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    Excess in a Rental Car​

    excess in a rental car

    What is excess in a rental car?

    Every rental car comes with an excess amount. This is the amount that you would need to pay if any damage or theft were to happen to your vehicle when in your possession. Although car rental companies have their own insurance, there is an amount that is the customer's responsibility. We call this the excess. If anything were to happen to your car rental, you would then be required to pay up to the excess amount. Depending on the car rental company, the type of car and the pick-up location will determine this cost. Keep in mind that local fees and charges are added onto your excess amount including a Premium Location Surcharge.

    Rental Vehicle Excess is also known as a Damage Liability Fee, Accident Damage Excess or a Damage Recovery Fee. Each of these refer to the same thing being the customer's financial liability of the car hire. Although car rental companies have their own insurance for their cars, there is a gap that the customer is liable for.

    How much is the excess?

    Your excess amount could range between $3,000 to $8,250 depending on the type of car you will be renting, and the rental company or depot you will be hiring from​. Instead of paying the full amount that the car would cost to be replaced or fixed, the excess cost is the amount you would need to pay. In order to figure out what your excess is, check your car rental agreement or call the car rental company.

    Make sure to check the suppliers terms and conditions here​ for more information.

    Read more about how much your excess may be here​​​.

    What can I do to reduce my excess?

    To put it simply, Rental Vehicle Excess Insurance​ is what can cover your hire car if damage or theft were to occur. If the car is stolen or damaged, Rental Vehicle Excess Insurance is there to help you. By doing this, you will have the piece of mind that you will not be charged thousands of dollars for the car rental. Our partner Hiccup Insurance offers policies that cover you if your vehicle is stolen and for a lot of causes of damage that excess reduction products commonly exclude. This product is independent to car rental companies, so your journey will still be covered if you decide to rent a car with an alternate provider on the same dates. You can lodge a claim for reimbursement for any out of pocket damage expenses charged to your credit card up to your level of cover.

    Another way to reduce your excess is to Purchase Excess Reduction or Collision Damage Waiver at the Rental Desk however, this option costs more and has many exclusions. Make sure to do your research to see what will suit you needs best.

    There are many different options available, for information click here.

    Example:

    What can happen if you don't purchase insurance:

    David hired a Toyota Corolla from a car rental company in Sydney Airport. The cost to purchase a new Toyota Corolla identical to his rental car is $20,000. The car rental company has their own insurance to cover the full replacement cost of the car.
    W hen at the rental desk, David reads in his rental agreement that his maximum excess cost is $5,000. This means that if he has an accident he is liable to pay up to the excess amount for any damage up to $5,000. 
    When David picked up his rental car, he decided not to purchase excess reduction insurance or Rental Vehicle Excess Insurance. When he was driving out of the parking lot, he accidentally reversed his car into a concrete poll damaging the rear bumper and headlights.
    David returned the car to the car rental company and told them what had happened. After the car was assessed, the cost to repair the car was found to be $5,500. As David did not purchase any insurance, he had to pay the $5,000 (his excess amount) where the car rental company shoulders the extra $500. If he had purchased insurance, he would not have had to pay for the damage as he would have been covered.

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