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Car Rental Excess Insurance

What Is Rental Car Excess Insurance?

Whether you’re in Italy or travelling within Australia, if your rental car is involved in an accident, is damaged, or stolen, you could be liable to cover the cost of the rental car excess which can cost you thousands of dollars.

On the other hand, with a 1Cover Comprehensive policy, you’re automatically covered for your rental car excess (or the cost of repairing the rental vehicle if this is cheaper). Keep reading to learn more...


hire car  Accidents & damage

We cover up to $5,000 for the excess you could be charged if you have an accident, whether it was your fault or not.  


car damage

 all types of Vehicles

We cover campervans/motorhomes that do not exceed 4.5 tonnes, sedans, hatchbacks or station wagons, four-wheel-drives or mini bus/people movers.




stolen vehicle


 stolen vehicle

We cover up to $5,000 for the excess you could be charged if your rental vehicle is stolen whilst in your care.


formal wear  Car Return

 We cover up to $500 for the cost of returning your rental vehicle to the nearest depot if a doctor advises you are unfit to drive. 



rental car excess Explained


Avoid Ben and Susie's fate and make sure you're covered today!


What does Car Rental Excess Cover?

  • You have provision to claim even if the damage or theft to your car was not your fault. Our policies will automatically cover you up to $5000 for the rental car excess that could be incurred in the event of an accident, whether it's your fault or not.

  • Increase and protect yourself from exorbitant rental company fees. When you’re purchasing your policy, you can increase your excess amount to $6000, $7000, or $8000. This is particularly useful for larger vehicles, such as campervans.

  • Cover for accidents, damage or stolen vehicles. Cover is provided for the rental 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, is damaged or stolen.
  • Cover for return of your rental car. You have provision to claim for $500 to return your rental car, if you are seen by a medical advisor and you are deemed unfit to return the car yourself.

Plus you'll get cover for all the other things that may go wrong on holiday. With our overseas comprehensive policy you'll be covered for lost luggage, cancellation of trip, medical emergencies and much more. 

Please read the full policy wording in our Product Disclosure Statement for more details including full terms and conditions, limits and exclusions that apply. Find out all the things you can do to make sure you hire a car safely.


Wheely good Cover

  • Don't pay over-the-odds at the rental depot for your car hire excess. Instead of succumbing to the tactics at the counter, get a 1Cover Travel Insurance policy which automatically covers your rental vehicle excess for less. 



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Table of Benefits - Rental vehicle excess Travel insurance

Rental vehicle excess is included in most of our travel insurance policies (except for Medical Only). Check out the full list of benefits for these policies below.
Policy Benefit Overseas Comprehensive
(Single-Trip & Frequent Traveller)
Domestic Comprehensive
(Single Trip & Frequent Traveller)

Overseas Emergency Medical Assistance



Overseas Emergency Medical & Hospital Expenses



Includes Dental Expenses (per adult)



Resumption Of Journey



Hospital Cash Allowance



Repatriation Of Remains



Permanent Disability



Loss of Income



Credit Card Fraud & Replacement



Includes Travel Documents & Traveller's Cheques



Theft Of Cash



Luggage & Personal Effects



Luggage & Personal Effects Delay Expenses



Additional Accommodation & Travel Expenses



Includes Family Emergency



Includes Emergency Companion Cover



Cancellation Fees & Lost Deposits



Disruption Of Journey



Alternative Transport Expenses



Personal Liability

$5 million

$5 million

Domestic Pets



Domestic Services



Rental Vehicle Insurance Excess


Rental Vehicles Excess Add-On 
Choice Of:
Choice Of:

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Rental vehicle excess FAQs

  • What is rental vehicle excess Insurance?
  • When you hire a car, you’ll be asked if you want to take out excess insurance, which eliminates the excess charged by your rental company should you have an accident, or the vehicle is damaged. You will be charged a daily fee on top of the cost of the rental for this which is usually overpriced. Our travel insurance covers for this excess insurance whether you’re renting a car in Australia or Overseas, so you don’t need to pay for it at the depot.

  • What does Rental Car Excess Cover?
  • There are several rental vehicle excess cover amounts across our different plans. We will reimburse you up to the rental vehicle excess insurance amount listed on your policy, covering any excess or deductible you become legally liable to pay under your rental vehicle hiring agreement.

    It is payable if your rental vehicle is involved in an accident while you are driving, or if the rental vehicle is damaged or stolen while in your custody.

    Please be aware this benefit does not take the place of rental vehicle insurance. Also, the following conditions must be met for cover to be available under this benefit:
    1. The rental vehicle must be rented from a recognised rental agency;
    2. The hiring arrangement must incorporate motor vehicle insurance or damage waiver against loss or damage to the rental vehicle; and
    3. You must comply with all requirements of the rental agency under the hiring agreement and, if applicable, the insurer under such insurance.

  • Are scooters and motorcycles covered under rental car excess?
  • Rental vehicle excess cover is not applicable to scooters and motorcycles, and is also not available with our Medical Only policy.  

  • Do I Need To Purchase The Additional Cover Offered By The Rental Company?
  • If the car company is offering you additional cover they are usually referring to an excess reduction fee which is paid to the car company to reduce the excess on the motor vehicle insurance to $0.

    1Cover offers you cover for this rental vehicle insurance excess. But note that this doesn’t take place of the rental vehicle insurance.

    We don't cover you for personal liability while driving/riding - this cover should be sought through your car rental company.

  • When Making A Claim For Rental Vehicle Excess What Documents Will I Need?
  • You must provide a copy of:
    • your Rental Vehicle agreement;
    • an incident report that was completed;
    • repair account;
    • an itemised list of the value of the damage; and
    • written notice from the rental company or agency advising that you are liable to pay the excess or liability fee.

  • What Vehicles Are Covered with rental vehicle excess insurance?
  • When we refer to “Rental Vehicle” we mean a campervan/motorhome that does not exceed 4.5 tonne, a sedan, hatchback or station-wagon, four wheel drive or mini bus/people mover rented from a licensed motor vehicle rental company.

  • Are wheels or tyres covered?
  • Yes, only if the rental vehicle insurance also covers it. Our insurance does not cover your liability in respect of tyres, windscreens, roof and underbody damage, if you are not already covered by the protection from the rental company under the Rental Vehicle agreement.  

  • How much is rental car insurance in Australia?
  • Generally speaking, if you're hiring a car out of a Sydney airport rental company (for example) you can expect to pay around $70 dollars per day for your rental vehicle excess, whereas domestic travel insurance with 1Cover can be as little as $47 with rental excess includeed. Prices based on quote with a 35 year old, prices will vary depending on age and trip details. 

  • What Is Not Covered With Rental Car Excess?
  • Rental car excess doesn't take place of normal car insurance, and we won't pay any claims if you violate your rental car agreement.
    Additionally, if you're affected by alcohol or illegal drugs we won't be able to pay your claim.

    If you don't hold the correct licence for the vehicle you're operating then you won't be covered. A correct license means an Australian driving license, and wherever an Australian driver's license is not valid, you'll need to have an additional international driver's license as well. Terms and conditions, limits and exclusions apply. Please see PDS for full details.



other helpful travel guides

What does rental excess Include?

Find out what rental vehicle excess covers with our handy FAQS.

What to pack?

The ultimate packing checklist from our travel expert Ben Groundwater.

Domestic Travel Insurance

Campervanning around Oz? Learn about domestic travel insurance when holidaying around Australia. 

Tips For Safe Car Hire

Renting a car on holiday can be fun, but you need to be a little savvy so you don't get caught out. Check out our tips for making the most hiring a rental car.


Why Choose 1Cover Travel Insurance?

Trusted by 2 Million customers

Since 2003, we've provided travel insurance to more than 2 million happy customers around the world. We don't focus on anything else but travel insurance, and that makes us specialists in the field.

Award winning Insurance 

We’re proud to be awarded for our quality products and services. We recently won Mozo's 2023 Experts Choice Award for Exceptional Value Comprehensive Travel Insurance. As well as Product Review's Travel Insurer of the Year in 2019.

Local Customer Service

Our customer service specialists are based in Sydney and operate from Monday to Friday.  Whether you're buying a policy or making a claim, you can be sure one of our caring, knowledgeable customer service legends will be able to help you out. 


24/7 Emergency Assistance

The one time you really need travel insurance is in case of emergency. With 1Cover, you have 24/7 emergency assistance at all times - so when one thing goes really  wrong, we'll be there to help you.  

Pre-Existing Medical Cover

Unlike many other travel insurers, we automatically cover 35 conditions under our policies. We know everyone is different and that's why our medical team assess each pre-existing condition on a case by case basis.

Fast Claims 

If you want your claim paid quickly, and you don’t want to deal with a complicated claims process, then use 1Cover. Just make sure you have all your receipts and relevant documents handy.

Still Need Some Help? Contact Us!

If you have any other questions or queries, please visit our Contact Us page. 
If you are experiencing an emergency, please use the details on our Emergency Assistance page.