If you are planning to ditch your vehicle and hire a rental car for that next Australian road trip, you might be thinking about how rental car insurance Clayton works and what coverage is available. This is our guide to the world of excess rental car insurance and where to get this coverage.
If you are at the desk of a car rental company, one of the first and most frequently asked questions by the service agent is whether you’d prefer to purchase insurance for excess charges on your rental vehicle. Car rental insurance in Clayton is usually offered at an expensive cost and is added in addition to the price of the rental. Is it really worth the cost?
When you pick up your rental vehicle, it’s best to learn about the excess insurance on rental cars, what it will include, and how you can locate this type of coverage outside of the car rental business.
What is rental car insurance?
When you rent a vehicle in Australia, compulsory third party (CTP) (also known as Green Slip car insurance) and standard liability insurance are often included in the rental price. While CTP insurance will cover you for injuries you could cause others in an accident on the road, the standard liability coverage, which is often referred to as loss or collision damage waiver (LDW or CDW), is able to lower your responsibility for damages to the rental vehicle as well as the property of third parties. Rental firms and rental companies often distinguish between LDW and CDW, with LDW providing protection against the theft of a rental car.
It’s crucial to understand that CTP insurance will not protect you from any injuries you suffer during an accident when driving a rental car. Certain hire companies might provide personal accident insurance to protect against the cost of this. Additionally, even though the standard liability insurance is usually offered with car rental in Australia, it is worthwhile to confirm the coverage is in place prior to renting a car.
Standard liability insurance is covered by a range of exclusions, including violations of the rental agreement or damage to certain components of a car (e.g. headlights, windshields, and even tyres). Additional insurance might be required for those who want to be covered for the damage or other damages, whether through the rental car provider or through a different provider. Since there are a variety of differences between policies for insurance on rental cars, it’s essential to review these terms and conditions contained in the policy disclosure statement (PDS) attentively and be sure to ask any questions you are unsure about prior to booking.
What is excess insurance?
The excess on car insurance for rental Clayton is designed to decrease or eliminate the charge for excess imposed by a rental firm if the vehicle you hire is stolen or damaged. The excess is the amount you have to pay out of pocket in the event that you are able to claim the standard liability insurance.
If you don’t want to cover the amount of excess specified in your rental contract, it is possible to reduce or even eliminate it by purchasing excess insurance. This insurance option can vary in cost from one provider to the next and is contingent on the kind of car you’re hiring as well as the length of time you’ll be renting it for. Based on Flight Centre, rental excess insurance costs can range between $20 and $65 per day. Remember that these insurance policies only protect the amount of excess you’re responsible for, as well as a wide range of exclusions.
What are the most common rental insurance coverage exclusions from excess car insurance?
Several limitations apply to insurance for rental cars in Clayton. The exclusions vary based on the insurance company as well as the level of protection that is provided and the terms and conditions of the rental agreement.
A few common scenarios in which coverage could be excluded from an excess insurance policy for rental cars include:
Infringing on the lease agreement (such as not obeying the rules of the road or driving on public and sealed roads, driving when under the influence, and permitting an unauthorised person to operate the vehicle).
- Driving without the proper license
- Intentionally causing damage
- Water damage
- Administration fees and towing charges (unless included in a policy at an additional cost)
- glass, windscreens, tires, roofs, or underbody (unless it is included in the policy at no extra cost)
- Accidents that involve a single vehicle (such as a collision with a bridge, tree, or tunnel)
- Making the wrong choice of fuel
For more details on the limitations and exclusions on your excess rental insurance, it’s recommended to review the policy’s product declaration policy (PDS) along with the policies in-depth and also the rental contract.
Where do you get rental car insurance?
Insurance for a rental car Clayton is offered by many car rental companies like Luxury Cars and provides additional insurance for rental cars Clayton that is typically added as a daily charge on top of the daily rental fee.