Renting a car is one of the easiest ways to get around on holiday — no waiting on public transport, no fixed schedule. But if the rental is damaged or stolen, you can be held liable for a payout running into the thousands. That’s where car hire excess insurance comes in — it’s what stands between you and that bill.
Here are five essential things to know so you’re properly covered without overpaying.
What Is Car Hire Excess Insurance?
Rental cars are fully insured, but you, the hirer, are still liable for an “excess” if the car is damaged or stolen — typically a few thousand dollars. Car hire excess insurance is an optional policy that reduces that liability, often down to a few hundred dollars instead. It’s never added automatically — you choose whether to take it.
Way 1: Add Excess Reduction When You Book
The simplest option is adding excess reduction directly through the rental company at the time of booking. With Ace Rent A Car, for example, an extra $12 a day on a standard sedan reduces the damage liability from several thousand dollars down to $500. The cost varies by vehicle — you’ll see the exact figure when you book online.
Way 2: Check What Your Credit Card Already Covers
Some credit cards include complimentary rental car excess cover as a travel insurance perk — worth checking before you pay for cover twice. Canstar’s comparison of credit cards with rental car excess cover is a useful starting point, though the exact terms vary by card and often require you to book the rental with that card.
If you’re already covered by a travel insurance policy, it’s worth checking whether it includes rental vehicle excess too — Smartraveller’s travel insurance guide explains what to look for in the product disclosure statement.
Way 3: Know What Voids Your Excess Cover
Even with excess reduction in place, it won’t apply if you breach the rental agreement. Common exclusions include:
- Having an unauthorised person drive the vehicle
- Driving under the influence of alcohol or drugs
- Not following traffic laws
- Driving on unsealed or unauthorised roads
- Using the incorrect fuel type
- Driving recklessly or negligently
Any of these can void your cover entirely, leaving you liable for the full repair cost — so it pays to stick to the rules of your rental agreement.
Way 4: Compare the Excess Amount, Not Just the Daily Rate
A cheap daily rate can be misleading if it comes with a much higher base excess. When comparing rental companies, check the actual dollar figure you’d be liable for, not just the headline price — a slightly higher daily rate with a lower excess is often the better deal overall.
Way 5: Check the Excess Cost for Your Vehicle Type
Excess amounts usually scale with the vehicle — a SUV, ute, van or minibus typically carries a higher excess than a small sedan, simply because repairs cost more. Ask for the exact figure for your vehicle class when you book, so there are no surprises.
Car Hire Excess Insurance FAQs
Is car hire excess insurance compulsory?
No. It’s entirely optional and won’t be added to your booking without your authorisation — but without it, you’re liable for the full excess amount if the car is damaged.
How much does car hire excess insurance cost?
With Ace Rent A Car, it’s an extra $12 a day on a standard sedan, reducing liability to $500. The cost varies by vehicle class.
Does my credit card cover rental car excess?
Some cards include this as a complimentary benefit, but terms vary — you’ll usually need to have booked and paid for the rental with that card. Check your card’s product disclosure statement to confirm.
What voids car hire excess cover?
Breaching the rental agreement voids it — this includes unauthorised drivers, driving under the influence, reckless driving, using the wrong fuel type, or driving on unsealed roads.
Does the excess amount change depending on the vehicle?
Yes. Larger or higher-value vehicles like SUVs, utes, vans and minibuses generally carry a higher excess than a standard sedan.
Ready to Book With Confidence?
Adding excess reduction takes seconds at checkout and can save you thousands if the unexpected happens. Get a quote and hire a car in Perth with Ace Rent A Car, or call 08 9472 4222 if you have questions about your cover.