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Does car insurance cover rental cars?

By April 26, 2022November 20th, 2023No Comments

Some individuals believe that their standard car insurance policy protects them when they hire another car. But in reality, your normal car insurance policy is most likely only valid for your own vehicle. As a result of rising claims, many insurers have reduced the amount of coverage they provide, and being covered to drive other vehicles is increasingly becoming the exception, rather than the norm. Learn all you need to know to keep yourself safe when you drive a different vehicle.

Will my normal car insurance policy cover a rental vehicle?

No, this is very unlikely, but there’s no need to panic. When you rent a car in Australia, Collision Damage Waiver (CDW) and Theft Protection (TP) insurance are mandatory requirements, so you’re still protected.

However, it’s worth noting that you will have to pay the excess in the event that the rental vehicle is stolen or damaged. As such, it’s usually best to take out a rented car excess insurance policy for the duration of your hire period. This means you can file a claim if the rental vehicle is lost or damaged while in your possession and the insurer will reimburse you for the calculated damage costs.

Some things to bear in mind when hiring a rental car

When renting a car, there are a few things you need to do:

Check the company you’re hiring from is licensed: Most car excess insurance providers in Australia will only cover damage if you rented the vehicle from a licensed rental company, so it’s important to make sure the company you’re hiring from is regulated to operate in your state.

Make sure only named drivers drive the rented car: When taking out the policy, make sure you name everyone who is going to drive the vehicle. Any damage caused by someone who is not a named driver will not be reimbursed.

Contact Not My Fault today

If you’ve been involved in a car accident that wasn’t your fault, please don’t hesitate to call our skilled and friendly staff at Not My Fault to organise a replacement vehicle for you.