Do I Need to Purchase Excess Reduction for my Car Hire?
No. Purchasing Excess Reduction or insurance when renting a car is not compulsory in Australia. It is an optional extra offered to you when the vehicle is collected. If there is damage to the vehicle, the car rental companies will charge the excess on the Rental Agreement, if any damage is identified at the return of the vehicle or soon after. Without insurance or damage waiver cover, you will have no further options other than to pay the full amount of the damage up the excess amount.
What is Excess Reduction?
Budget defines excess reduction as "a package designed to provide additional cover on top of the basic cover included in your quote." By taking out Excess Reduction, you are lowering the excess to *a certain amount or can be zero*, if the car is stolen or you have a bump or dent. Excess reduction offers peace of mind. Without this cover, the driver will be liable to pay an excess, regardless of who is at fault for any damage to the car.
Car rental companies offer excess reduction products, which customers can purchase directly at the counter. These products can reduce the amount of money a customer will be liable to pay in the event of any damage. When you have decided on the supplier, details are displayed at the top of their Terms and Conditions of rental “included in this quote”.
Is insurance included in the rate?
Note that basic insurance is included in the supplier rates, however, in the event of damage to the rental car – each supplier has a Damage Excess fee. The Damage Excess fee varies for each supplier and is around $4500-$8800 (higher for specialty/luxury fleet). This is the amount the supplier will charge (up to) if there is damage to their vehicle. Costs are covered after that Excess Damage fee amount.
In the event that there is damage to the vehicle, the supplier will charge up to the Damage Excess fee on the contract regardless of your own personal cover – you would then follow up your own claim. Note that excess Reduction will be explained in full when the vehicle is collected by the rental representative, as the contract is signed accepting or declining their Damage Fee Reductions. Your personal insurance circumstance is not taken into account until you make claim with them and it is processed. For more information about Car Hire Excess Insurance in Australia, click here.
Read more about picking up a rental car in Australia.