Australia, New Zealand & the South Pacific - Car Rental Insurance Question-renting in Australia

I am seeking clarification on the insurance issue and coverage on rental vehicles in Australia. I have several questions I hope to be answered. I'll be visiting Australia in November, and I have several reservations with Europcar at various airport locations.

1. To start, if a reservation for a rental states that without additional insurance, I have a damage liability of $2,750.00 Now to clarify my understanding of this, I assume that if a Europcar rental was damaged, that the renter is only responsible for $2,750, correct?

2. However, if a damage collision involved another third party vehicle, is the renter still only responsible $2,750. Essentially, does the standard coverage included in a rental with damage liability up to $2,750 also include the other vehicle too? Or, does the $2,750 liability only apply to the Europcar vehicle, not the other vehicle? Therefore, is the renter responsible for full damage to the third party vehicle, and only $2,750 for the Europcar vehicle? Could you please clarify this issue/

3. Also, if a third party vehicle is involved in damage, what about the injuries to the occupants of the other vehicle? What is the liability in this situation?

I realize that Europcar offers insurance options to reduce the liabilities down to $0 or a lesser amount that the $2,750, but I still have confusion on the issues states above concerning liability to another vehicle as well as liability to injuries for occupants in the other vehicle. I just want to be well covered for my car rentals in Australia, but I also want to understand what I am being covered for.

Thank you

You are right on #1... #2 and #3, I don't know but would assume the worst case.

You would frankly be better off quizzing the issuer of the credit card with which you intend to pay for the rentals. They usually have some kind of intrinsic cover offer, which gets richer as the card gets more exclusive and often permits you to decline the rental agency's coverage -- but these vary wildly. The old Diners Club card used to have excellent wall-to-wall blanket cover for vehicle rentals, but it's long gone.

I have rented RVs in Australia a couple of times and I always spring for the full-whack, zero-liability cover (AU $45/day for a 25-foot truck-based vehicle). Don't want the worry of paying for tire punctures or windshield cracks, let alone running over a roo at dusk.

Paging futaris!

(Some local FTers have experience with Europcar and I think company-specific advice would be very helpful, from someone with experience dealing with this company.)

All Australian registered cars have inbuilt "third party" injury liability cover; the annual combined registration and insurance fees are quite high. ($600 per year)

Most major rental companies have third party property and vehicle insurance included with the rate. This is why rentals in Australia start with a much higher base cost than US rentals.

The $2750 figure mentioned is the Insurance Excess, payable in the event of damage to the car or other property. Once can purchase "Excess reduction cover" at a daily rate to reduce this excess to a lower level or even zero.

If you are hiring a car for more than one or two days, this excess reduction insurance can get quite expensive. It is often a better idea to ensure you have some form of travel insurance that covers such events.

If you are hiring a car for more than one or two days, this excess reduction insurance can get quite expensive. It is often a better idea to ensure you have some form of travel insurance that covers such events.



So where does this optional "travel insurance" come from? My auto policy says buy the local since out of US and CA they "might not have enough coverage". My TA offers ins for the cruise leg, but not for rental cars.

So where does this optional "travel insurance" come from? My auto policy says buy the local since out of US and CA they "might not have enough coverage". My TA offers ins for the cruise leg, but not for rental cars.

insuremytrip.com

Never buy travel insurance from your TA. Buy it online yourself for twice the coverage at half the price.

insuremytrip.com

Never buy travel insurance from your TA. Buy it online yourself for twice the coverage at half the price.Or use the insurance policy for a car that you own -- this varies by company but most (in the US) include coverage for rental cars on similar terms. This is by far the cheapest way, even if you have to upgrade your owned car insurance to get it.

Or use the insurance policy for a car that you own -- this varies by company but most (in the US) include coverage for rental cars on similar terms. This is by far the cheapest way, even if you have to upgrade your owned car insurance to get it.


I have rental car coverage for my personal auto policy. We are going to AU next year, have cars reserved through Hertz, called the agent to check coverage, she called back after checking: "your rental coverage is only in effect in US and CA. Strongly suggests purchasing local with rental car agency in country(s) I am renting in". Good company - "Met Life", safe, senior drivers, multi car, tied in with home owners, but if they tell me they aren't going to cover me I am paying for the extra. Now checking on health care - they said they will cover, just bring a stack of receipts.

Definitely inspect your car before receiving it.

Confirm if you can take the car in unpaved roads.

If you use a credit card that automatically insures you (i.e. Diners Card) make sure to decline / cross out all coverage. I know this is weird, but I can confirm this has been the process in the past.

If you use a credit card that automatically insures you (i.e. Diners Card) make sure to decline / cross out all coverage. I know this is weird, but I can confirm this has been the process in the past.

This is true for a rental in the US but make sure to check with your credit card company for exclusions before declining the coverage. IIRC Amex (and others) do not provide automatic rental car coverage for Australia, Ireland, and a few other countries.