Australia, New Zealand & the South Pacific - Car Rentals and Insurance Options (and terminology) in Australia

We are coming from Canada and are used to renting cars in both Canada and USA.

What insurance coverage is automatic with the car rental, and what insurance coverage we should take? By the way, what is the Australian terminology for the various insurance options?

Of note, we have a Canadian AMEX Platinum card, so as per the AMEX agent, we can use the card for a complete collision damage waiver.

most rental companies in Australia include damage insurance but the deductible is quite high average is $3k.
you can take excess reduction coverage that will lower your deductible to a few hundred.
As for your amex coverage read over your insurance certificate. Some companies specifically exclude Australia in their rental car coverage. Since damage coverage is pretty much standard in Australian rental contracts you might have to specifically decline the coverage. My credit card actually says to write on the contract " i hereby decline loss damage insurance" in this sort of circumstance.
I would recommend you also read the Australian road rules hand book before driving there. You can find a copy with google. Apart from the obvious driving on the left there are some other differences between North American and Australian driving ie. turns on a red light.

most rental companies in Australia include damage insurance but the deductible is quite high average is $3k.
you can take excess reduction coverage that will lower your deductible to a few hundred.
As for your amex coverage read over your insurance certificate. Some companies specifically exclude Australia in their rental car coverage. Since damage coverage is pretty much standard in Australian rental contracts you might have to specifically decline the coverage. My credit card actually says to write on the contract " i hereby decline loss damage insurance" in this sort of circumstance.
I would recommend you also read the Australian road rules hand book before driving there. You can find a copy with google. Apart from the obvious driving on the left there are some other differences between North American and Australian driving ie. turns on a red light.

I think has been discussed but unless you get a good rate on insurance it's not worth it. Often it will be $30+ per day to remove a $2700 excess. So unless you're a clumsy driver it would be worth taking the risk.

Thanks, to the above 2 responders.

The question is about third party liability. When I go and rent a car in USA, I always get third party liability insurance, because of the medico-legal climate there.

Is third party liability automatically proviced in Australian rental cars? If not, is it worth taking this insurance?

Comprehensive insurance is included in any rental. Only the excess changes.

All vehicles must have compulsory third party personal insurance (at least in NSW) as part of their annual registration.

Thanks, to the above 2 responders.

The question is about third party liability. When I go and rent a car in USA, I always get third party liability insurance, because of the medico-legal climate there.

Is third party liability automatically proviced in Australian rental cars? If not, is it worth taking this insurance?

Australia has a totally different medico-legal climate than USA or Canada. Being from NZ, I'm not totally sure on the ability of people to sue for personal injury sustained in a car crash in Australia but Australian's themselves have medical care paid for by the Government (obviously you will need your own travel insurance). Maybe some from Australia who know's about this can clarify?

I know in NZ you cannot sue for personal injury so no liability insurance is required when renting a car there.

Australia has a totally different medico-legal climate than USA or Canada. Being from NZ, I'm not totally sure on the ability of people to sue for personal injury sustained in a car crash in Australia but Australian's themselves have medical care paid for by the Government (obviously you will need your own travel insurance). Maybe some from Australia who know's about this can clarify?

I know in NZ you cannot sue for personal injury so no liability insurance is required when renting a car there.

If you are injured by a motor vehicle then it's the responsibility of the vehicle's insurance company to pay the hospital bills and anything other ancillary services that arise because of it, like physios, chriopracters etc, as well as wheelchairs, crutches and so on. The insurance company is also responsible for paying for loss of income.

You can sue for personal injury, although I believe in recent years this has been somewhat reformed.

OP- We will be renting cars in several cities in Australia. The rental car websites and many travel and trip insurance websites answer your question in detail. You will get answers to this and your numerous other questions on this board by a quick Google search.

Apologies if I come off as a bit snarky but feel my time spent answering a series of your PM's several weeks ago was not appreciated. Please spend a little time investigating on your own as suggested by many others in several other threads.

We have rented once, during our trip to Australia.

To summarize the previous posts on this thread, the other threads, other web sites, and most importantly, our experiences. One can correct any mistakes I make.

In terms of "optional insurance" - one can get (if one does not have a credit/charge card that would cover this) collision coverage for the $3000 deductible - anything over the $3000 is automatically covered.

I believe that all other insurances are automatically covered (either by the insurance for the rental car, or by the insurance of the other car which may be involved in an accident with the rental car) - including 3rd party liablility insurance, and property damage.

I am not quite sure about coverage for personal injury insurance.

PS-I have not been, as stated by the previous poster, any web site (after googling), which concisely summarizes all car rental insurance features in Australian cars, and compares (in that same article) such features for American car rentals.

I am not quite sure about coverage for personal injury insurance.


This would be covered by your travel insurance, not the car rental company. Only third party personal is covered by the car's insurance.

To summarise:

- all car rental rates in Australia include CDW (but there is useually a high deductable). You Platinum AMEX will cover the deductible, so don't pay extra to have this reduced. It's required by law in Australia for car rental companies to include insurance.

- you do not need to take any third party liability cover. Again, this is compulsory in Australia and is attached to the car's registration. This covers only third parties injured by you driving the car (i.e. - it can cover passengers in the car, but not the driver). Your travel insurance will cover the driver.

Your travel insurance will cover the driver.

And passengers need their own insurance too.

And passengers need their own insurance too.


I am slightly confused about the last 2 posts.

If I am a driver of the rental car, and I am involved in an accident:

i) will the rental car (prepaid by rental company?) insurance cover 3rd party liability for the passengers in the other car involved in the accident; but not the driver of the other car? If that is correct, what do you mean by the driver of the rental car having travel insurance covering the driver of the other car - I am not aware that North American travel insurance would offer this feature.

ii) what do you mean that other passengers in the rental car need their own insurance? If they are in an accident, I guess their travel insurance would cover costs to treat injury? In this case, the 3rd party liability of the driver of the other car would not cover the injuries of the passengers of the rental car, but only the driver of ther rental car?

I am slightly confused about the last 2 posts.

If I am a driver of the rental car, and I am involved in an accident:

i) will the rental car (prepaid by rental company?) insurance cover 3rd party liability for the passengers in the other car involved in the accident; but not the driver of the other car? If that is correct, what do you mean by the driver of the rental car having travel insurance covering the driver of the other car - I am not aware that North American travel insurance would offer this feature.

ii) what do you mean that other passengers in the rental car need their own insurance? If they are in an accident, I guess their travel insurance would cover costs to treat injury? In this case, the 3rd party liability of the driver of the other car would not cover the injuries of the passengers of the rental car, but only the driver of ther rental car?

Everyone who is injured in the accident is covered by the compulsory third party liability insurance EXCEPT for the driver at fault (some policies do cover the driver at fault, but this is the exception rather than the rule). I'd still not recommend travelling anywhere internationally without travel insurance in any event.

Everyone who is injured in the accident is covered by the compulsory third party liability insurance EXCEPT for the driver at fault (some policies do cover the driver at fault, but this is the exception rather than the rule). I'd still not recommend travelling anywhere internationally without travel insurance in any event.

Which is what I meant to say but it looks like the brain and the hands had a disagreement.:o

Everyone who is injured in the accident is covered by the compulsory third party liability insurance EXCEPT for the driver at fault (some policies do cover the driver at fault, but this is the exception rather than the rule). I'd still not recommend travelling anywhere internationally without travel insurance in any event.

Thanks, for the information. However, just for further clarification:

So if I am the driver of the rental car, and if I am at fault, the costs to treat my injuries will not be covered by the third party liability. Then I should have travel medical insurance; its coverage should not be impacted (one way or the other) as to whether I am a driver at fault involved in a car accident. However, would my rental car third pary liability insurance cover the passengers (if injured) in the rental car, and also the driver and passengers (if injured) of the other car?

If I am a driver of a rental car involved with another car; and the other driver is at fault, then would the third party liability insurance of the rental car cover the other car's driver or the other car's passengers (assuming they were injured, as well)?

PS-Are there any situations in Australia involving accidents between 2 cars, where neither driver is considered to be at fault?

You are correct.

Liability is apportioned if there are two cars. If, for example, it was found that you were 20% at fault and the oither driver 80% at fault, the other driver's insurance would cover 80% of your liability. Your travel insurance will not be affected in any event. There is also government insurance that covers uninsured drivers - while this is illegal, it does happen occasionally.