travel insurance with car hire cover

• Travel recommendations
• The taste of travel
• Tips & tricks
• Travel experiences

The essential guide to car rental excess insurance

Knowing whether you need to purchase car rental excess insurance is a good start when you decide to rent a car. Making sure you’re protected if there’s an accident is important, but do you need the extra car rental insurance options that are offered when paying for your rental ? The short answer is not always. But let’s find out more.

In this post

What is car rental excess insurance?

How much is the excess you have to pay for your car rental, what is covered by car rental excess insurance, how does it work, do i need a car rental excess insurance, what is the best way to cover rental car excess, the collision damage waiver as an alternative, frequent question about car rental insurance excess.

Car rental excess insurance cover (or supplemental car rental insurance) is a protection plan for a fee that provides coverage for out-of-pocket expenses you may incur if there’s an accident or damage to a car rental . Rental agreements can include an excess amount or high deductible that you are responsible for if a rental car is in an accident, stolen, or damaged.

Car rental excess cover or deductible amounts can vary wildly. Factors include the rental company, the rental car type , the location and the rental agreement terms. Excess amounts are usually outlined in the rental agreement and can range from a few hundred to thousands of dollars.

Depending on the policy’s terms and conditions, the insurance can cover some or all the costs should you get in an accident.

In the U.S., car rental companies will typically offer four types of coverage:

• Liability coverage: This can vary from state to state but it is meant to protect you if you hurt someone or damage property during an accident.
• Collision or loss damage waiver: The waiver helps cover the cost if you damage a rental car.
• Personal effects coverage: This covers personal belongings if they are stolen from a vehicle (though it’s worth noting if you have renters' or homeowners’ insurance, this will typically be covered).
• Personal accident coverage: This covers medical bills if you or your passengers are injured in a car rental accident.

In Europe, rentals nearly always include liability coverage, but not the risk associated with damage to the vehicle itself or theft. Since your personal U.S. auto insurance will not apply in Europe, you will have three main options:

• Buying a collision damage waiver from the car rental company
• Using zero-deductible collision coverage that comes with some credit cards
• Purchasing collision coverage through a travel insurance provider.

This depends. If you have liability and comprehensive insurance for your vehicle, the coverage likely extends to when you are driving a rental car in the U.S. for personal reasons. If you’re traveling abroad, for business purposes, or simply want more coverage, you might need extra rental car insurance.

In Mexico, for example, you must buy extra coverage from a travel insurance provider or a rental car company to satisfy the mandatory insurance requirements .

Other instances where you will want to consider purchasing extra insurance include if you don’t own a car and you rent one occasionally (in this case, you probably don’t have personal auto insurance), or if your personal policy only includes liability insurance and not comprehensive or collision coverage.

One of the best car rental excess insurance options or ways to cover rental car excess is to buy insurance from a third-party company. The price for extra protection insurance can be lower than buying additional coverage from a rental company.

The only downside is that if the car gets damaged, you’ll have to pay the rental company first and then claim it back to your insurance.

Car rental companies typically offer a collision damage waiver when you make an online reservation and again when you pick up the vehicle. When you buy one, the company forfeits the right to charge you for damages to the rental car , but note that CDWs typically don’t cover tire and side mirror damage or damage from “gross negligence,” such as speeding or driving while intoxicated.

Hopefully, we've taken the headache out of the rental car process at home and abroad, and if you're ready to rent a car for your next vacation, we're here to help.

How does KAYAK know what to put in this guide?

I have been traveling the world for over 20 years. I’ve rented cars in Mexico, Italy, France, Ireland, the U.K. and throughout the U.S. Some experiences went smoothly, while others did not, like when I rented a compact manual car and got stuck trying to drive up a steep Tuscan hillside. Through trial and error, I’ve learned when to purchase extra insurance and when not to. Renting a car can be intimidating, but with the help of KAYAK and through my experience and mistakes, I want to help you learn.

About the author

Explore more articles

California consumers have the right to opt out of the sale * of their personal information. For more information on how we securely process personal information, please see our Privacy Policy .

Do not sell my info ON

* The definition of "sale" under the California Consumer Privacy Act is applicable only to California consumers.

• Join CHOICE

Is car hire insurance worth it?

Do you need to buy car hire excess insurance over the counter or are there better alternatives to reduce your excess.

Fact-checked

Checked for accuracy by our qualified fact-checkers and verifiers. Find out more about fact-checking at CHOICE .

There's nothing worse than booking a hire car thinking you're getting a pretty good deal, only to find the price has nearly doubled when you go to pick it up.

If this has happened to you, it's probably because the car hire company failed to tell you about the extra charges you have to pay if you want to lower your insurance excess (the amount you're liable for if the car gets damaged).

If you don't fork out the extra cash, they'll charge the full excess in case of an accident. In our examples, this could be as much as $5500. And if the repairs cost less than the excess, you'll just have to trust them to refund the difference to your credit card.

To hire a basic economy car from Sydney Airport for a week from Avis you'll pay a minimum of $120 a day, but to reduce your excess from $5445 to $838 for the same hire, you'll be slugged with an additional $71 a day.

The good news is, there are alternative car hire excess insurance products available that could save you up to $61 a day on your car hire.

On this page:

What are the alternatives to paying the car hire excess waiver?

What's the cheapest way to reduce car hire excess, which hire car excess cover should you choose, what to ask about your car hire excess cover, what to do if you've damaged a hire car vehicle.

Instead of succumbing to the pressure-sale tactics at the car hire counter, you can:

• use the car hire excess cover in a travel insurance policy
• buy a standalone car hire excess insurance policy from a different insurer.

If you're hiring a car for a week, these are both cheaper alternatives to the excess waiver offered by the car hire company. Standalone policies also often have fewer exclusions.

So what's the catch? The alternatives may not be as convenient. If you're in an accident in your rental car, you may have to pay the car hire company for the damages and then claim them back from your chosen insurer.

Below, we compare the daily cost of the car hire excess waiver offered by seven car hire companies (SIXT, Thrifty, Hertz, Avis, Budget and Europcar) against standalone insurance products from: 

• Car Hire Excess
• RentalCover

And the domestic travel insurance products from:

• Travel Insurance Direct .
• Car hire quotes are based on the cheapest car hire options from Sydney Airport.
• The cover level selected for the car hirers is the level that includes excess reduction, windscreen and tyres, since this is covered by all the standalone products we included.
• Travel insurance quotes are for one traveller aged 35 and the default policy excess level offered by the online quote.
• *Excess for Avis and Budget can only be reduced to $838 online. Zero excess is available at the counter.
• **Variable excess level increased to $6000 since the basic excess for most car hires (excluding SIXT) is over $5000.

Standalone car rental excess cover 

This is often the cheapest option for covering your car hire excess, especially for hire periods longer than one day. It also has the advantage of providing extra cover for items over and above what's covered by your car hire contract.

Many of these items aren't typically covered by the default excess waiver that comes with your rental car. Some of the extra items covered include:

• headlights  (covered by RentalCover)
• key loss  (covered by Prosura and RentalCover)
• single vehicle accident  (covered by Car Hire Excess and Prosura)
• tyres  (covered by Car Hire Excess, Prosura and RentalCover)
• underbody  (covered by Car Hire Excess, Prosura and RentalCover)
• windscreen  (covered by Car Hire Excess, Prosura and RentalCover).

*Quotes stated in the comparison table above are for $6000 excess.

Travel insurance

Both domestic and international travel insurance policies often contain cover for hire car excess. If you're travelling overseas, travel insurance is essential , so if you already have good rental car excess cover in your travel insurance policy, you won't need to shell out for additional cover.

If you're travelling in Australia, domestic travel insurance can be useful for cancellation cover for high value trips, or protection of valuables like laptops and ski gear, as well as car hire excess cover. 

There are a few traps to keep in mind when relying on the car hire excess cover included in your travel insurance.

• If you only want cover for car hire excess, domestic travel insurance may be a good option for longer trips, but it can be an expensive option for short trips.
• It's charged on a per person basis, so if you have more than one driver, you'll need insurance for each person. 
• The rental car excess cover in your travel insurance will generally only cover things that are already covered by the car rental company. So for example, if the agreement you have with the car rental company excludes cover for things like tyres and windscreens, then the travel insurance rental excess may not cover those items either.
• We found some domestic travel insurance policies only cover car hire excess up to $5000 but the default excess for most car hire companies we looked at is above $5000.

Credit card travel insurance  doesn't usually cover domestic car hire, but if you're travelling internationally, many offer cover for rental car excess. Depending on the policy, it may only cover the cardholder, and there may be conditions for accessing the cover, such as paying for the car rental on the card.

The car hire company's excess waiver product

The main advantage of forking over the extra cash to the car hire company to lower or completely waive the excess is you only have to deal with one company. All the paperwork is done with the car hire company, and if you've paid to waive the excess altogether, then you don't have to dig into your own pocket at all if you do have an accident.

The car hire company may be friendlier after you've handed over the extra cash, but if you look at the standard excess cover, you could be forgiven for thinking their business model is partly based on getting you to pay extra to bring these alarming excess amounts down.

For more details on the car hire excess cover available from car hire companies, check our  car hire comparison .

It helps to ask the rental agency a few questions before you commit to anything.

What is my excess liability under the rental agreement?

Ask your rental agency how much the excess is for the vehicle you're hiring. This will help you determine how much excess cover you need. Keep in mind that the excess for luxury vehicles and 4WDs is often higher than for standard vehicles. 

Also ask if there are any situations where the excess may be higher, for example for younger drivers or single-vehicle accidents.

If you're considering using a standalone car hire excess insurance product, ask them if they'll cover any of the items that aren't covered by your car rental agency.

What are the exclusions to the cover?

Even if you pay to reduce your excess to zero, either through the car hire company or an alternative provider, you're unlikely to have waived all of your potential expenses. There are usually exclusions to the cover, which means there will be scenarios where you'll have no cover at all (and it's not always possible to buy cover for such scenarios).

Typical exclusions are damage to windscreens and tyres, overhead and underbody damage, and damage to headlights.

When aren't I covered by my car hire excess insurance?

It's fairly standard among rental agencies and alternative third-party providers to hold you fully liable for damages (i.e. beyond the standard excess amount), if it occurs as a result of breaching the contract or as a result of an excluded activity.

Common rental agreement breaches include:

• disobeying road rules or being in contravention of any law
• driving in specified remote areas or outside any town or city limits in Western Australia or the Northern Territory between dusk and dawn
• driving on unsealed roads
• an unauthorised person driving the vehicle
• using the incorrect fuel type
• driving above the snow line during ski season
• driving under the influence of alcohol.

Your expenses in this case may not just be limited to damage done to the vehicle. You could also be held liable for expenses such as  admin and towing fees. I f the car is off the road as a result of damage, you may also be held liable for the loss of income to the rental agency while it's being repaired.

If you're unfortunate enough to have an accident in your rental vehicle, here are a few tips to keep in mind. 

• If there's any damage that needs to be repaired, get an itemised receipt for the cost of repairs. If there is anything suspicious, challenge it. We've heard of cases where rental agencies have added on hundreds of dollars' worth of extra 'miscellaneous fees' in addition to the repair costs. These charges were dropped when challenged.
• While it goes against Australian Consumer Law guidelines, rental agencies sometimes charge the maximum damage excess fee without a repair quote, or place extra charges on your card without first giving you a chance to dispute them. If this happens, you can try seeking a chargeback through your credit card company.

Join the conversation

To share your thoughts or ask a question, visit the CHOICE Community forum.

• Credit cards
• View all credit cards
• Banking guide
• Loans guide
• Insurance guide
• Personal finance
• View all personal finance
• Small business
• Small business guide
• View all taxes

What Does Travel Insurance Cover?

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

Table of Contents

What is covered by travel insurance

Extras you can add to a travel insurance policy, what does travel insurance not cover, how to pick the right policy for your trip, if you want to understand travel insurance coverage.

If something goes wrong during a trip, your savings account could take a serious hit if you don’t have travel insurance. Flight cancellations, lost baggage or an accident can throw a wrench into your carefully made plans and cost a lot to rectify.

On the other hand, knowing that your trip is protected can help put your mind at ease before, during and after a vacation. But exactly what does travel insurance cover? Let’s find out.

Most plans typically cover a range of trip protections, including accidental death and dismemberment, baggage delay or loss, emergency medical coverage and evacuation, trip cancellation, delay or interruption and more. Here's a closer look at each one.

Accidental death and dismemberment

Accidental death and dismemberment insurance provides coverage for death or losing a limb or eyesight as a result of an accident. Note that death from natural causes, illness or by suicide isn’t covered, so it’s not the same thing as a life insurance policy.

Baggage delay

Baggage delay insurance reimburses the cost of essentials, such as clothes, toiletries or a phone charger, that you may need to purchase if your bag is delayed. Your baggage must be delayed over a certain number of hours to receive coverage — typically the range is from six to 24 hours, depending on the policy.

Baggage loss

Insurance for baggage loss reimburses the cost of your suitcase and belongings should a checked bag become lost, stolen or damaged during a covered trip.

Emergency medical evacuation and repatriation

This benefit covers the cost associated with medical evacuation if you have a medical emergency and you can’t be treated at the facility closest to you. It will cover transport costs to another hospital or your home country, if necessary, and also includes transportation of remains.

» Learn more: Travel medical insurance: Emergency coverage while you travel internationally

Missed connection

A missed connection benefit covers extra expenses if a common carrier delay causes you to miss an organized tour or a cruise, for example, and you need to pay extra to catch up to it at the next port of call.

Reinstate frequent traveler awards

If you paid for a trip with airline miles or hotel points and it is subsequently canceled, this benefit will cover any fees required to redeposit your rewards back to your frequent traveler account.

Trip cancellation

Trip cancellation insurance reimburses you for prepaid nonrefundable costs if you must cancel a trip for a covered reason. Reasons that are typically covered include:

Sickness or death of a family member.

Financial insolvency.

Natural disaster.

Airline strike.

Inclement weather.

Military duty.

Stolen passport or visa.

Loss of employment.

Trip delay covers costs associated with transportation, meals or lodging should your common carrier be delayed, as well as reimbursement of any prepaid, nonrefundable expenses. Trip delay coverage takes effect after a specified period of time depending on the policy, but typically ranges from five to 12 hours.

» Learn more: What you need to know about Chase’s trip delay insurance

Trip interruption

Trip interruption insurance reimburses you for unused, nonrefundable costs in the event you must cut the trip short and return home for a covered reason, including a family member’s sickness or death, terrorism, inclement weather or a natural disaster, among others.

Travel insurance plans usually don’t include coverage for every possible thing that can go wrong, but you can add optional extras to your policy for an upcharge. Check to see if your plan has the following types of coverage, and if you think you need it, you can add it in or buy a more inclusive policy.

Cancel For Any Reason

If you change your mind and decide not to go on a trip you’ve booked, you typically can’t get reimbursed for prepaid, nonrefundable expenses — unless you purchase a cancel for any reason policy separately. Depending on the policy, you usually get a portion of your prepaid expenses back (typically 50% to 75%), but you must purchase the policy within 10 to 21 days of initial payment. Note that cancel for any reason isn’t the same as trip cancellation listed above.

Rental car collision damage waiver

If your rental car is damaged or stolen, rental car insurance will protect you from having to pay for the damage or theft. Many credit cards, such as the Chase Sapphire Preferred® Card or the Capital One Venture X Rewards Credit Card , offer rental car collision damage insurance, so check whether the cards you hold have this benefit before adding it to a policy.

Pre-existing conditions

If you need coverage for a pre-existing medical condition, you must purchase a policy within the time specified by the insurance provider to be eligible for a pre-existing conditions waiver (usually ten to 21 days). Make sure that the coverage amount you enter is equal to all prepaid, nonrefundable costs for your trip.

» Learn more: The best travel insurance companies right now

Quarantine accommodations

This coverage is often part of trip delay insurance, but some providers include it and some don’t. For example, the Safe Travels Voyager plan offered by Trawick International covers lodging expenses in case you get sick with COVID-19 and have to quarantine abroad before flying home safely.

» Learn more: Travel insurance may not cover COVID-19 — unless you upgrade

Travel insurance offers coverage for many situations, but not all. Some scenarios aren’t covered by a travel policy, including:

A named storm: Most travel plans protect you from hassles stemming from inclement weather. However, a policy needs to be purchased before a tropical storm or weather event is named. If you purchase coverage after a natural disaster has begun, it won’t be covered.

Activities performed under the influence: Drug and alcohol use are a notable exception to most travel policies. If you fall off an ATV because you drank a few alcoholic beverages or took drugs before operating a vehicle, you’re no longer covered.

Extreme sports: Some high-risk sports, such as bungee jumping, scuba diving or rock climbing, aren’t covered by a comprehensive travel insurance plan. However, you can buy a separate policy for the specific adrenaline activities you’re planning to do on your vacation from World Nomads , for example.

Fear of travel because of a pandemic or another reason: This is something that would be covered under a “cancel for any reason” add-on, but a general travel policy won’t cover fear of travel.

Medical tourism: Seeking dental work in Mexico or a hair transplant in Turkey? Keep in mind that your medical expenses for elective procedures aren’t covered by a plan with emergency medical coverage.

Pregnancy: If you want to cancel a trip because you’re pregnant, you can do so only if you purchased the plan before you became pregnant. Otherwise, it’s not a covered reason. Additionally, medical costs incurred while on a trip during pregnancy might or might not be covered (check with your insurance provider).

» Learn more: What to know before you buy travel insurance

The length of trip, your age and the destination all factor into how much a policy will cost. The coverage types and their limits also influence the price tag.

Types of coverage and limits

Take a look at the terms of each policy and determine the type of coverage you need the most. Compare the coverage details and limits with the cost. If you hold a travel credit card , familiarize yourself with its benefits as some of the trip protections might be redundant.

Single trip vs. annual plan

For frequent travelers, an annual plan offers the most bang for your buck — it costs less money versus purchasing insurance for multiple single trips. An annual policy covers long international trips as well as short domestic trips in between, so you can have peace of mind all year long. But everything isn’t always included in a multi-trip plan, the coverage limits are lower and you may not be covered for pre-existing conditions.

Individual vs. family

When shopping for a quote, include everyone traveling in your party and their ages before you submit the trip details. Note that some insurance providers include free coverage for children 21 and younger if a parent is the primary policyholder.

» Learn more: 10 best travel insurance companies

Because coverage varies among the different insurance providers and policies, make sure to read over the policy terms carefully, especially if you’re looking for a specific type or amount of coverage.

If you’re still not sure whether a specific event or activity would be covered, call the insurance company and chat with a customer service representative. It’s better to be aware of what’s covered and what isn’t before you need to (but hopefully don’t have to) file a claim.

For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024 , including those best for:

Flexibility, point transfers and a large bonus: Chase Sapphire Preferred® Card

No annual fee: Bank of America® Travel Rewards credit card

Flat-rate travel rewards: Capital One Venture Rewards Credit Card

Bonus travel rewards and high-end perks: Chase Sapphire Reserve®

Luxury perks: The Platinum Card® from American Express

Business travelers: Ink Business Preferred® Credit Card

on Chase's website

1x-10x Earn 5x total points on flights and 10x total points on hotels and car rentals when you purchase travel through Chase Travel℠ immediately after the first $300 is spent on travel purchases annually. Earn 3x points on other travel and dining & 1 point per $1 spent on all other purchases.

75,000 Earn 75,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,125 toward travel when you redeem through Chase Travel℠.

1x-5x 5x on travel purchased through Chase Travel℠, 3x on dining, select streaming services and online groceries, 2x on all other travel purchases, 1x on all other purchases.

75,000 Earn 75,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's over $900 when you redeem through Chase Travel℠.

1x-2x Earn 2X points on Southwest® purchases. Earn 2X points on local transit and commuting, including rideshare. Earn 2X points on internet, cable, and phone services, and select streaming. Earn 1X points on all other purchases.

50,000 Earn 50,000 bonus points after spending $1,000 on purchases in the first 3 months from account opening.

• Make A Claim
• Your policy
• Car hire excess versus travel insurance

     Car Hire Excess vs Travel Insurance

It's true, many travel insurance policies do include car hire excess cover, but there are quite a few restrictions to pay attention to. If you're not sure whether you need a standalone excess reduction policy or if travel insurance is enough, we're here to help. Don't feel wooly headed, get geared up and ready to go with our 8 pros of hire car excess.

1. You get more cover

Travel insurance policies typically only cover up to around $6,000, if you’re needing more cover for a camper or fancy set of wheels standalone policies like ours cover up to $8,000.

2. You pay NO excess

3. windscreen, tyres & underbody covered, 4. all are welcome, 5. all drivers included, 6. there are no timing restrictions, 7. there are no distance restrictions, 8. our policies are cheaper for longer, don’t forget, there's no medical cover with domestic travel insurance.

The main reason people purchase travel insurance is because of the medical benefits. However domestic policies generally do not include these.

So what are you waiting for?

You’d be baaarmey not to buy car hire excess with Baaaney instead. A policy with CHE could cost as little as $10* a day and if you do have an accident, no matter if it's to the underbody or tyres, you pay nothing, zero, zilch, nada! Get a quote now! For heaps more handy helpers, check out our rental excess guides.

Further reading

What is car hire excess anyway ?

Going from A to B? Car Hire Excess saves your wallet from a wipeout!  

Avis car hire

Still deciding on your rental company? Learn all about Avis right here.

B udget car hire

Looking for car hire on a budget? Find cheap car hire wth Budget.

Europcar hire car

Heading overseas or around Oz. Europcar's selection of vehicles has you covered.

Thrifty car hire  

Still deciding on your rental company? Learn all about Thrifty right here.

Car Hire Excess

Customer service, other links.

"Car Hire Excess" is a trading name of the Insurance Geeks Pty Ltd ABN 35 612 507 785. The Insurance Geeks is an authorised representative of Coffre-Fort Pty Limited ABN 66 125 358 518, AFS Licence No. 472457. This site contains general guidance only on insurance products available to you. Before you buy a policy, you should consider the Target Market Determination (TMD) and Product Disclosure Document (PDS) in light of your personal circumstances to determine if this product suits your needs. This insurance is underwritten by HDI Global Specialty SE - Australia.

Does travel insurance cover car hire excess?

You can get travel insurance with rental car excess cover, but normally you’ll need to take out a comprehensive policy or upgrade your cover with an add-on..

Destinations

In this guide

Travel insurance with rental car excess cover

What does travel insurance with rental car excess cover, travel insurance car rental excess vs waiving my excess, here's a list of travel insurers that cover car hire excess, how nicola avoided paying a $1,400 car rental excess, faqs about travel insurance and rental cars.

Many comprehensive travel insurance policies come with rental car excess cover . If you're involved in an incident and your rental company charges you an excess, you can claim this back with your travel insurance.

If something happens, the rental company will typically charge you the excess amount then you can get reimbursed by your travel insurer. Just make sure you get a copy of the receipt showing the excess amount charged by the rental company.

Rental vehicle excesses range from around $2,000-$8,000. Travel insurance policies differ in how much they cover you for though the minimum for most is $2,000. Some go further than others. For example, Southern Cross Travel Insurance can cover you for up to $10,000.

The car rental excess

If something happens and you need to pay the car rental excess, travel insurance can cover the costs. You can get overseas and domestic travel insurance rental car excess with most comprehensive policies. Some policies cover you for up to $10,000.

Transportation of the vehicle back to the car rental depot

If you suffer an injury or illness during your journey, you may not be in a fit condition to drive your rental car to the nearest depot. When this happens, some insurers will cover the cost of returning the car to the nearest depot, as long as you can obtain written confirmation from your medical adviser that you are unable to drive.

Medical expenses if you get into an accident

If you crash your car and need ambulance transportation, medical treatment, hospital accommodation and even repatriation to Australia, comprehensive travel insurance can cover the costs.

You won't receive any cover if you break an exclusion on your policy – for example, failing to follow the road rules in the country you're in.

Before you sign the rental agreement, car hire companies will offer the option to reduce your excess charge for a daily fee. This is often referred to as an excess waiver or excess reduction option.

Often you'll be able to reduce the excess to zero if you're willing to pay the additional amount. While this may sound like an attractive option, paying a daily fee to reduce your excess can actually work out to be quite costly. A travel insurance policy that includes car rental excess cover is usually a much more cost-effective way to take out financial protection as shown below.

We took a look at a list of our travel insurance partners and found these brands automatically include car rental excess insurance in their policies. If you're hiring a luxury car or just need a higher excess limit in general, consider choosing an option that allows you to increase your excess for an extra premium.

Note: Information last obtained on August 2022 and is subject to change. Make sure you understand the general conditions surrounding car rental excess cover for each policy. The cover amount is for an International trip (comprehensive policy) and domestic trip per single person. For a comprehensive list of the conditions of each policy, please read the product disclosure statement of the policy.

"My policy cost $48... and it came with heaps of extra benefits"

"So, I decided to buy a domestic travel insurance policy, mostly for the rental car excess cover."

Nicola, who was Finder's commercial content editor, paid just $48.96 for her travel insurance policy, a domestic plan with InsureandGo to cover her 10-day break.

"At less than $50 for 10 days, the entire policy was cheaper than the insurance offered by the rental company and it came with heaps of extra benefits," added Nicola.

"Lo and behold, I ended up hitting a wallaby on our drive back from Cradle Mountain. I was devastated that I'd killed it and honestly didn't even give much thought to the cost – the damage seemed pretty minimal and I figured it would be a couple of hundred dollars at most."

"It was not. When we returned the car, I told them that I'd hit an animal and there were some small scratches on the bumper. I was immediately charged the excess of around $2,750. $1,475 of that was considered damage (the rental company charged additional fees including a claims fee and a charge for time off-road), and I was eventually refunded $909.

"As soon as I got home, I filed a claim with the travel insurer and they were great – far better to deal with than the rental company. There were no further shocks or surprises. I had an excess on the travel insurance of $100 but InsureandGo paid out $1,375 within a matter of days ."

What is rental car excess in travel insurance?

Rental car excess cover is included with many comprehensive travel insurance policies. It pays for the excess if your rental car is damaged, stolen or involved in an accident.

Does travel insurance cover motor vehicle accidents?

Travel insurance will indirectly cover you for the costs involved if there's damage or loss to your rental car.

When you hire a car, it usually comes with its own form of insurance called a loss damage waiver or the collision damage waiver. If you get into an accident and damage the car, you'll be charged an excess by the rental company and that's the amount your travel insurance should cover you for.

Am I covered if I injure someone else or cause damage to their car?

Travel insurance policies typically include personal liability cover , but they do not offer protection if you injure someone else or damage someone else's property while driving a rental car .

You can get this cover through the compulsory liability motor vehicle insurance available from the rental company. Most travel insurers include a requirement for your car rental agreement to have third-party liability motor insurance.

Am I covered for medical expenses if I get into an accident?

Travel insurance provides cover for medical costs if you're injured in an accident overseas. If you crash your car and need ambulance transportation, medical treatment, hospital accommodation and even repatriation to Australia, your travel insurer will be able to cover the costs. You won't receive any cover if you break an exclusion on your policy, such as failing to follow the road rules in the country you're in, so make sure you're aware of the exclusions in your policy before you get behind the wheel.

Meet our travel expert Angus Kidman

Angus Kidman is the international editor-at-large at Finder. He's an award-winning journalist, avid travel enthusiast and passionate frequent flyer. Angus appears regularly on Sunrise, Today, The Project, Seven News and other TV and radio shows to share his expert tips.

Angus's top car hire excess tips

• Care hire excess isn't worth it in most cases. Look at what's included in your main travel insurance first.
• If you do want additional cover, a standalone policy bought separately from your car hire is generally always cheaper.
• Make sure you're comfortable with the excess - you'll have to pay that if there is any accident or damage caused.

Gary Ross Hunter

Gary Ross Hunter is an editor at Finder, specialising in insurance. He’s been writing about life, travel, home, car, pet and health insurance for over 6 years and regularly appears as an insurance expert in publications including The Sydney Morning Herald, The Guardian and news.com.au. Gary holds a Kaplan Tier 2 General Advice General Insurance certification which meets the requirements of ASIC Regulatory Guide 146 (RG146). See full profile

More guides on Finder

The best travel insurance policies are different for each individual traveller.

Compare Travel Insurance Direct policies online to save time and money. Travel Insurance Direct offers various policies including Annual multi-trip, The Works, The Basics and Domestic travel.

If time is valuable to you, Travel Insuranz may be suitable for you. With its fast online processing process, Travel Insurance provides easy access to protecting yourself for travel. Read its policy online.

Compare Travel Insurance Saver with other policies to see if they are right for you.

Find out how travel insurance for trip disruption actually works and policies from Australian brands.

Find out how travel insurance covers accidental death and what will be paid from in the event of a claim.

Beware when swimming at Byron, Ballina, Bondi and Bells.

Learn more about travel insurance brokers, how they are paid and the way they can help you find comprehensive travel cover.

Is travel insurance a worthy investment? Find out why travel insurance is an invaluable travel item.

Guide to high-risk travel insurance: What is and isn't covered.

Ask a Question

Click here to cancel reply.

You are about to post a question on finder.com.au:

• Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
• finder.com.au is a financial comparison and information service, not a bank or product provider
• We cannot provide you with personal advice or recommendations
• Your answer might already be waiting – check previous questions below to see if yours has already been asked

How likely would you be to recommend finder to a friend or colleague?

Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.

Important information about this website

Advertiser disclosure.

finder.com.au is one of Australia's leading comparison websites. We are committed to our readers and stands by our editorial principles

We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market.

Some product issuers may provide products or offer services through multiple brands, associated companies or different labeling arrangements. This can make it difficult for consumers to compare alternatives or identify the companies behind the products. However, we aim to provide information to enable consumers to understand these issues.

How we make money

We make money by featuring products on our site. Compensation received from the providers featured on our site can influence which products we write about as well as where and how products appear on our page, but the order or placement of these products does not influence our assessment or opinions of them, nor is it an endorsement or recommendation for them.

Products marked as 'Top Pick', 'Promoted' or 'Advertisement' are prominently displayed either as a result of a commercial advertising arrangement or to highlight a particular product, provider or feature. Finder may receive remuneration from the Provider if you click on the related link, purchase or enquire about the product. Finder's decision to show a 'promoted' product is neither a recommendation that the product is appropriate for you nor an indication that the product is the best in its category. We encourage you to use the tools and information we provide to compare your options.

Where our site links to particular products or displays 'Go to site' buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product. You can learn more about how we make money .

Sorting and Ranking Products

When products are grouped in a table or list, the order in which they are initially sorted may be influenced by a range of factors including price, fees and discounts; commercial partnerships; product features; and brand popularity. We provide tools so you can sort and filter these lists to highlight features that matter to you.

Terms of Service and Privacy Policy

Please read our website terms of use and privacy policy for more information about our services and our approach to privacy.

We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.

Learn how we maintain accuracy on our site.

• Commercial Motor Vehicle
• Roadside Assistance
• Public Liability
• General Property
• Management Liability
• Small business
• Tradies and contractors
• Retailers insurance
• Professional service providers
• Health and beauty professionals
• Real estate
• Cafés and restaurants
• NSW stamp duty exemption
• ACT | NT | TAS | WA claims
• NSW forms and resources
• VIC forms and resources
• ACT | NT | TAS | WA forms and resources
• Workplace mental health
• Training & webinars
• Compare Travel Insurance
• Caravan and Trailer
• Cyclone support
• Flood support
• Storm support
• Bushfire support
• Customer counselling program
• Financial hardship
• Scam warning
• Family violence support
• Deceased estates
• Financial institutions
• Insurance brokers
• Partner News Hub
• The Allianz Hub
• Login to My Allianz
• Make a payment
• Retrieve a quote
• Retrieve life application

Rental Vehicle Excess cover

• What's covered
• Why choose us

What is Allianz Rental Vehicle Excess cover?

Our Rental Vehicle Excess cover is designed to provide cover towards the excess you’re liable to pay if your hire vehicle is damaged or stolen 1 . It’s included as a standard benefit in all Allianz  Comprehensive ,  Multi-Trip   and  Domestic   Travel Insurance plans.

Allianz Rental Vehicle Excess cover is an alternative to excess reduction products sold by car rental companies. See the Product Disclosure Statement (PDS) for all terms, conditions, exclusions, limits and applicable sub-limits that may apply.

What does it cover?

Rental Vehicle Excess cover 1 is included as a standard benefit in all Allianz Comprehensive , Multi-Trip and Domestic Travel Insurance plans policies at no added cost.

This is a limited summary of some of our Rental Vehicle Excess covers only. Terms, conditions, exclusions, limits and applicable sub-limits apply. For full details and before making a decision, consider the relevant Product Disclosure Statement (PDS) .

• Benefits we offer
• Excess payment If your rental vehicle is involved in an accident while it’s being driven by you and you're the nominated driver, or it’s damaged or stolen while in your custody, we’ll pay you the lesser of (up to your benefit limit) 1 :
• the amount specified that you’re liable to pay under the rental vehicle agreement, or
• the property damage for which you’re liable.

If you’re diagnosed by the treating medical adviser as unfit to return your rental vehicle to the nearest depot, we’ll pay the cost of returning the vehicle (up to the applicable benefit limit). Note: This cover only applies if:

• you hire a rental vehicle from a rental company or agency;
• you’re a nominated driver on the rental vehicle agreement; and
• the rental vehicle agreement specifies a maximum amount that you must pay if the rental vehicle is damaged or stolen. 
• More than just cars Rental vehicle means a campervan/motorhome that does not exceed 4.5 tonnes, a sedan, coupe, hatchback, station-wagon, SUV, four-wheel drive or minibus/people mover, rented from a licensed rental company or agency. Rental vehicle doesn’t include any vehicle other than those listed, irrespective of use or weight.
• All licensed rental companies Your policy covers the excess (up to your benefit limit) 1 charged by any licensed motor vehicle rental company. This includes all the major car hire brands such as Avis , Budget , Enterprise , Europcar , Hertz and Thrifty .

Why choose us?

Thousands of satisfied customers, network of medical experts, emergency assistance available, we’re an established insurer, ready to get started, frequently asked questions.

If you buy an Allianz Travel Insurance policy and select a plan that includes the Rental Vehicle Excess benefit, you can claim in the event you’re required to pay an excess, deductible or damage liability fee to a car rental company if your rental car is accidentally damaged or stolen.

Your policy is designed to cover the excess, deductible or damage liability fee charged by any licensed motor vehicle rental company, up to the benefit limit stated in the Benefits Table in the PDS, including all the major car hire brands. Refer to the Product Disclosure Statement (PDS) for details.

Allianz Comprehensive, Multi-Trip, Domestic and Non-Medical Travel Insurance policies provide a benefit for Rental Vehicle Excess cover as an alternative to paying the car rental company’s increased fees to lower the excess.

You’ll need to assess your requirements and financial situation before buying a policy.

We're here to help

Give us a call, or send us a message, follow us on, *conditions apply.

• Terms, conditions, exclusions, limits and applicable sub-limits apply. Refer to Rental Vehicle Excess in the  Product Disclosure Statement (PDS) for full details.
• Car Insurance
• CTP Insurance
• Home & Contents Insurance
• Building Insurance
• Landlord Insurance
• Travel Insurance
• Life Insurance
• Caravan Insurance
• Boat Insurance
• Small Business Insurance
• Business Insurance Pack
• Workers' Compensation
• Renewals / Payments
• Manage Your Policy
• Policy Documents
• Customer Support
• How we help
• Sustainability
• Partnerships
• Work with us

Any advice here does not take into account your individual objectives, financial situation or needs. Terms, conditions, exclusions, limits and applicable sub-limits apply. Before making a decision about this insurance, please consider the relevant Product Disclosure Statement (PDS)/Policy Wording and Supplementary PDS (if applicable). Where applicable, the PDS/Policy Wording, Supplementary PDS and Target Market Determination (TMD) for this insurance are available on this website.

Travel Insurance is issued and managed by AWP Australia Pty Ltd ABN 52 097 227 177 AFS Licence No. 245631, trading as Allianz Global Assistance (AGA) as agent of the insurer Allianz Australia Insurance Limited ABN 15 000 122 850 AFS Licence No. 234708 (Allianz). Travel Insurance is underwritten by the insurer Allianz. Terms, conditions, exclusions, limits and applicable sub-limits apply.

+ The 10% off Travel Insurance ‘GETAWAY’ discount is available from 09:00am AEST 23/05/2024 until 11:59pm AEST 07/06/2024 by entering the valid promo code. The discount applies to new policy purchases and is based on standard premium rates (including optional extras). It applies automatically upon successful input of the promo code and applies to any changes, upgrades or amendments made to the policy prior to commencement of the journey. The discount may apply to changes made after commencement of the journey, contact Allianz Global Assistance to find out more. Not to be used in conjunction with any other offer.

We don’t provide advice based on any consideration of your objectives, financial situation or needs. Before making a decision, please consider the Product Disclosure Statement available on this website. If you purchase this insurance, AGA will receive a commission that is a percentage of the premium. Ask us for more details before we provide you with any services on this product.

June 1, 2020

Due to travel restrictions, plans are only available with travel dates on or after

Due to travel restrictions, plans are only available with effective start dates on or after

Ukraine; Belarus; Moldova; North Korea; Russia; Israel

This is a test environment. Please proceed to AllianzTravelInsurance.com and remove all bookmarks or references to this site.

Use this tool to calculate all purchases like ski-lift passes, show tickets, or even rental equipment.

What Does Rental Car Insurance Cover?

Insurance benefits underwritten by BCS Insurance Company (OH, Administrative Office: 2 Mid America Plaza, Suite 200, Oakbrook Terrace, IL 60181), rated “A” (Excellent) by A.M. Best Co., under BCS Form No. 52.201 series or 52.401 series, or Jefferson Insurance Company (NY, Administrative Office: 9950 Mayland Drive, Richmond, VA 23233), rated “A+” (Superior) by A.M. Best Co., under Jefferson Form No. 101-C series or 101-P series, depending on your state of residence and plan chosen. A+ (Superior) and A (Excellent) are the 2nd and 3rd highest, respectively, of A.M. Best's 13 Financial Strength Ratings. Plans only available to U.S. residents and may not be available in all jurisdictions. Allianz Global Assistance and Allianz Travel Insurance are marks of AGA Service Company dba Allianz Global Assistance or its affiliates. Allianz Travel Insurance products are distributed by Allianz Global Assistance, the licensed producer and administrator of these plans and an affiliate of Jefferson Insurance Company. The insured shall not receive any special benefit or advantage due to the affiliation between AGA Service Company and Jefferson Insurance Company. Plans include insurance benefits and assistance services. Any Non-Insurance Assistance services purchased are provided through AGA Service Company. Except as expressly provided under your plan, you are responsible for charges you incur from third parties. Contact AGA Service Company at  800-284-8300 or 9950 Mayland Drive, Richmond, VA 23233 or [email protected] .

Return To Log In

Your session has expired. We are redirecting you to our sign-in page.

FinanceBuzz

8 Reasons It’s Worth It To Buy Travel Insurance (And 6 Times To Skip It)

Posted: July 12, 2023 | Last updated: April 7, 2024

Life is full of unexpected events and complications, and that doesn’t stop just because you’re traveling. If anything, travel may have even more surprises than your day-to-day life at home.

Travel insurance can help you avoid wasting money if you have to cancel a trip due to illness, need medical coverage while you’re traveling, or send you home for medical reasons.

However, it may not always be necessary and can sometimes be a waste of money. Keep reading to learn when you should and shouldn’t opt for travel insurance.

Compare the best travel credit cards for nearly free travel

Safety net for international travel

The number one reason people buy travel insurance is to cover an expensive trip. And if you’re traveling overseas, chances are your travels will cost a lot of money.

In addition, there are potential complications when it comes to international travel, from losing luggage during connecting flights, missed or canceled flights, sickness, and more.

And if something catastrophic happens in a foreign country, travel insurance provides evacuation so you can get home safely.

Want to learn how to build wealth like the 1%? Sign up for Worthy to get ideas and advice delivered to your inbox.

Medical coverage

Getting sick or injured is unpleasant enough when you’re in the comfort of your home, but it’s a new beast entirely when you’re abroad.

Generally, you can expect basic medical expenses to be covered through your travel plan, often including dental. Medicare will not cover medical expenses in a foreign country. If you’re traveling overseas, travel insurance for potential medical costs is worthwhile.

Cover rental car mishaps

Renting a car is a great way to get around when traveling because you can explore a place on your own. Using taxis or ride-share services may cost more money. However, even the best drivers make mistakes, and no one can protect themselves from reckless drivers.

Your U.S. car insurance won’t cover you when driving in a foreign country. So choosing the car-rental insurance option when you buy travel insurance may be a good move.

Be aware that most travel insurance rental-car plans cover collisions and may not cover medical expenses, damages to other cars or property, or personal property damage or loss.

7 Nearly Secret Things to Do If You Fly Southwest

Pre-existing conditions often aren’t covered

Unfortunately, as with many health insurance plans, travel insurance often won’t cover pre-existing conditions. Travel health insurance is usually meant for unforeseen illnesses or injuries instead of complications due to an existing medical issue.

Even travel insurance companies that cover pre-existing issues often only cover physical maladies and exclude mental conditions and typical pregnancy-related symptoms and complications.

Protect lost luggage

A big fear for travelers is losing their luggage, either having it not arrive at the destination or stolen during their trip. Most airlines will offer reimbursement for luggage they lose, but it can take quite a while for this to process.

Travel insurance will cover the cost of replacing your clothing and other items while you wait for your luggage to be located and can also cover theft and damage.

Cover valuable items and gear

You should consider buying travel insurance if you’re traveling with valuables, including expensive jewelry, art, or even pricey sporting or adventure gear.

You’ll need to talk to the insurance agency specifically about covering your valuables, as they may need to be insured separately. Depending on your homeowners insurance policy, your jewelry may be covered even when you travel.

Sporting goods, including golf clubs, will not be covered by your homeowners insurance if you’re traveling, so you will need travel insurance to replace them if they’re lost, damaged, or stolen.

Pay no interest until nearly 2025 with these credit cards

Emergencies happen

While we do our best to prepare for the worst-case scenario, we can’t stop life from happening. Things like medical emergencies, a death in the family, or other catastrophes can halt your travel plans.

If you have travel insurance, rescheduling or cancellation fees will be covered, allowing you to deal with the emergency at your own pace. You won’t have to worry about losing the money spent on the trip and subsequent fees.

Natural disaster coverage

Are you planning a fall trip to the Gulf Coast or Florida? Consider your travel destination and the time of year you're going.

If you’re visiting someplace prone to natural disasters, especially seasonal occurrences like tornadoes, hurricanes, wildfires, and such, travel insurance can help you recoup your money should these events interrupt your travel plans.

Similarly, if a natural disaster occurs during your trip, often, insurance will pay to move you to a more secure location.

Extreme adventures may not be covered

Your insurance will most likely cover typical travel-related injuries but don't expect your medical bills to be covered if your itinerary involves extreme adventures or dangerous exploits.

Surfing, sailing, kayaking, bungee jumping, scuba diving, skiing, snowboarding, and other extreme sports do not fall into everyday illnesses or injuries. For these activities, consider getting a specific plan for adventure activities.

Earn up to 5% cash back when you shop with these leading credit cards

Shaky travel companies

If you booked your trip through a travel company and it goes bankrupt, travel insurance may provide a safety net to ensure you get your money back.

Airlines, cruise ships, travel companies, and other travel-related businesses suffered during the pandemic, and many may not be on solid financial ground yet.

This may not be covered in a basic insurance plan, so make sure your agent adds financial default coverage if you are concerned about the health of your travel provider. 

In the situation any company or organization closes or is otherwise inoperable during your trip, you’ll be covered.

Now let’s look at times you may not need travel insurance.

Your credit card offers travel protections

Before purchasing travel insurance, consider which credit card you have. Many of the top credit cards  offer travel protections.

Some protections you may already have include lost luggage, rental car insurance, trip delay, and trip interruption or cancellation.

Credit card programs often don’t cover medical or other interruptions, so consider your priorities before choosing this option.

You have a domestic trip

If you’re traveling within the U.S. and its territories, travel insurance may not be necessary. For example, you won’t need medical coverage as your health insurance should be honored nationwide.

Domestic travel is also usually much less expensive. If you’re taking a cheap, last-minute, or nonstop flight and staying at an inexpensive hotel or rental, the cost of travel insurance may not be worth it.

One exception might be a family trip to Disney World. The estimate for a trip for a family of four in 2023 is more than $6,000, so travel insurance might be money well spent in this case.

5 Signs You’re Doing Better Financially Than the Average American

Don’t add expense to cheap trips

Not all travel is planned. Whether traveling for work, a family emergency, or just a last-minute vacation, you likely don’t need insurance in these circumstances. Odds are, you’re packing light, and both your flight and hotel are relatively inexpensive.

In these scenarios, the things insurance covers won’t be relevant, including baggage loss, flight cancellations, hotel issues, and so on. 

Not only will these costs likely be minimal, but they can be disputed with your airline or hotel, although it may take a little while to get your money back.

The airline has a flexible rebooking policy

If you’re buying travel insurance to cover the cost of rescheduling a flight, you’re better off purchasing a refundable ticket at a higher price. And some airlines have more flexible policies now.

Many airlines allow last-minute ticket changes and will even help you reschedule your flight within a specific timeframe. The timeframe and policy vary by airline, and you may be subject to a nominal cancellation or rebooking fee, but it will be significantly less than insurance.

Insurance will not cover political unrest

One emergency situation insurance probably won’t cover is war or political unrest. If you’re visiting a location with political tensions and your trip is canceled as a result, don’t expect your insurance to cover the costs.

Insurance companies generally follow the travel advisories the U.S. State Department issued for medical and political situations.

Similarly, insurance won't cover these costs if you have to leave your trip early for safety concerns. Consider your destination's political environment before booking your travel or buying insurance.

9 Things You Must Do Before The Next Recession

Your hotel may cover cancellations

Many hotel cancellation policies have tiers depending on the booking you make. For example, some may have free cancellation within a specific period, while others charge different rates for rooms booked as non-refundable or partially refundable.

If your sole reason for purchasing insurance is hotel flexibility, consult with the hotel before you book. They may have a policy as flexible as your insurance or can work with you should something unexpected arise.

Penalty-free cancellations for major hotels tend to be around 24-48 hours prior to arrival.

Bottom line

Travel insurance may be pricey, but it’s a lifesaver in many situations. However, in others, it’s overkill and a waste of money.

Every travel situation is different, so consider your specific needs when purchasing. And, if you want more money to cover your insurance, consider these ways to make extra cash for travel funds.

More from FinanceBuzz:

• 7 things to do if you’re barely scraping by financially.
• 12 legit ways to earn extra cash.
• Can you retire early? Take this quiz and find out.
• 9 simple ways to make up to an extra $200/day

More for You

Stephen Hawking once gave a simple answer as to whether there was a God

Are Stocks Going to Plunge if Donald Trump Wins and Congress Is Split? Here's What History Says About Stock Market Returns in This Scenario.

Flight attendant explains why you should always throw a bottle of water under hotel beds

12 Baby Boomer Fads That Were Actually Dangerous

Fani Willis' New Move In Trump Case

The Only Major Actors Still Alive From Gilligan's Island

Angel Reese clotheslined as WNBA veteran gets ejected: 'I kept going and kept pushing'

How to Avoid This Common Misdiagnosis: What A Brown Recluse Bite Looks Like

Doctor shares what happens to our bodies moments before we die

Lady Gaga rocks car part on red carpet to delight of fans: ‘Weird Gaga is back’

Jack Smith Lays a Trap for Aileen Cannon

The best TV show released every year since 1950, based on data

Carnival Cruise Line warns passengers about a dangerous mistake

The Popular Beverage That Can Unclog Your Sink Drain In A Pinch

How to stay asleep all night if you keep waking up — an expert explains

Older People Are Holding Nothing Back About What It's Really Like To Get Old

‘The decision I needed to make’: Kevin Costner took out a mortgage on seaside Santa Barbara estate to fund epic western project, sending accountant into a ‘conniption fit’

The most striking Cadillacs ever made

‘Putin’s patience snapped’: Insiders marvel at Russia’s military purge

Californians Protest Fast Food Price Rises by Spending Elsewhere: ‘I Feel Ripped Off’