Car Hire Excess
Mar 1st, 2007, 02:34 PM
#2
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"Excess" is the renter's portion of any insurance claim arising from damage occasioned to the vehicle whilst in the renter's possession.
Usually the standard range is $2500 - $3000, and can be reduced by the payment of CDW (Collision Damage Waiver) fee. This is usually in the range of $25-35 /day, depending on the category of vehicle rented.
In most companies the excess is per rental period. In a few it is per event.
As you can see, it can double your daily rental cost, and isn't usually discussed in the preliminary rental quotes, so the "25/day" looks a lot better than it actualy is. Usually it's when you're completing the paperwork that the clerk points out the insurance excess & asks whether you'd like to take out CDW to reduce it. Faced with the option of $2500 for a scratch, one usually rolls over & ticks the box for the extra $25 or whatever/day.
Some travel insurance policies can be endorsed to cover the excess (Covermore in Australia does & it's about $50 per $2k, I think). Some credit cards do too, but you need to double check that yours covers Australia & NZ because some exclude them.
In Sydney & Perth I use Bayswater car rentals because their excess is only $200.
Usually the standard range is $2500 - $3000, and can be reduced by the payment of CDW (Collision Damage Waiver) fee. This is usually in the range of $25-35 /day, depending on the category of vehicle rented.
In most companies the excess is per rental period. In a few it is per event.
As you can see, it can double your daily rental cost, and isn't usually discussed in the preliminary rental quotes, so the "25/day" looks a lot better than it actualy is. Usually it's when you're completing the paperwork that the clerk points out the insurance excess & asks whether you'd like to take out CDW to reduce it. Faced with the option of $2500 for a scratch, one usually rolls over & ticks the box for the extra $25 or whatever/day.
Some travel insurance policies can be endorsed to cover the excess (Covermore in Australia does & it's about $50 per $2k, I think). Some credit cards do too, but you need to double check that yours covers Australia & NZ because some exclude them.
In Sydney & Perth I use Bayswater car rentals because their excess is only $200.
Mar 1st, 2007, 03:46 PM
#3
Excess = deductible.
Because the excess can be ridiculously high in OZ and NZ, it's my practice to shop around for the lowest excess, instead of the lowest car rental price. I then don't feel the need to purchase the additional insurance, which can drive up the price significantly.
If you're renting out of Perth, be sure to check out M2000 also - lowest excess I've found, although it sounds as if Bayswater may be lower - not sure if there's a difference in cars though. We usually rent a four dour sedan from M2000 and the excess is $440 ($1000 for single car accident -such as hitting a kangaroo or a tree).
It's been my experience that US issued Mastercard will NOT cover rentals in OZ and NZ, because they require that you decline ALL offered insurance. Some insurance is included with rentals in OZ and NZ so it's impossible to decline it all.
However, a helpful Fodorite recently pointed out that US issued Visa WILL cover the excess on rentals in OZ and NZ. I've verified this with my Visa and they DO.
Because the excess can be ridiculously high in OZ and NZ, it's my practice to shop around for the lowest excess, instead of the lowest car rental price. I then don't feel the need to purchase the additional insurance, which can drive up the price significantly.
If you're renting out of Perth, be sure to check out M2000 also - lowest excess I've found, although it sounds as if Bayswater may be lower - not sure if there's a difference in cars though. We usually rent a four dour sedan from M2000 and the excess is $440 ($1000 for single car accident -such as hitting a kangaroo or a tree).
It's been my experience that US issued Mastercard will NOT cover rentals in OZ and NZ, because they require that you decline ALL offered insurance. Some insurance is included with rentals in OZ and NZ so it's impossible to decline it all.
However, a helpful Fodorite recently pointed out that US issued Visa WILL cover the excess on rentals in OZ and NZ. I've verified this with my Visa and they DO.
Mar 1st, 2007, 08:01 PM
#4
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Agree with Melnq8 & Bokhara. For most credit card coverage you have to waive the LDW. As insurance is compulsory in AUS, NZ (and Ireland), you do not waive the LDW. Hence, your cc coverage does not apply. The $2500-$3000 is a fee applied by the rental company in the case of damage to the car. As it's a fee, the rental companies will charge this regardless of the amount of damage. However, you can often get a portion back if you ask for it after the damage is repaired, but not always. Some travel insurance policies will also cover this excess, for a lesser rate than the rental company's excess, but tread carefully and precisely.
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