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Rental Vehicle Insurance Excess Cover

Having rental car excess insurance cover on your travel insurance policy can offer some protection in the event of an accident or damage to your rental vehicle.

What is Rental Vehicle Insurance Excess? 

Rental Vehicle Insurance Excess is the out-of-pocket expense that your rental vehicle insurance company will charge you when you make a claim on your rental vehicle insurance policy. For example, if your rental car is damaged in an accident while you’re driving during your trip, instead of paying the cost to repair the vehicle, which can be in the hundreds or thousands of dollars, you would pay the rental vehicle excess, and the hire car insurance company covers the rest. 

The amount of rental vehicle excess will vary between companies and can be up to a few thousand dollars. This can prove to be expensive should the rental car be damaged, and especially if you’re only renting the vehicle for a few days. 

Rental vehicle companies do provide you with an option to reduce the amount of this excess, however the cost of this can also be expensive. The alternative to reducing the amount of your rental car excess with your car rental company is to add Rental Vehicle Insurance Excess cover to your travel insurance policy.

How Does Rental Vehicle Insurance Excess Work at Fast Cover? 

At Fast Cover, rental vehicle insurance excess reimburses you for the rental vehicle excess component that you have to pay your rental vehicle company should your rental car be damaged in an accident while you are driving or damaged or stolen while in your custody.  You would still need to purchase the appropriate car rental insurance for your rental car, as the rental vehicle insurance excess cover only provides cover for the rental car excess component of your rental car insurance. 

For overseas travel, rental vehicle excess cover is not a stand-alone insurance product at Fast Cover, it needs to be purchased as an add-on to your overseas travel insurance policy. Vehicle rental excess insurance is automatically included with your domestic travel insurance policy. 

Below is more info on how rental vehicle insurance excess works at Fast Cover:

  • When you buy your overseas travel insurance policy, you can add Rental Vehicle Insurance Excess cover for either up to $8,000 with the Standard Saver, Comprehensive, Snow Sports Plus or Frequent Traveller Saver policies by paying an additional premium. For domestic travel insurance policies, the rental car excess insurance cover of up to $5,000 is automatically included as a benefit.
  • If you have chosen to add rental car excess insurance cover to your travel insurance policy, you could claim the cost of the rental car insurance excess or the cost of repairing the rental vehicle, whichever is the lesser, back from your travel insurance company. So you have the option to choose to not pay that additional premium to the rental car company. 
  • In the event of an accident or damage to your rental car, you would need to make a claim on your hire car insurance and you will also be liable for the rental car excess on that insurance. If your rental car is damaged, you should advise your rental car company as soon as you can. You should then: 
    • Submit a claim with us, and our Claims team will assess your claim and advise you on what you need to do, or 
    • Put a claim in with your car rental insurance company, pay the rental car excess and then submit a claim for that rental car excess to us.

As each individual’s circumstances are different, we will assess each claim on a case by case basis and in accordance with your specific circumstances, policy terms and Certificate of Insurance.

How Much Am I Covered for Under the Rental Vehicle Excess Benefit?

 

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Overseas Travel

You can add up to $8,000 cover for the rental vehicle insurance excess component of the rental vehicle insurance that you have with your car hire company when you purchase the following policies: 

It is important to note that you cannot add Rental Vehicle Insurance to Basics policies.

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Domestic Travel

If you are hiring a car to travel within Australia, car rental excess insurance of $5,000 is automatically included with all our Domestic Plus policies.

What Does Rental Vehicle Excess Cover Include? 

Fast Cover’s Rental Vehicle Insurance Excess benefit provides cover for the excess that you are liable to pay on your rental vehicle insurance, up to the amount you have chosen and as specified on your travel insurance policy certificate. If your rental vehicle is damaged, and the damage is something that you are able to claim for on your car rental insurance, you would be able to claim on your Fast Cover policy for the rental car insurance excess or the cost of repairing the vehicle, whichever is the lesser. 

If you’re in an accident, you can also claim up to $500 for the cost of returning your hire car to the nearest rental car depot if a medical practitioner certifies in writing that you are unfit to return the rental car yourself.

Car Thief
What happens if my rental vehicle is stolen?

If your rental vehicle is stolen, you should report the theft as per the rental car insurance policy that you have with the hire car company. If you have purchased the rental vehicle insurance excess cover add-on, you can then submit a claim with us for the rental vehicle insurance excess that you have paid to the hire car company.

Car Crash
What happens if you damage a rental vehicle?

If your rental vehicle is damaged, you should report the damage as per the rental car insurance policy that you have with the rental car company. If you have purchased the rental vehicle insurance excess cover add-on, you can then submit a claim with us for the rental vehicle insurance excess that you have paid to the hire car company. 

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Does Rental Vehicle Excess Cover apply to valuables?

Rental Vehicle Excess cover only covers the EXCESS component of your car rental insurance.

However, our overseas Comprehensive, Standard Saver, Snow Sports Plus and Frequent Traveller Saver policies which offer the car rental excess insurance option up to $8000, also includes certain cover for your luggage and personal effects up to $15 000 under a separate benefit. 

Our Domestic Plus policies have rental vehicle excess cover of $5000 and provide certain luggage cover up to $7500. 

If your belongings are stolen during daylight hours from your locked rental car and you have complied with the conditions of cover as specified in our Product Disclosure Statement (PDS), the Luggage and Personal Effects benefit provides cover up to $200 for each item and a maximum of $2000 in total for all stolen items. This limit applies even if you have purchased Specified High Value Item cover for some of your belongings and regardless of the type of policy that you have purchased for your holiday.

What is Excluded from the Rental Vehicle Excess benefit? 

It’s also important to understand what is excluded from the rental car excess benefit. Some examples of situations which may not be covered include (but are not limited to): 

  • If the rental vehicle was being driven by someone who is not listed as an authorised driver in the rental car contract and on your Certificate of Insurance. 
  • If the rental vehicle was being operated while under the effect of alcohol, drugs or in a way that is against the law of the country that you were driving it in. 
  • If you were operating the rental vehicle without a licence for the purpose that you were using it. 
  • If the vehicle does not meet our definition of a rental vehicle in accordance with the Product Disclosure Statement (PDS). Vehicles NOT covered (but is not limited to) are motorcycles, mopeds, scooters, trailers, trucks, golf buggies and leased cars 
  • If you do not take out appropriate rental car insurance with your car hire company. The rental car excess benefit does not replace the rental car insurance that you are required to take out with your rental vehicle company. This only covers the excess component of that insurance up to the amount specified on your travel insurance policy. 
  • If the claim is for something that is not covered under your rental car insurance. 

What Types of Vehicles are Covered by Rental Vehicle Insurance Excess?

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The rental vehicle must be rented from a licensed motor vehicle rental company (including vehicles rented from peer-to-peer carsharing platforms) and can be a: 

  • Sedan, hatchback or station wagon 
  • Four-wheel drive 
  • Mini bus/people mover 
  • Campervan or motorhome that does not exceed 4.5 tonnes 
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The following are NOT considered a rental vehicle and you cannot be covered for rental car excess insurance for these vehicles: 

  • Motorcycles 
  • Scooters 
  • Mopeds 
  • Trailers 
  • Trucks 
  • Golf buggies 
  • Campervan or motorhome exceeding 4.5 tonnes

Are Scooters and Motorcycles Also Covered by Rental Vehicle Excess Cover? 

Scooter and motorcycles are NOT covered by the rental vehicle excess insurance cover. You should check with the company that you are hiring your scooter or motorcycle from, to see the type of scooter or motorcycle insurance they are able to offer. 

If you are riding a motorcycle, moped or scooter overseas, you will need to take out the Motorcycle Pack to have medical cover if you are injured while riding a motorcycle, moped or scooter. There is no cover for the motorcycle, scooter or moped itself. 

Will I Be Covered If I Drive On An Unsealed Road? 

You should check to see if driving on an unsealed road is covered under the vehicle rental agreement or car rental insurance policy that you have with your hire car company. 

Vehicle rental excess insurance provides cover for the EXCESS component of your rental car insurance policy only. If there is cover for driving on an unsealed road under your car rental agreement or your rental car insurance policy, and you have added the car rental excess insurance add-on to your travel insurance policy, you can claim the car rental excess insurance from that travel insurance policy. 

Why Should I Consider Rental Vehicle Excess Cover? 

If you’re travelling overseas or doing a road trip in Australia and planning on hiring a rental vehicle, rental vehicle excess cover can save you money if your rental car is damaged in an accident or is stolen while in your custody. Below are some reasons why you should consider if rental vehicle excess cover is right for you. Keep in mind, any advice is general advice only and does not take into account your individual objectives, financial situation or needs. Consider the PDS as eligibility criteria, policy terms, conditions, exclusions and limits apply.  

  1. You can choose your preferred level of rental vehicle excess cover to suit your needs. This flexibility means you’re paying for car rental excess insurance cover only if you need it. You can choose rental car insurance cover up to $8000. 
  2. The cost to add rental vehicle insurance excess cover on your overseas travel insurance policy may be significantly less than the cost of purchasing excess reduction from the vehicle rental desk. 
  3. Authorised drivers listed on your travel insurance and your car rental insurance policy can claim for rental vehicle insurance excess. 
  4. You can claim as many times as you need to, up to the Rental Vehicle Insurance Excess limit that you have purchased. 
  5. Whether you’re renting a sedan or minibus on your travels, rental car excess insurance cover can give you a level of cover for the rental vehicle excess component of your rental vehicle insurance with a car hire company if the rental car is damaged in an accident. 

Do You Really Need Insurance on a Rental Car?

Car rental excess insurance provides cover for the EXCESS component of your car rental insurance policy only. If you don’t have rental car insurance and you damage the rental car, you would be liable to pay for the damage yourself, and you would not be able to claim rental vehicle insurance excess with your travel insurance policy.

What Documents do I Need to Make a Rental Vehicle Excess Claim? 

If you need to make a claim for the car rental excess that you have incurred, it’s important to save as much documentation related to the incident as possible. You must provide a copy of: 

  • your rental agreement;  
  • the authorised driver’s driving licence;  
  • the original inspection report and/or the incident/damage report;  
  • the repair invoice and/or quote;  
  • a written statement from the licensed rental company confirming you are liable to pay the excess.  

If we require more information to help us assess your car rental excess claim, we will let you know. 

As each individual’s circumstances are different, we will assess each claim on a case by case basis and in accordance with your specific circumstances, policy terms and Certificate of Insurance.

Rental Vehicle Excess Insurance FAQs

Overseas Travel insurance does not automatically include rental vehicle insurance excess cover. You can choose to cover your rental vehicle insurance excess up to $8000 and pay the additional premium. 

If you’re travelling around Australia, our Domestic Plus Policies automatically include rental vehicle insurance excess of $5000. 

Eligibility criteria, policy terms, conditions, exclusions and limits apply. Consider the PDS prior to deciding on which policy is right for you and your needs.  

As each individual’s circumstances are different, we will assess each claim on a case by case basis and in accordance with your specific circumstances, policy terms and Certificate of Insurance.  

Rental vehicle insurance cost will depend on the company that you are purchasing it from. 

At Fast Cover, the cost of car rental insurance excess depends on the type of overseas holiday (including but not limited to, your age, destination and duration) you are taking and the level of cover (up to $8000) that you choose to add on to your travel insurance policy. 

Rental car excess insurance of $5000 is automatically included with our Domestic Plus travel insurance. 

Eligibility criteria, policy terms, conditions, exclusions and limits apply. Consider the PDS prior to deciding on which policy is right for you and your needs. 

You can claim on your Rental Vehicle Excess benefit as many times as you like up to the maximum value ($5000 or $8000) that you have chosen. 

Cover is subject to the policy terms, conditions, limits and exclusions in the Product Disclosure Statement (PDS).

Yes, Rental Vehicle Excess cover does NOT take the place of car rental insurance. You still need to buy car rental insurance. The Rental Vehicle Insurance Excess cover ONLY covers the 'Excess' component of your car rental insurance up to a maximum of your nominated amount. 

Eligibility criteria, policy terms, conditions, exclusions and limits apply. Consider the PDS prior to deciding on which policy is right for you and your needs.  

As each individual’s circumstances are different, we will assess each claim on a case by case basis and in accordance with your specific circumstances, policy terms and Certificate of Insurance. 

Rental vehicle excess benefits apply to cars hired around the world. Whether it’s a year-long adventure in Canada or a short weekend road trip in Australia, our rental car excess benefits will apply to rental vehicles, provided they meet the conditions as set out in our Product Disclosure Statement (PDS). 

Eligibility criteria, policy terms, conditions, exclusions and limits apply. Consider the PDS prior to deciding on which policy is right for you and your needs. 

If the damage to your rental vehicle is less than the rental vehicle excess you are liable for, we may cover the cost of the repairs to the rental vehicle instead of the rental vehicle insurance excess. 

You should submit a claim with us and include the following documents: 

  • your rental agreement; 
  • the authorised driver’s driving licence; 
  • the original inspection report and/or the incident/damage report; 
  • the repair invoice and/or quote; 
  • a written statement from the licensed rental company confirming you are liable to pay the excess.  
  • Make a Claim now. 

Any advice is general advice only and does not take into account your individual objectives, financial situation or needs. Consider the PDS as eligibility criteria, policy terms, conditions, exclusions and limits apply.  

As each individual’s circumstances are different, we will assess each claim on a case by case basis and in accordance with your specific circumstances, policy terms and Certificate of Insurance.

Travelling together 

Cover is available for dependant children if your dependant will be travelling with you for 100% of the trip, meets the definition of "dependant’ in our policy wording, and they are listed on both the rental vehicle agreement and Certificate of Insurance with us. 

Not travelling together 

If your dependant is taking a separate rental car, and not going to be with you for 100% of the trip, they would need to take out a separate single policy to have cover.  

Note: 

  • For your dependant to have cover under your policy they need to be travelling with you for 100% of the time, and meet other criteria listed under the definition of 'dependant', otherwise they do not qualify as a 'dependant' for the purposes of our travel insurance policies. 
  • Your dependant must also comply with the Australian licencing requirements, the terms and conditions of the rental agreement and have a Provisional or higher driver's licence valid for driving in Australia, for the same class of motor vehicle, regardless of the local laws and if required, a licence valid for the country that they are driving in. 

Cover is subject to the policy terms, conditions, limits and exclusions in the Product Disclosure Statement (PDS). 

As each individual’s circumstances are different, we will assess each claim on a case by case basis and in accordance with your specific circumstances, policy terms and Certificate of Insurance. 

Our policies provide cover for both drivers provided that they are both listed on the policy and the rental vehicle agreement with the rental vehicle company. 

Note: 

  • You only have this cover if you have paid the additional premium to add this cover to your policy. 
  • You both must have an Australian Provisional or higher driver's licence for the same class of motor vehicle, regardless of the local laws and if required, licence valid for the country that you are driving in. 

As each individual’s circumstances are different, we will assess each claim on a case by case basis and in accordance with your specific circumstances, policy terms and Certificate of Insurance. 

Cover is subject to the policy terms, conditions, limits and exclusions in the Product Disclosure Statement (PDS).

You can be covered under the Rental Vehicle Insurance Excess benefit provided you: 

  • Add the Rental Vehicle Insurance Excess benefit to your policy and pay the additional premium, 
  • Are listed as a driver on the rental car agreement,  
  • Are listed as a policy holder on your certificate of insurance with us, and 
  • Hold a Provisional or higher driver's licence for the same class of motor vehicle, regardless of the local laws and if required, licence valid for the country that you are driving in. 

As each individual’s circumstances are different, we will assess each claim on a case by case basis and in accordance with your specific circumstances, policy terms and Certificate of Insurance. 

Cover is subject to the policy terms, conditions, limits and exclusions in the Product Disclosure Statement (PDS).

The rental vehicle excess benefit is specifically excluded under the Motorcycle Pack.  

If you require cover for your motorcycle, you should check with the company that you are hiring the motorcycle from, or a specialist insurance company. 

Note:  

  • You are not automatically covered for riding or being a passenger on a motorcycle, moped or scooter. To be covered for riding a motorcycle, moped or scooter, you need to take out the Motorcycle Pack. 

Eligibility criteria, policy terms, conditions, exclusions and limits apply. Consider the PDS prior to deciding on which policy is right for you and your needs.  

As each individual’s circumstances are different, we will assess each claim on a case by case basis and in accordance with your specific circumstances, policy terms and Certificate of Insurance. 

Trailers are not included under the Rental Vehicle definition and therefore are not included under the Rental vehicle insurance excess benefit. 

A 'Rental Vehicle' must be a hatchback, sedan, station wagon, four wheel drive, mini bus/people mover or a campervan/motorhome that does not exceed 4.5 tonnes. 

Eligibility criteria, policy terms, conditions, exclusions and limits apply. Consider the PDS prior to deciding on which policy is right for you and your needs.  

As each individual’s circumstances are different, we will assess each claim on a case by case basis and in accordance with your specific circumstances, policy terms and Certificate of Insurance. 

Trucks are not covered by our rental vehicle insurance excess as they do not meet the definition of a rental vehicle under our PDS.  

Eligibility criteria, policy terms, conditions, exclusions and limits apply. Consider the PDS prior to deciding on which policy is right for you and your needs. 

Golf buggies are not covered under the Rental vehicle insurance excess benefit as they do not meet our definition of a rental vehicle under the PDS.  

Eligibility criteria, policy terms, conditions, exclusions and limits apply. Consider the PDS prior to deciding on which policy is right for you and your needs.  

As each individual’s circumstances are different, we will assess each claim on a case by case basis and in accordance with your specific circumstances, policy terms and Certificate of Insurance. 

Our policy definition of Rental Vehicle, does not include caravans, which are intended to be towed behind a vehicle. 

Our rental vehicle insurance excess benefit provides cover for the excess component of the rental vehicle insurance for campervans or motorhomes that do not exceed 4.5 tonnes.  

Eligibility criteria, policy terms, conditions, exclusions and limits apply. Consider the PDS prior to deciding on which policy is right for you and your needs.  

As each individual’s circumstances are different, we will assess each claim on a case by case basis and in accordance with your specific circumstances, policy terms and Certificate of Insurance. 

Campervans and motorhomes are included under the Rental Vehicle definition in the policy, and therefore included under the Rental Vehicle Excess benefit, as long as it does not exceed 4.5 tonnes and is rented from a licensed motor vehicle rental company, including peer-to-peer carsharing platforms. 

Note: 

  • You only have Rental Vehicle Insurance Excess cover if you have paid the additional premium to add this cover to your policy for international policies. 

Cover is subject to the policy terms, conditions, limits and exclusions in the Product Disclosure Statement (PDS). 

As each individual’s circumstances are different, we will assess each claim on a case by case basis and in accordance with your specific circumstances, policy terms and Certificate of Insurance.

Rental vehicle insurance excess cover extends to campervans that do not exceed 4.5 tonnes, rented from a licensed motor vehicle rental company including peer-to-peer carsharing platforms. 

Eligibility criteria, policy terms, conditions, exclusions and limits apply. Consider the PDS prior to deciding on which policy is right for you and your needs.  

As each individual’s circumstances are different, we will assess each claim on a case by case basis and in accordance with your specific circumstances, policy terms and Certificate of Insurance. 

Rental vehicle excess insurance applies to a sedan, hatchback or station wagon, four-wheel drive or minibus/people mover, or a campervan/motorhome that does not exceed 4.5 tonnes, rented from a licensed motor vehicle rental company, including peer-to-peer carsharing platforms.  

Eligibility criteria, policy terms, conditions, exclusions and limits apply. Consider the PDS prior to deciding on which policy is right for you and your needs.  

As each individual’s circumstances are different, we will assess each claim on a case by case basis and in accordance with your specific circumstances, policy terms and Certificate of Insurance. 

Convertibles are generally considered a type of sedan which meet our definition of 'Rental Vehicle’ in the policy wording. 

Note: 

  • You only have Rental Vehicle Insurance Excess cover if you have paid the additional premium to add this cover to your policy 

Eligibility criteria, policy terms, conditions, exclusions and limits apply. Consider the PDS prior to deciding on which policy is right for you and your needs.  

As each individual’s circumstances are different, we will assess each claim on a case by case basis and in accordance with your specific circumstances, policy terms and Certificate of Insurance. 

Yes, Rental Vehicle Excess cover does NOT take the place of car rental insurance. You still need to buy car rental insurance. The Rental Vehicle Insurance Excess cover ONLY covers the 'Excess' component of your car rental insurance up to a maximum of your nominated amount. 

Eligibility criteria, policy terms, conditions, exclusions and limits apply. Consider the PDS prior to deciding on which policy is right for you and your needs.  

As each individual’s circumstances are different, we will assess each claim on a case by case basis and in accordance with your specific circumstances, policy terms and Certificate of Insurance. 

Things you need to know

^ Price as at 27/10/2024 compared to the price calculated today for this policy.

* See Product Disclosure Statement for full terms and conditions and exclusions and limits that apply.