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    Important Things to Know About Your Financial Liability

    Car Rental Liability Insurance banner

    It can be difficult to work out the amount of money you will be liable for when you hire a car in Australia. There are a few factors that influence your financial liability, and you should be aware of the excess amount on your rental car. VroomVroomVroom have put together a quick guide of key factors you should be aware of before you book your car rental.

    Higher liability for luxury vehicles

    It is important to consider your “excess” amount. This can be referred to as the Damage Liability Fee or the Rental Vehicle Excess. These terms are used to define the amount of money you can be charged for any damage caused to your rental car while it is in your possession. If you know your financial liability before picking up your car, you can take steps to reduce the amount of money you risk paying.

    Check your rental agreement for details of your excess liability. The standard liability for vehicles is between $4,000 and $6,000. However, if you are hiring a prestige vehicle or a 4WD, your liability amount may be in excess of $8,500.

    Excess amount can depend upon a number of factors

    The excess amount can be effected by a number of different factors. Not only can it depend on what type of vehicle you are hiring, it can also be impacted by which rental car company you are hiring from and where you collect the car. Each rental company has unique terms and conditions, and it is important that you are familiar with the liability amounts from your chosen company.

    Vehicles hired from premium locations can have a higher excess liability. Airport depots often have a surcharge that increases your liability amount.

    You can reduce your financial liability

    The purchase of any insurance or excess reduction products is completely optional. Car rental companies offer excess reduction products when you collect your hire car. However, a lot of the time the products offered by car rental companies have exclusions such as windscreens, tyres, underbody and overhead damage. This cover also often excludes single vehicle accidents.

    Alternatively you can purchase third-party rental excess insurance to increase what kinds of damage you are covered for. 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.

    It can be tricky to work out your vehicle excess and which insurance product you require. If you need more information or have any questions feel free to contact our customer care team.

    Watch this video to find out how much you risk paying when renting a car in Australia.