less than 4.5 tonnes, which can be driven with a standard car driver licence including, cars, four wheel drives, mini buses, people movers, campervans and motorhomes.
No exclusions for single vehicle accidents
Cover for damage or theft to Personal Baggage during your rental, up to $2,000 (excluding valuables)
Emergency cancellation protection - reimbursement of a prepayment made to a rental company for your rental, if you have to cancel your rental due to the defined emergency circumstances and the rental company will not refund your prepayment.
Exclusions and eligibility terms and conditions apply. Make sure to read the Product Disclosure Statement carefully for full terms, conditions and exclusions.
Cons
Just like any other travel insurance policy, this specialised Rental Vehicle Excess (RVE) Travel 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 Prosura for assessment and reimbursement.
Total Cost:
From $17.15 per day (plus local taxes surcharges) with $0 excess.
Option 2: Purchase the rental company’s 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.
Cons:
Much more expensive than third party rental vehicle insurance options.
Excess Reduction, Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) is not regulated 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 limit cover to damage to the car’s bodywork. They may exclude cover for damage to expensive items such as:
The undercarriage;
Tyres;
Windscreen;
Single vehicle accidents (SVAs)
Personal baggage.
Total Cost:
$22 - $50 per day, depending on the supplier and car type (plus local taxes surcharges).
Excess Reduction or Collision Damage Waiver can vary depending on the provider, the exact vehicle hired, the age of the driver, the length of the hire period, and a number of other conditions. As such, the exact Terms and Conditions related to an individual vehicle rental can vary from one customer to another and one type of vehicle to another. Please be sure to read the policy details carefully beforehand.
Option 3: Choose not to purchase insurance or the rental company’s excess reduction package
Pros:
Car rental companies usually have blanket insurance policies that cover their entire fleet of vehicles. These policies usually cover any damage incurred to third party property and vehicles; above the excess amount they charge you the customer. Please check with the rental company for details on their insurance policies.
Choosing to reduce your risk by purchasing Rental Vehicle Excess Insurance or Collision Damage Waiver from an insurance company or car rental company is entirely your choice. It is not a legal requirement.
Cons:
In the event of an accident (major or minor), the car rental company will charge your credit card a maximum damage excess fee of between $3,350 and $9,000 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.
You may be liable for other charges in addition to the excess fees where these are not included in the car rental company’s basic insurance or excess fee cap.
