It may seem convenient to use a rental car company’s car excess insurance, especially when you’re eager to get started on your holiday. This option, however, isn’t always viable for your holiday pocket, as some car rental companies’ excess fees can be exorbitant. Choice revealed in 2015 that buying rental car insurance can see you paying up to around 490% more than purchasing coverage under a basic travel insurance policy.
Moreover, certain waivers you may pay for, like a collision damage waiver, may not cover certain scenarios. Some damage exclusions may include:
If you were to experience any of these exclusions while travelling, your excess would not be reduced.
Your peace of mind may become quite expensive with rental companies’ reduction fees. While it may sound beneficial to limit the amount of excess you would be required to pay should the unexpected happen, it may not viable for longer travel periods.
Domestic travel insurance can be a much cheaper alternative to forking out a car rental company’s excess reduction fees, especially if you’re going on a long road trip in Australia. On top of this, international travel insurance has you covered against other unfortunate scenarios, like loss of possessions and falling ill while travelling overseas.
It is important to note that most insurers will not cover your excess if you are in breach of your car rental agreement. Certain scenarios that can break many rental agreements include:
If terms like these are breached, your liability can go beyond the rental car company’s standard excess amounts.
When making a claim to your travel insurer, be aware that you will need to pay the rental car company excess upfront. You would then submit your claim with supporting documents and, once assessed by your insurer, your excess would be reimbursed. This may seem like a hassle for some, but the potential savings and added peace of mind is often worth the cost.
While planning a trip in Australia or overseas can be exciting, it can also become timely and costly. Understand and find the right type of travel insurance and car excess coverage by comparing travelling insurance policies. Happy planning!