kyle said:
Thanks JohnK. I've looked at that thread, but it's more focussed on paying the excess.
No, you will find that I asked a few questions about what is covered. Are you travelling overseas or domestic? If you are travelling in the US I have no idea but this was also covered by other users. I am only interested in the domestic side of it.
My dilemma was does this comprehensive travel insurance policy cover rental vehicle insurance excess if you don't take out the excess reduction offered by rental company? I haven't been able to find anywhere a clause to the contrary. Am I interpreting it in the right way?
The quote is only $25.00 for 5 days within Australia (Plan B).
Online Travel Insurance Australia said:
16. Rental Vehicle
Cover for car excess payable on Motor Vehicle Insurance resulting from your rental vehicle being:
• Stolen
• Crashed
• Damaged and/or cost of returning rental vehicle due to you being unfit
Plan A and B: Single/Duo - $3,000 per person
Plan A and B: Family - $3,000
I found it in the
Travel Insurance Benefits section of their website.
When you hire a car that car has rental vehicle insurance but the excess is very high e.g $2,750 or $3,000. You have the option to reduce this excess down to around $450 by paying between $20-$35 per day to car rental company.
So if you don't violate your rental agreement (under the influence, negligent driving etc) and you have an accident the rental vehicle insurance covers the damage but you pay the excess, whatever that is. So theoretically damage can be $10,000 you only pay the excess, same as your own comprehensive motor vehicle insurance.
Now I can choose to waive the high cost charged by car rental companies to reduce excess and take out additional insurance to cover the rental insurance excess. Some policies are for $3,000 others for $4,000 etc. With online travel insurance it is $3,000 and you can also purchase an additional $2,000 in lots of of $500 at $25 for each $500.
Now by paying this premium to cover the excess I am covered for the conditions mentioned previously, ie. if rental car is stolen, crashed, damaged or I can't drive because I am sick. Assume rental car is stolen, so car rental company asks me for $2,750 excess (I did not pay daily excess reduction) and I pay them and then I put in a claim to the travel insurance to cover the excess money I just paid the car rental company.
The person I spoke to on the phone explained all in detail and told me that I do not need to take out the daily excess waiver offered by car rental companies in order to by covered by this policy for excess. In fact this is the whole idea of this policy. You need to be aware that you will not be covered if you are negligent or under the influence of drugs and alcohol.
For me I only travel 2-3 per year at most in Australia where I would hire a car and the $25 travel insurance per trip is sufficient to cover these things. I have never needed to hire a car overseas and to be honest do not have the desire to do so anytime soon.