Australian insurance policies on rentals are completely different from US and European ones.

From Hertz' website:

Most Hertz rates in Australia include Collision Damage Waiver* (CDW) which provides cover for accident damage to the Hertz vehicle and/or Third Party Property. In the event of accident damage, Accident Damages Excess (ADE) will apply. This is the amount the renter contributes towards the loss or damage.

Damage is defined but not limited to:

Damage caused by an accident. If a third party was at fault we will still charge the excess to the renter until we are paid out by the third party.
Damage caused by or sustained in the event of theft, attempted theft, vandalism or break in.

‘Single Vehicle Accident’ means any accident which does not involve the vehicle colliding with another moving vehicle.

You have the option to reduce the ADE and waive the SVA excess by purchasing Accident Excess Reduction (AER).

In short, in case of an accident one (if responsible) pays for a proportion of the damage (not all of it as in the US), unless AER has been purchased, in which case a smaller proportion must be paid (no percentages available).

The other two coverages available are the standard PAI (personal accident insurance) and PEC (personal effects coverage).

A good driver in a familiar environment could probably safely decline the additional coverages. If the amounts are negligible, AER may offer peace of mind against an encounter with the errant wallaby.


Amex USA specifically excludes Australia from its CDW coverage. Not sure about other credit cards.