Car Rental Insurance Australia

Credit card coverage varies significantly from one provider to another. Many policies do cover vehicles in Australia, but some such as American Express on certain cards, specifically exclude it.

Credit card insurance is usually secondary coverage: it kicks in only after a primary policy, like your personal auto insurance, has been applied. That's why it typically covers the rental car deductible and other gaps your primary policy leaves. Since personal auto insurance often doesn't extend overseas, some credit card policies switch to primary coverage when you're traveling internationally.

Coverage for Australia can still come with exclusions, so check with your card provider directly if you're unsure what's included.

Rental desk insurance in Australia typically covers you for the basics, but leaves some real gaps.

When you rent a car in Australia, Compulsory Third Party (CTP) insurance is included as a legal minimum, and a Collision Damage Waiver (CDW) is almost always bundled in too.

That's a reasonable level of cover, but CDWs commonly exclude:

• Windscreen and headlight damage.
• Underbody damage.
• Lost keys.
• Additional driver costs.

Rental companies often sell a step-up, a Super Collision Damage Waiver (SCDW), to close these gaps. However, this is often significantly more expensive than alternatives like RentalCover, which cover the same exclusions.

Some travel insurance policies include a level of rental vehicle cover. For example, some policies offer rental vehicle excess/deductible insurance, covering your out-of-pocket costs if you make a claim with another insurer, like your rental car company.

Your travel insurer typically won't offer primary cover for damage or theft to the rental vehicle itself.

The insurance that's legally required to drive in Australia is automatically included in your rental's daily price.

Additional cover from providers like RentalCover can bolster your peace of mind, filling gaps often excluded by rental company cover, with nothing to pay out of pocket if you need to claim.

On average, the cost of RentalCover protection comes to $20 a day. Rental vehicle insurance from car rental companies comes to around $70 to $90 a day.†

Generally, no. Your Australian car insurance policy won't cover you while travelling overseas. Check your product disclosure statement or contact your insurer for precise details.

Car hire excess insurance offers financial protection if things go wrong while driving a rental vehicle. Outside the United States and Canada, your rental price usually includes a Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW).

Your CDW/LDW reduces your liability if the rental car is damaged or stolen, similar to basic insurance. However, it usually comes with a high excess, meaning you could still face significant out-of-pocket costs.

Car hire excess insurance covers that excess. You can buy it from the rental desk, or choose an alternative provider that may offer better value.

Most Australian rental companies require drivers to be at least 21. Drivers aged 21–24 usually face a young driver surcharge, typically $15–$35 a day, depending on the company. Some providers also restrict which vehicle categories are available to younger drivers. Drivers over 75 may face restrictions or need a medical certificate with certain rental companies.

RentalCover's age requirements vary by protection type, so check your coverage terms for specific limits. It's worth confirming your rental company's age policy before booking, as fees and conditions vary between providers.