Renting A Car While On Holiday

Renting a car while on holiday provides you with greater freedom, flexibility and independence to travel where you want, when you want. It's also gives you the opportunity to see more of the places you're visiting as well as travel much more comfortably! When you rent a car on holiday it's often a fantastic alternative to planes, trains, buses, and taxis, and is usually works out to be very affordable. 

All that being said, if your rental car is involved in an accident or is damaged or stolen you could be liable to cover the cost of the rental car excess which can cost several thousand dollars. Rental companies may encourage people to pay to reduce excess, but even this works out to be very expensive as they nearly always charge high daily "excess reduction" rates**. Basically, it's just not worth it! 

1Cover's travel insurance provides cover for the rental vehicle excess (or the cost of repairing the rental vehicle if this is cheaper) if you hire a rental car and it is involved in an accident, or if it is damaged or stolen. 

With a 1Cover Domestic and Domestic Frequent Traveller policy you are automatically covered up to $5,000 for your rental vehicle insurance excess, with the option to increase it to $10,000 by paying an additional premium.

On the other hand, with a 1Cover Comprehensive, Overseas Frequent Traveller, and Already Overseas policy, rental vehicle insurance excess coverage is not included automatically. Under these policies, you can add cover for your rental vehicle insurance excess up to $10,000 by purchasing the Rental Vehicle Insurance Excess Pack and paying an additional premium.

We also cover you up to $500 to return your rental car if you are seen by a medical advisor as unfit to do so. 

**Please note some rental companies excesses do not cover some types of damage (including but not limited to windscreen, tyres etc) and a liability reduction package/damage waiver may need to be purchased to cover these. Always refer to the terms and conditions on your rental agreement to be aware of what is and is not covered.

Tips For Safe Car Hire

• Always inspect the vehicle before hire and document any damage with the sales assistant, no matter how minor the damage is. You should usually be given a vehicle diagram with all marks and scratches highlighted, amend this accordingly.
• Take photos of the vehicle you drive off with it and also at the end of hire. Especially if there is damage to the vehicle before you leave.
• Try and plan that you pick up and drop off the vehicle from the same place to avoid one-way fees. Also avoid hiring or dropping off vehicles from airports if you can as many charge more.
• Always discuss your options about what happens in the case of an accident, including what you will be liable to pay. Always read the terms and conditions.
• Rental car companies all have different policies when it comes to accidents. Always discuss their policies when it comes to events like single vehicle accidents, windscreen, wheel or tyre damage, overhead and under body damage and water invasion.
• Don't break the law, this will mean your insurance is not valid.
• Always fill up the petrol as close as you can to dropping it off and keep your receipt to avoid a refuelling fee.
• In the event of an accident or theft of the vehicle always get copies of paperwork like police reports, invoices, vehicle repair documents, and anything else that you will need to support your insurance claim.
• Just in case your vehicle is later damaged by the rental company after your return of the car always aim to return your car during opening hours and get a staff member to inspect it immediately.

Learn More about what's Covered with 1Cover