Does Travel Insurance Cover Car Rental in Australia?

Does Travel Insurance Cover Car Rental in Australia
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Does travel insurance cover car rental in Australia? The finest travel insurance is a plan that covers you and your vacation precisely. The finest travel insurance in Australia is something that everyone is seeking, yet no one business can be said to be the best overall.

Each traveller and each vacation are unique. Obtaining quotes and comparing benefits are the two steps to locate the best coverage for you. You should be able to select a travel insurance coverage that stands out from the crowd by comparing several of them.

You’ll need domestic travel insurance if you’re on a road trip or travelling anywhere in Australia and international travel insurance if you’re going abroad. You must be an Australian citizen or a permanent resident of Australia to be eligible for our domestic or international policies. Additionally, you must have a valid Australian Medicare health card.

What Is Excess Insurance For Rental Cars?

Rental car excess insurance might help to shield you from costs associated with the theft or damage of your rental automobile while you’re on the road.

Insurance coverage protects you against paying an insurance excess if your automobile is stolen or destroyed since your rental car insurance usually compels you to do so. We at Cover-More call this the rental car insurance excess.

Travel Insurance That Includes Rental Car Excess Coverage

From April to July 2019, these are the top manufacturers for vehicle rental excess on Finder. Except for Fast Cover, all of these companies automatically include rental car excess insurance in their policy, saving you the added cost of purchasing additional protection.

1 Cover Budget DirectAustralian PostFast Cover
Limit On International Politics$5000$6000$3000Optional Add-on
Limit On Domestic Politics$5000$4000$3000$5000

Is Driving Vacations Covered By Cover-More Travel Insurance?

We provide three distinct forms of coverage for travellers who are making road trips to assist in keeping them safe while driving:

Rental Car Insurance Excess: This coverage, offered on our Domestic/International Comprehensive and Comprehensive+ Plans and the Inbound Plan, solely applies to the excess on your rental car.

Rental Vehicle Comprehensive Cover: This additional coverage is only available with our Domestic/International Comprehensive+ Plan and only applies to your rental car.

Personal Vehicle Insurance Excess: If you have comprehensive auto or motorbike insurance for the individual vehicle you’re using for your Australian road trip, then this coverage is applicable. The only plans that include it are our Domestic Comprehensive and Comprehensive+ Plans.

What Does Cover-More Classify As A “Rental Vehicle”?

Cover-More provides coverage for more than just rental cars. A “rental vehicle” is a vehicle that has been:

a campervan, motorhome, or caravan weighing no more than six tonnes

  • SUV
  • Sedan
  • Car station
  • Hatchback
  • Persons moving
  • Coupe
  • Convertible
  • Driven with four wheels or a minibus

Which is rented from a firm, agency, or automobile club duly authorised to rent out motor vehicles. A motorbike or moped is also regarded as a “rental vehicle” if you have added our motorbike/Moped Cover to your policy for an extra cost.

If I Drive My Car, Will Cover-More Still Provide Coverage?

We can assist if you’re considering a self-driving vacation in Australia. After all, not all domestic road trips require renting a car, especially if you already have a car and can drive or ride it to the place you want to go.

What Does The Personal Auto Insurance Excess From Cover-More Cover?

Personal vehicle insurance excess coverage is available for up to $2,500 with our Domestic Comprehensive and Comprehensive+ Plans. It is perfect for self-driving vacations in Australia because you can travel there with your car or motorcycle. However, you may only use this coverage if your vehicle is covered by comprehensive auto or motorcycle insurance.

What Is Covered By Travel Insurance That Includes Rental Car Excess?

What a good travel insurance plan can cover is as follows:

  • If the vehicle is destroyed or stolen, the excess. An automobile rental business will charge you an excess fee if your rental vehicle is stolen, damaged, or involved in an accident. Rental car excess insurance is available with the most comprehensive domestic and international travel coverage.
  • Transporting the car back to the depot where it was rented. You might be unable to drive your rental car to the closest depot if you get sick or injured while travelling. In this situation, if you can provide written confirmation from your medical advisor stating that you cannot drive, several insurers will cover the expense of returning the automobile to the closest depot.
  • If you get into an accident, medical costs. Travel insurance will pay your medical expenses if you are hurt in an accident while travelling. Your travel insurance can cover the costs if you damage your automobile and require emergency transportation, medical care, hospital lodging, or even repatriation to Australia. Ensure you know the exclusions in your policy before you get behind the wheel. You won’t be covered if you violate an exclusion on your policy, such as failing to adhere to the local traffic laws.

Before you go behind the wheel, make sure you are aware of the exclusions in your policy because if you violate one, such as failing to abide by local traffic laws, you won’t be covered by it.

Compare The Costs Of Foreign Automobile Rental Excess Insurance

Here is a table with our best-selling travel insurance with vehicle rental excess cover brands to compare pricing. Prices are based on a 30-year-old travelling to New Zealand for seven days.

1 Cover(Comprehensive)Budget Direct(Comprehensive)Australia Post(Comprehensive)Fast Cover(Comprehensive)
Limit On International Politics$5000$6000$3000Optional Add-on

Compare Domestic Rental Car Excess Insurance Costs

Here is a comparison of the costs for domestic travel insurance with car rental excess. Prices are based on a 30-year-old travelling for seven days.

1 Cover(Domestic)Budget Direct(Domestic)Australia Post(Comprehensive)Fast Cover(Domestic Plus)
Limit On International Politics$5000$4000$3000$5000

What coverage for driving holidays does Cover-More not offer?

Our travel insurance needs to be more comprehensive and was designed to safeguard our customers from unanticipated events. You need to know terms and exclusions if you’re considering covering your trip with one of our all-inclusive Cover-More travel insurance plans that cover driving holidays. This covers the terms of our complete rental vehicle coverage and our insurance excess benefits for personal and rented automobiles.


Does Car Insurance Apply To Travel?

Most comprehensive travel and domestic insurance policies include excess automobile rental for free or at an additional cost.

Can You Drive A Rental Car Across Australia?

Throughout Australia, Budget offers a variety of one-way car rental packages at specific seasons of the year. Contact Budget if you want to start in North Queensland and end in Victoria or if you need to pick up and return your rental car at the airport.

What Does Travel Insurance Cover?

Travel insurance covers many things to ensure your living after any disaster. Most plans often include a variety of trip protections, such as unintentional injury or death, delayed or lost baggage, emergency medical care and evacuation, trip cancellation, delay, or interruption, and more.

Does Australia’s Automobile Rental Insurance Include A Visa?

Some nations may not include rentals. For instance, ordinary Visa and Mastercard coverage does not cover rentals in Israel, Jamaica, and Ireland. In Italy, Australia, and New Zealand, American Express won’t pay.

How Many Days Are Covered By Travel Insurance?

The majority of travel policies have a maximum trip duration, which is typically 30 days. Longer breaks will require more comprehensive trip cover because this differs between carriers. There is additional long-stay travel insurance available if 90 days are still insufficient.

Final Words

Finally, the question is, does travel insurance cover car rental in Australia? Actually, if your rental car is involved in an accident, is damaged, or is stolen, you may be responsible for paying the excess, which may run into thousands of dollars, whether you are in Italy or are travelling within Australia.

Rental car excess is always covered when you have a 1Cover Comprehensive policy. This implies that regardless of whether the theft or damage was your fault, we will cover the extra that the rental car company may charge you up to $5000 if you rent a car and it is involved in an accident, damaged, or stolen. 

Hi, I'm Md Abid Hasan. The owner & content editor of is a travel blog that covers road trips, day trips, and destinations guide.

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