Need to know
- There are big variations in car insurance cover for car rental
- While most comprehensive car insurance policies include some cover for a rental car after theft, some only offer a rental car after an accident for an additional fee
- CHOICE experts have compared 41 car insurance policies to help you find one that works for you
According to Budget Direct, a car is stolen every 13 minutes in Australia and nearly two in three Australian drivers have been involved in at least one car accident.*
If your car is stolen or needs to be put in for repairs, your insurer can help you pay for a rental car.
All comprehensive car insurance policies have some level of rental car cover. Sometimes it's included in the policy and sometimes you can buy it as an optional add-on.
While some insurers include cover for a rental car until your claim is settled, others restrict it to a number of days, usually between 14 and 30 days, and often a capped amount per day between $50 and $100.
There are large differences between what cover is provided depending on whether:
- your car gets stolen
- you have an accident and are not at fault
- you have an accident and are at fault.
Is rental car cover worth it?
When deciding which type of car insurance rental car cover will suit you, think about how long you could live without your car.
Do you need your car to get to work? Do you need your car for school/childcare drop-off or kids' activities? Can you access a car through a car share network?
How long will it take to get your car back from the repair shop?
Repair times vary depending on the damage. They can take anywhere from a few days up to two weeks or more.
Consider the type of car you have and how old it is. With older cars and imports it can be more difficult to get parts, and this could lead to a delay in the repairs, especially if parts need to be ordered from overseas.
What happens if your car is stolen?
In Australia, most stolen cars are recovered, but only just over two-thirds of stolen cars are found within seven days.
This means your insurer may want to wait a couple of weeks before processing the claim to see if your car is found. And if your stolen car needs repairs, that can lead to further delays.
Rental car cover if your car is stolen
While nearly all comprehensive car insurance policies include a free rental car after theft, there can be large variations in the cover provided. The best policies pay for a rental car that is similar to your car until your claim is settled, while the lowest cover policies only cover you for 14 days, and up to $50 per day.
Rental car cover if you have an accident
The level of rental car cover while your car is being repaired after an accident depends on whether or not you were at fault.
If you're not at fault, about half of the policies include some cover and the other half charge an extra fee for optional cover. The best policies include cover for car rental of a car similar to your own until your claim is settled, while the lowest cover policies charge you an extra fee to cover you for 14 days at $65 per day.
If you are at fault, most policies only provide cover for an extra fee. The best policies include cover for up to $100 per day until your claim is settled, while the lowest cover policy does not even provide cover for an extra fee. The second-worst policy provides cover for $60 per day for 14 days.
Is the rental car covered for an accident?
Check your car insurance policy for cover for your rental car in case of an accident or theft to avoid additional costs.
- Some insurance policies give you exactly the same comprehensive cover for your rental car as you have with your regular car.
- Others cover the hire car excess or security bond up to a certain amount – usually between $2000 and $4000.
Some car insurers provide no cover for the hire car.
How does your car insurer compare?
| Brand & policy | Car rental cover |
|---|---|
|
AAMI Comprehensive |
Theft: Cap on number of days or $ amount or both. Not at fault: Covered until claim is settled. At fault: Optional cover for an additional fee. |
|
Allianz Comprehensive |
Theft: Cap on number of days or $ amount or both. Not at fault: Cap on number of days or $ amount (or both). At fault: Optional cover for an additional fee. |
|
ANZ Comprehensive |
Theft: Cap on number of days or $ or both. Not at fault: Cap on number of days or $ or both. At fault: Optional cover for an additional fee. |
|
Bank of Melbourne Comprehensive |
Theft: Cap on number of days or $ amount or both. Not at fault: Optional cover for an additional fee. At fault: Optional cover for an additional fee. |
|
BankSA Comprehensive |
Theft: Cap on number of days or $ amount or both. Not at fault: Optional cover for an additional fee. At fault: Optional cover for an additional fee. |
|
Bankwest Comprehensive |
Theft: Cap on number of days or $ amount or both. Not at fault: Optional cover for an additional fee. At fault: Optional cover for an additional fee. |
|
Bingle Comprehensive |
Theft: Optional cover for an additional fee. Not at fault: Optional cover for an additional fee. At fault: Optional cover for an additional fee. |
|
Budget Direct Comprehensive |
Theft: Cap on number of days or $ amount or both. Not at fault: Covered until claim is settled. At fault: Optional cover for an additional fee. |
|
Budget Direct Comprehensive Low KM |
Theft: Cap on number of days or $ amount or both. Not at fault: Covered until claim is settled. At fault: Optional cover for an additional fee. |
|
Budget Direct Gold |
Theft: Cap on number of days or $ amount or both. Not at fault: Covered until claim is settled. At fault: Optional cover for an additional fee. |
|
Budget Direct Gold Low KM |
Theft: Cap on number of days or $ amount or both. Not at fault: Covered until claim is settled. At fault: Optional cover for an additional fee. |
|
Catch Gold Car Insurance |
Theft: Cap on number of days or $ amount or both. Not at fault: Covered until claim is settled. At fault: Optional cover for an additional fee. |
|
CGU Comprehensive |
Theft: Cap on number of days or $ amount or both. Not at fault: Optional cover for an additional fee. At fault: Optional cover for an additional fee. |
|
Coles Comprehensive |
Theft: Cap on number of days or $ amount or both. Not at fault: Optional cover for an additional fee. At fault: Optional cover for an additional fee. |
|
Comminsure Comprehensive |
Theft: Cap on number of days or $ amount or both. Not at fault: Optional cover for an additional fee. At fault: Optional cover for an additional fee. |
|
GIO Comprehensive |
Theft: Cap on number of days or $ amount or both. Not at fault: Covered until claim is settled. At fault: Optional cover for an additional fee. |
|
GIO Comprehensive Platinum |
Theft: Covered until claim is settled. Not at fault: Covered until claim is settled. At fault: Covered until claim is settled. |
|
Huddle Comprehensive |
Theft: Cap on number of days or $ amount or both. Not at fault: Optional cover for an additional fee. At fault: Optional cover for an additional fee. |
|
ING Car Insurance |
Theft: Cap on number of days or $ amount or both. Not at fault: Covered until claim is settled. At fault: Optional cover for an additional fee. |
|
Kogan Comprehensive |
Theft: Cap on number of days or $ amount or both. Not at fault: Covered until claim is settled. At fault: Optional cover for an additional fee. |
|
NAB Motor Insurance |
Theft: Cap on number of days or $ amount or both. Not at fault: Optional cover for an additional fee. At fault: Optional cover for an additional fee. |
|
NRMA Comprehensive |
Theft: Cap on number of days or $ amount or both. Not at fault: Covered until claim is settled. At fault: Optional cover for an additional fee. |
|
QBE Comprehensive |
Theft: Cap on number of days or $ amount or both. Not at fault: Covered until claim is settled. At fault: Optional cover for an additional fee. |
|
RAA Comprehensive |
Theft: Cap on number of days or $ amount or both. Not at fault: Optional cover for an additional fee. At fault: Optional cover for an additional fee. |
|
RAC Comprehensive |
Theft: Covered until claim is settled. Not at fault: Optional cover for an additional fee. At fault: Optional cover for an additional fee. |
|
RACQ Comprehensive |
Theft: Cap on number of days or $ amount or both. Not at fault: Covered until claim is settled. At fault: Optional cover for an additional fee. |
|
RACT Comprehensive |
Theft: Cap on number of days or $ amount or both. Not at fault: Optional cover for an additional fee. At fault: Optional cover for an additional fee. |
|
RACV Comprehensive |
Theft: Cap on number of days or $ amount or both. Not at fault: Covered until claim is settled. At fault: Optional cover for an additional fee. |
|
Real Comprehensive |
Theft: Cap on number of days or $ amount or both. Not at fault: Optional cover for an additional fee. At fault: Optional cover for an additional fee. |
|
SGIC Comprehensive |
Theft: Cap on number of days or $ amount or both. Not at fault: Optional cover for an additional fee. At fault: Optional cover for an additional fee. |
|
SGIO Comprehensive Extra |
Theft: Cap on number of days or $ amount (or both). Not at fault: Optional cover for an additional fee. At fault: Optional cover for an additional fee. |
|
StGeorge Comprehensive |
Theft: Cap on number of days or $ amount or both. Not at fault: Optional cover for an additional fee. At fault: Optional cover for an additional fee. |
|
Suncorp Comprehensive |
Theft: Cap on number of days or $ amount or both. Not at fault: Covered until claim is settled. At fault: No cover. |
|
Suncorp Comprehensive Advantages |
Theft: Covered until claim is settled. Not at fault: Covered until claim is settled. At fault: Covered until claim is settled. |
|
Suncorp Comprehensive Extras |
Theft: Cap on number of days or $ amount or both. Not at fault: Covered until claim is settled. At fault: Optional cover for an additional fee. |
|
TIO Motor Insurance |
Theft: Cap on number of days or $ amount or both. Not at fault: Optional cover for an additional fee. At fault: Optional cover for an additional fee. |
|
Virgin Money Price Promise |
Theft: Cap on number of days or $ amount or both. Not at fault: Covered until claim is settled. At fault: Optional cover for an additional fee. |
|
Virgin Money Price Saver |
Theft: Cap on number of days or $ amount or both. Not at fault: Covered until claim is settled. At fault: Optional cover for an additional fee. |
|
Westpac Comprehensive |
Theft: Cap on number of days or $ amount or both. Not at fault: Optional cover for an additional fee. At fault: Optional cover for an additional fee. |
|
Woolworths Comprehensive |
Theft: Cap on number of days or $ amount or both. Not at fault: Optional cover for an additional fee. At fault: Optional cover for an additional fee. |
|
Youi Comprehensive |
Theft: Cap on number of days or $ amount or both. Not at fault: Covered until claim is settled. At fault: Optional cover for an additional fee. |
Theft: Cap on number of days or $ amount or both.
Not at fault: Covered until claim is settled.
At fault: Optional cover for an additional fee.
Theft: Cap on number of days or $ amount or both.
Not at fault: Covered until claim is settled.
At fault: Optional cover for an additional fee.
Best and worst car insurance policies
Low cover
Policies with low cover include:
- Woolworths Comprehensive car insurance
- Real Comprehensive car insurance.
Cover: 14 days at $50 per day in case of theft, optional cover in case of at-fault and not at fault accidents, no cover for the rental car.
High cover
Policies with high cover include:
- GIO Comprehensive Platinum car insurance
- Suncorp Comprehensive Advantage car insurance.
Cover: Until the claim is settled, $100 per day in case of theft, at-fault or not at fault accidents, comprehensive cover for the rental car (only if the insurer arranges it).
How much does it cost to pay for extra cover?
If you choose optional cover for a rental car, you'll pay an additional premium.
This can be a:
- flat amount, which usually ranges from $50–179 per year
- percentage surcharge on your premium, which usually ranges from 3–28%.
How much you pay depends on your insurer and the state you live in. For example, in New South Wales, NRMA and ANZ both offer optional cover for a rental car in case of an at-fault accident and charge a flat amount.
For 14 days of cover at up to $75 per day, NRMA charges $64, while ANZ charges $171.
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