Rental Car Insurance in Australia: Daily AU Car Hire Excess Insurance from US$ 6.49


Embarking on an Australian road trip is an exciting adventure, but it’s essential to have the right insurance coverage for your rental vehicle to ensure a smooth and worry-free journey. Car rental insurance protects you from any property damage that is caused while you are driving a rental car in Australia.

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Rental Car Insurance Australia Coverage Chart

Warranty What does it cover? How much does it cover?
Damage due to collision or theft Reimbursement of the deductible applied by the rental company as a result of accidental damage caused to the vehicle, including tires, windshield, underbody and other parts $ 2,500 - $ 4,500
Improper Fuel Use Charges Tank emptying costs and vehicle towing, when the wrong fuel is refueled into the vehicle by mistake. $ 500
Loss or theft of keys In the replacement of lost or stolen keys, including lock and locksmith costs. $ 500
Towing charges Covers the tow truck of the rented car in the event of a breakdown or accident. $ 500
Vehicle return charges If as a result of an accident or illness with hospitalization you cannot return the vehicle. $ 250
Personnal belongings In case your baggage, personal belongings or valuables are taken, permanently lost or unintentionally damaged during your trip $ 500
Hotel expensses If You are unable to use your rental vehicle as a result of it being stolen or damaged $ 150

Vehicle rental excess insurance


What is insured?

  • Excess reimbursement up to US$ 4,500
  • Damage Waiver (LDW) up to US$ 4,500
  • Towing charges up to US$ 500
  • Improper fuel charges up to US$ 500
  • Loss or theft of keys up to US$ 500
  • Vehicle return charges up to US$ 250
  • Personnal belongings up to US$ 500
  • Hotel expenses up to US$ 150

What is not covered?

  • Damage to the vehicle or property of a third party
  • Damage caused by a person not authorized to drive the rented vehicle
  • Mechanical failure of the rented vehicle
  • Loss or damage to the vehicle’s interior that is not related to a collision.
  • Parking tickets or fines, traffic violations and such
  • Any loss that occurs outside the validity of the insurance
  • Any rental contract of more than 45 days

Is the coverage subject to any type of restrictions?

  • Any claim resulting from a direct breach of any of the terms and conditions of your rental agreement
  • Any person under 21 or above 84 years of age
  • Rentals that begin or end outside the insurance period, as indicated on the insurance certificate
  • The policyholder must be designated as the main driver in the rental agreement
  • The maximum amount that can be claimed for a single loss is US$ 4,500
  • Damage to Recreational vehicles (RVs) / Motorhomes / Campervans (unless you have purchased a specific cover)
  • Damage to vehicles provided by a peer-to-peer vehicle rental service platform or a subscription vehicle service is excluded (unless purchased specific coverage)..

Where do I have coverage?

  • Anywhere in the world except trips in, to or through Afghanistan, Cuba, Congo, Iran, Iraq, Ivory Coast, Liberia, North Korea, Myanmar, Russia, Sudan, Syria, Ukraine and Zimbabwe

What are my obligations?

  • When applying for your policy, you must exercise reasonable care to honestly and carefully answer any questions asked.
  • You must take all reasonable steps to avoid or reduce any loss (for example, you must report accidents or other damage to your rental company nd to CarInsuRent as soon as reasonably possible).
  • If you make a claim, you must provide the documents and other evidence that claims handlers need to process your claim.
  • You must repay any sums to which you are not entitled (for example, if we pay your claim for an accident which is later compensated by a third party).
  • You must not violate the terms of the rental agreement.

When and how do I make the payment?

  • The premium must be paid in full before the policy start date. Payment can be made by credit or debit card or PayPal through our website

What is the start and end date of coverage?

  • As set out in the insurance certificate, as agreed in the application process, your policy will cover you from the start date and time of your booking to the end date and time of your booking.

How do I cancel the contract?

  • You can cancel your policy before the start date or within 14 days from your purchase through our customer service team.

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How Does Car Rental Insurance Work When You Rent a Car in Australia?

With numerous options available, understanding rental car insurance in Australia can be a complex task. In this guide, we will unravel the various coverage options, providing you with valuable insights to help you make an informed decision on securing the most suitable protection for your rental vehicle.

According to Australian Laws, Collision Damage Waiver (CDW) and Theft Protection (TP) are mandatory. Thus, when you rent a vehicle in Australia, you will note that the price of the rental includes CDW and LDW insurance.

Even in cases when you are not “at fault” in an accident involving another car, rental firms still charge you. When an accident happens in Australia, the driver who is deemed to be “not at fault” is exempt from paying any damages. Nevertheless, rental firms often do not return the money after the conclusion of the investigation (which might take many months) and deduct your entire excess. In the event that you weren’t at “fault”, with CarInsuRent protection we fully reimburse you and make sure you don’t lose money.

I wholeheartedly recommend CarInsuRent. Their response time was exceptionally prompt. They requested standard documentation and photos of the damage, and I received payment directly to my PayPal account almost immediately.

What is CDW / LDW insurance?

In case the rented vehicle gets stolen or damaged while it is under your custody, you have an obligation to pay for the repairs needed. As we mentioned above, the rented vehicle in Australia is already insured in order to reduce your liability. This insurance is also known as Collision Damage Waiver (CDW). CDW lowers the liability from the actual amount of the damage, to an agreed upon amount which is called “excess”. This means that if the car you rented gets damaged while in your custody, you go from full value down to around AUD$1,500-5,900.

Rental Car Excess Insurance Australia

As you understand, the question is not if you really need insurance on a hire car in Australia or should you take out extra insurance when renting a car in Australia?

The right question that you should ask yourself is – do I need rental car excess insurance for rental car?

If you are not a risk taker, then the answer to these questions is – yes!

As you already understood, while rental vehicles are insured in Australia, you still have to pay the excess in the event that the vehicle is damaged or stolen. However, there is a way that allow you to reduce your excess to zero! This is where car hire excess insurance comes into place.

What is Rental Vehicle Excess Cover?

When you rent a car in Australia, rented car excess insurance, also known as car hire excess waiver insurance, is an optional insurance policy that protects you against the aforesaid excess charges that may apply in the event your rented car is stolen or damaged. If you have rental car excess insurance and the car you rented gets damaged while in your custody, you could file a claim and your insurer would reimburse you for the calculated damage costs (typically AUD$1,500-5,900 – depending on your chosen level of coverage). The coverage provided by the car rental companies excludes certain sorts of damage. For example, some rental companies do not cover things like headlight and underbody damage, fractures and chips in the windscreen, tire replacements, and punctures.

CarInsuRent car hire excess insurance starts from as low as $6.49 per day* to $94.90 for an annual policy. Our policies covers the excess on damage and theft up to €2,500 and provide full protection that Includes single vehicle damage, roof and undercarriage damage, auto glass and widescreen damagetowing expenses, misfuelling, loss of car key and tire damage. We cover multiple drivers between the ages of 21 and 84 years.

Insurance Options Comparison: CarInsuRent vs. Cost at Counter

We’ve built a global business around saving customers more than 70% versus equivalent coverage at the rental desk. We aim to pay claims within 5 business days, so you can save your money for a sunbath with kangaroos at lucky bay or hot air balloon above Canberra.

Car Rental Company Mandatory Insurance in Australia – Collision Damage Waiver (CDW) + Theft Protection (TP) Avg. Super Collision Damage Waiver Cost at Counter* Avg. Insurance Deductible at Counter* Avg. Cost for Rental Car Excess Insurance with CarInsuRent Cost of Deductible with Zero-Excess from CarInsuRent
Avis Included at the rental price AUD$ 45.42 AUD$ 5,445 US$ 6.49 per day or US$ 94.90 for annual coverage $0 USD
Budget Included at the rental price AUD$ 45.42 AUD$ 5,445 US$ 6.49 per day or US$ 94.90 for annual coverage $0 USD
Dollar Included at the rental price AUD$ 45.00 AUD$ 5,900 US$ 6.49 per day or US$ 94.90 for annual coverage $0 USD
Enterprise AUD$ 26.40 per day AUD$ 11.31 AUD$ 1,650 US$ 6.49 per day or US$ 94.90 for annual coverage $0 USD
Europcar Included at the rental price AUD$ 55.82 AUD$ 6,238 US$ 6.49 per day or US$ 94.90 for annual coverage $0 USD
Hertz Included at the rental price AUD$ 46.00 AUD$ 5,900 US$ 6.49 per day or US$ 94.90 for annual coverage $0 USD
National Included at the rental price AUD$ 40.00 AUD$ 1,650 US$ 6.49 per day or US$ 94.90 for annual coverage $0 USD
Sixt AUD$ 31.35 per day AUD$ 8.25 AUD$ 880 US$ 6.49 per day or US$ 94.90 for annual coverage $0 USD
Thrifty Included at the rental price AUD$ 45.00 AUD$ 5,900 US$ 6.49 per day or US$ 94.90 for annual coverage $0 USD


*Averages are based on Super Collision Damage Waiver costs for a 7-day rental of a standard car class (July 1st – July 7th). The Australian car rental insurance rates listed here are subject to change by the car rental companies without notice. For the most up-to-date pricing information, we encourage you to request a free online quote prior to booking.

Car rental companies sell Roadside Assistance Cover (“RAC”), which pays for roadside expenses like fuel, towing, and key lockout. Car Rental companies charge between AUD$ 10.50 and AUD $19.45 per day for RAC. CarInsuRent’s car hire excess protection for rental vehicles offers the same coverage at a 70% lower cost!

Should I get Car Hire Excess Insurance at the Counter?

Before you decide if there’s a need to purchase car hire excess insurance in Australia to eliminate the excess in case of damage to the rented car, check what is the typical excess applicable with the rental company under the standard CDW insurance they provide.

The rental company may offer you to purchase its own rental car excess insurance, also known as Super CDW, at a high fee of course. One thing to keep in mind is that Super CDW offered by the car rental company cost more than car excess insurance in Australia offered by independent 3rd party companies, and cover less than the car hire excess insurance policies provided by 3rd party companies in Australia. Taking Super CDW from the rental company could easily increase your overall car rental cost by 30 to 40% and in some cases even double the price.

CarInsuRent is considered as one of the best rental car insurance providers in Australia and offer car rental excess insurance policies up to excess of AUD$ 6,300 (US$ 4,500).

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How Does Rental Vehicle Excess Cover Work?

Our Australian car rental excess waiver insurance is a reimbursement that covers your excess obligation when renting a vehicle. If the car gets damaged while in your custody, the rental company will calculate the cost of repair needed and charge your credit card up to your excess.

After the car rental company charged you for the loss or damage, you can file a claim on our website and, CarInsurent which is considered among the best car rental excess insurance in Australia,  will fully reimburse you the excess amount you were charged. In order to file a claim you need to provide certain documents. These documents include, inter alia, a copy of the rental vehicle agreement, a copy of the damage report given by the rental company, detailing each cost incurred and a copy of your credit card statement that reflects your payment for the claimed damages.

After we receive your claim, we might ask you to provide additional information, such as photographs of the damage that may help ensure that the charges are reasonable. Once we have all the relevant documents and information in hand, it may take up to 5 usually take less than a week to finalize and approve a claim.

Our coverage for Australia also cover your baggage and personal belongings. In the event that your rented vehicle was stolen, or if someone broke into the vehicle and stole your belongings, our vehicle excess waiver insurance will reimburse you for this as well.

Additional Tips That Australian Drivers Should Look Out and Take Note of When Renting a Vehicle in Australia:

Hopefully you will never experience the stress and emotional trauma of a damaged or stolen rental vehicle. We’ve gathered a few tips that will ensure that you have the right cover in place in case your rental vehicle is damaged or stolen:

  1. Rent only from licensed car rental companies – independent 3rd party rental car excess insurance providers in Australia will only cover your damage if you rented the vehicle from a licensed car rental company.
  1. Only named drivers should drive the rented car– your car hire excess insurance policy is only applicable to drivers who are listed on the rental agreement at the time of rental. Damage caused while the vehicle is driven by other parties will not be reimbursed.
  1. Your credit card limit– When you pick up the rented car, the rental car company will block an amount equal to your excess on your credit card. Always ensure that your credit card limit covers the excess you are liable to.
  1. Read the terms of the rental vehicle agreement – Your car hire excess insurance policy won’t cover you if you breach the terms of your rental agreement. We advise you to make sure you’re fully aware of your responsibilities when renting a car. For example, unless you hire a 4X4, taking your rental vehicle on an unsealed road would probably void your insurance coverage.
  1. Make sure your vehicle is covered – Your car hire excess insurance will not cover you if the type of vehicle you plan on renting is not eligible for cover. For example: there are special car hire excess policies for campervans and motorhomes as these types of vehicles are not covered by the “standard” car hire excess waiver insurance.
  1. Submitting your claim – you will need to provide copies of supporting documents in order for your car rental excess claim to be approved, These documents may include your driver’s license, your rental vehicle order/agreement, check-in and check-out reports, a repair bill and a credit card statement reflecting the excess you paid.
  1. Car Rental Excess differ from make and model – Sometimes the car rental company will offer you to upgrade your rented vehicle free of charge. Take note that repair costs can vary from make and model and make sure that your car excess insurance policy in Australia, covers you following such upgrade. For example, the excess for luxury vehicles might be higher than regular sedans.
  1. Take photos of the rental vehicle – At the time of pickup and drop-off, record pictures and videos of the car. During the claim process, we’ll ask you for these as well as specifics regarding any unjustified excess fees your rental business may have charged you. To prevent hefty excess fees, take the effort to document any prior damage and list it in your rental vehicle agreement.
  1. Decline the insurance the rental office offers you – While the basic collision damage waiver that the vehicle rental provider offers is a must, if you bought rental car excess insurance from us, you can simply decline the Super CDW offered by the rental car company.

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Frequently asked questions

Does a rental car come with insurance?

Many people ask this question – “are rental cars insured?” If you are renting a car in Australia – the answer is yes. However, you should keep in mind that you are still liable for the “excess” in the event of damage or the car is stolen.

What happens if you damage a hire car?

When a hire car is damaged, you are liable for the repair costs up to the “excess”. You are also liable for “loss of use” charges that cover the potential revenue lost when the vehicle is off the road for repairs. CarInsuRent car hire excess insurance for Australia will fully cover these costs. We encourage your to read the car hire excess insurance Australia reviews posted on our website and at TrustPilot.

Are scooters and motorcycles covered under rental car excess cover?

Most policies are applicable only to motorcars but exclude coverage for motorcycles. Study the contract carefully before leaving the rental office, ensuring that you have checked the optional extras.

If I have car hire excess cover, do I need to purchase the additional cover offered by the car rental company?

The rental vehicle excess waiver insurance provided by CarInsuRent, which is considered among the best car rental excess insurance in Australia, is an alternative to car rental insurance with no deductible being sold by rental firms and you don’t need to buy other insurance plans to cover your rented vehicle.

What should I do if my rental car is stolen?

The first step is to immediately report the theft to the police and to the rental car company. Make sure that you get a copy of the report, as this is essential for insurance purposes (and maximize the chances of the vehicle being tracked down). As we stated, our car hire excess waiver policy cover your baggage and personal belongings, thus you should also inform the police if any of your valuables were in the vehicle when it was stolen so that they are included in the report.

Once you’ve notified the police, contact the car rental company, let them know what happened and ask for an alternative vehicle.

Keep copies of the police report and any receipts/valuations of your personal belongings that were in the vehicle when it was stolen. You will need these later when you file your claim for reimbursement.

What does third party Rental Vehicle Excess Cover in Australia include?

When you hire a car in Australia, the rental vehicle has CDW, LDW and TP insurance. This insurance you cover you for any damage or even total loss of the car, but you may be liable for any excess payment due.

To reduce your excess liability to zero, you should purchase rental vehicle excess cover that covers accident-related damage, vehicle theft, as well as several kinds of damage usually not covered by vehicle rental firms, such as damage to the windscreen, tire, overhead or underbody and those that result from single-vehicle accidents. By purchasing rental car excess cover you reduce your excess liability to zero and get peace of mind while renting a vehicle in Australia.

What’s not covered by car rental excess insurance?

We encourage you to carefully read your insurance policy to find out exactly what is and isn’t covered. Check the list of exclusions – for example, Super CDW cover from the car rental company may not cover damage to windscreen, tyres and loss of keys (which are covered by CarInsuRent).

Your car hire excess insurance policy won’t cover you if you breach the terms of your rental agreement. We advise you to make sure you’re fully aware of your responsibilities when renting a car. For example, unless you hire a 4X4, taking your rental vehicle on an unsealed road would probably void your insurance coverage.

Who should get car rental excess insurance?

Anybody who rent a car in Australia should evaluate if the excess detailed in the rental agreement is more than he could afford (or is willing to pay). If you want to rent a car for your trip in Australia and want to drive stress free, knowing that the if the worst happened, excess would be paid by the 3rd party insurer, it might be worth taking out a car hire excess waiver insurance policy.

Is it necessary to buy rental car excess insurance in Australia?

When you rent a vehicle in Australia, the rental car has Collision Damage, Loss Damage and Theft protection insurance. This insurance you cover you for any damage, but you may be liable for any excess payment due.

Independent 3rd party car rental excess insurance cost up to 70% less than Super CDW offered by the rental company and will cover the excess charged by the rental car company for single-vehicle accidents, damage to the tires, windscreen, glass, underbody & roof as well as cover lost, stolen or accidentally damaged valuables, baggage, and personal belongings, all of which are not covered by the Super CDW offered by the rental company.

16 Responses

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  3. Remigio Dalcin says:

    In Canada we need 3rd party liability insurance. Is this included when one rents a car in Australia? Where can I get it.

    • Gil Farkash says:

      3rd party insurance is not mandatory in Australia and not all rental companies include it as part of the rental price.
      We encourage you to check this with your rental company.

      Have a safe trip.
      The CarInsuRent Team

  4. zoritoler imol says:

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    • Gil Farkash says:

      There is no problem on our end.
      I hope that you return and read our useful guides.

      All the best
      The CarInsuRent Team

  5. Hairstyles says:

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  6. Ah-Tuan Tan says:

    I could not enter the Pick up and Drop off date to get a quote in the Get Quote form.

    • Gil Farkash says:

      Dear Ah-Tuan Tan

      Thank you for taking the time to contact us.

      I don’t see any problem on our end.
      I encourage you to clear the cache from your browser, as this may resolve the issue.

      We will try to reach you by email for further assistance.

      All the best,
      The CarInsuRent Team

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  10. health news says:

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  11. Ellen says:

    I cannot find anything on the internet about getting personal liability insurance covering injury, medical expenses, desth, etc. tonself or others when renting a car in Australia. Where donInget such information?

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Frequently Asked Questions (FAQ)

Can I buy a plan for just one day?

Yes. Insurance for a single day is available.

Can I buy a plan for part of my rental only?

No. We provide a single journey plan. You are covered from the time you pick up the rental car up to the time you return it or on the last date written on your Certificate of Insurance, whichever comes first.

Can I buy a plan when I pick up my rental car?

No. You should purchase a policy before starting your travel.

Find the answers you’re looking for to the most frequently asked car hire insurance questions as well as other questions relating to our products and services.

Visit the FAQ page