Rental Car Insurance Excess Explained

If you’re renting a car overseas, you are probably a little bit anxious about the potential cost of a car park scratch or traffic accident – or whether to pay the car hire company an extra fee to reduce the cost if the unthinkable becomes a reality. Don’t worry and don’t pay twice, as getting the right travel insurance policy can cover you for these exorbitant rental car insurance excess payments if things don’t go to plan on the road – and you can go back to enjoying your holiday.

What is rental car insurance excess?

If you have car insurance here in Australia, you’ll know that you are up to pay the first few hundred dollars of your insurance claim to your insurer as per the excess on your policy. The same thing applies when you hire a car overseas, if you happen to have an accident you are required to pay an agreed value to the car hire company and this is set out in the terms and conditions of your car hire agreement. We aren’t talking a few hundred dollars anymore, as overseas rental car insurance excess can see you paying thousands of dollars to the car hire company in the event you have an accident. With the costs in the thousands, it is important that you have the right travel insurance in place so that if the unthinkable happens, you won’t have to put your hand in your pocket.


How do you protect yourself from these huge rental car insurance excess payments?

All car hire companies provide you with the option to pay an extra fee upfront to either reduce or remove the amount you have to pay in the event you damage the car. Whilst some of these fees are fair, some are very expensive and can set you back around an extra $40 per day. The good news is, you can protect yourself from these huge rental car insurance excess payments with travel insurance. The bad news is, some travel insurance policies require you to pay extra upfront if you wish to insure your rental car excess. There are even some policies available just for rental car insurance excess that see you wind up paying up to $15 extra per day just for this benefit. This is unnecessary, as a good comprehensive travel insurance policy that covers the usual medical costs, lost luggage and much more – will include rental car insurance excess cover at no extra cost. This means you can avoid paying the car hire company any extra money to reduce the insurance excess and take advantage of the free cover that’s included on the travel insurance policy that you’ve already purchased for the other necessary benefits.

Free $4,000 rental car insurance excess cover¹

Exchange Now can provide you with one fully comprehensive travel insurance policy that gives you unlimited medical and dental cover, a huge range of luggage, cancellation and amendment benefits plus $4,000 rental car insurance excess cover automatically included. This means one policy for all your travel insurance needs and no extra car hire costs. It’s important to have peace of mind that you know exactly what you are covered for so if you are overwhelmed by any terms or conditions, contact an Exchange Now insurance specialist for further information.

Get 25% off fully comprehensive Cover-More Travel Insurance when you exchange your currency at Exchange Now

Exchanging some local cash before you depart is a must and at Exchange Now we don't just give you some of the best exchange rates and zero fees money exchange – we’ll give you 25% off your insurance policy at the same time. Check out our exchange rates, order your currency online and talk to our team about getting 25% off a policy when you collect your order in-store. 


¹Limits, exclusions and conditions apply. This is general advice only. We do not provide any advice based on any consideration of your objectives, financial situation or needs. Please refer to the Cover-More Comprehensive Product Disclosure Statement for full terms and conditions before you decide to purchase a policy.