Do you have to have car insurance to hire a car?
This is a common question that gets asked and the answer is, “Yes”, if you plan to hire and drive a car in Australia.
Do you have to have insurance on a car in Australia?
Every car that is driven on the road in Australia must have third-party insurance. If the driver of a car gets into an accident with another vehicle, they are automatically covered for any costs to the other vehicle that was involved in the accident.
Is it necessary to purchase insurance when renting a car?
It depends on any other cover that you may have. You may have received complimentary cover from your credit card provider. However, if you use your credit card to pay for an insurance policy with the rental company, it may void any policy that you had with your credit card company.
There is an article on Choice that also shows an infographic that displays the car insurance costs when hiring a rental car.
Do rental cars come with insurance?
Usually, the rental company will provide you with a loss-damage waiver (LDW), also called a collision damage waiver (CDW).
Should you damage the rental car or the vehicle gets stolen, it means that the rental car company won’t come after you. However, this isn’t insurance.
Insurance is usually offered separately and you can choose to sign-up for the insurance offering from the rental company or use another provider such as an insurance policy offered by your credit card company.
Does travel insurance cover car hire excess?
This depends and you will need to double check with your credit card company. Most insurance policies don’t cover car hire excess. You will need to review the policy to see the excess amount that you would need to pay before the insurance company would cover any additional costs.
If you would like to search for a car rental quote, you can also use the search box below.