Credit cards with complimentary domestic car rental excess insurance

ALASDAIR DUNCAN
Content Editor · 12 June 2024

If your next Australian holiday includes plans to hire a car, you may consider buying rental car excess insurance from a car hire company. But some travellers may already be covered by their credit card provider. We take a look at which credit cards have complimentary domestic car rental excess insurance as a special feature.

After a few years of border closures and snap lockdowns, it’s understandable that you may be itching to get out and explore this country’s wide-open spaces. Those looking to explore via a hire car have the choice of buying car rental excess insurance from a hire company. But before you do, check your credit card if you have one. You could already be covered.

Here’s a quick summary of what rental car excess insurance is, a snapshot of some of the credit cards that offer it as part of travel insurance policies and some tips on how you can get it if you don’t currently have it.

What is car rental excess insurance?

Car rental excess insurance is designed to cover you for the excess you’d otherwise be required to pay in the event that your hire car is damaged or stolen. When you hire a car, some insurance cover is usually included in the fee. However, there would typically be a car insurance excess, which is the amount you pay out of pocket if you make an eligible claim under the hire company’s standard liability cover.

There may be the option for you to pay more on car insurance to the car hire company directly to lower the excess, even to $0. This is known as rental excess insurance. Keep in mind that these types of insurance policies only cover you for the excess amount you are liable for and are subject to a range of exclusions.

Another option is car hire excess insurance offered through your credit card. If you are involved in an accident in a hire car, typically the excess will be charged to your credit card by the hire car company. If you have rental car excess insurance as a complimentary feature of your credit card, this charge would typically be reimbursed for an eligible claim.

Excesses on rental car damage can be quite expensive, and up to thousands of dollars in some cases, so it’s worth carefully considering any insurance policy that you take out, either directly or indirectly, if you are hiring a vehicle, and reading the fine print.

Which credit cards include complimentary domestic rental car excess cover?

Canstar Research reviewed credit cards listed on our database, and found that there are a number of companies that do offer complimentary domestic rental car excess cover.

These products are outlined in the table below, sorted alphabetically by provider name. Keep in mind that there are eligibility criteria that have to be met for this cover to kick in, which could include things such as charging all or part of travel costs to the card.

Before committing to any particular credit card, check upfront with your provider and read the Target Market Determination (TMD), Key Facts Sheet and other important policy documents so you understand details about any relevant car excess cover.

Credit cards with complimentary domestic rental car excess cover

← Scroll to view →

Company Card Rate Maximum coverage
ANZ Frequent Flyer
Black
20.24% $5,000
ANZ Frequent Flyer
Platinum
20.24%
ANZ Platinum 20.24%
ANZ Rewards Black 20.24%
ANZ Rewards Platinum 20.24%
ANZ Rewards Travel
Adventures Card
20.24%
Auswide Bank Platinum Rewards
Mastercard
20.24% $2,250
Bank of Melbourne Amplify Signature 19.49% $5,500
BankSA Amplify Signature 19.49% $5,500
Bendigo Bank Platinum Rewards
Credit Card
19.99% $5,000
Bendigo Bank Qantas Platinum
Credit Card
19.99%
BOQ Platinum Rewards
Credit Card
20.74% $2,250
Citi Clear Credit Card 14.99% $2,250
Citi Emirates World
Mastercard
21.49%
Citi Prestige Card 21.49%
Citi Rewards
Credit Card
21.49%
Citi Simplicity Card 21.49%
Heritage Bank Platinum 16.99% $2,250
HSBC Low Rate
Credit Card
12.99% $6,000
HSBC Platinum
Credit Card
19.99%
HSBC Platinum Qantas
Credit Card
19.99%
HSBC Premier World
Mastercard
19.99%
NAB Low Fee Platinum
Card
19.74% $5,000
NAB Qantas Rewards
Premium Card
19.99%
NAB Qantas Rewards
Signature Card
19.99%
NAB Rewards Platinum
Card
19.99%
NAB Rewards Signature
Card
19.99%
St.George Bank Amplify Signature 19.49% $5,500
Suncorp Bank Clear Options
Platinum Card
20.74% $2,250
Westpac Altitude Black 19.99% $5,500
Westpac Altitude Velocity
Platinum
19.99%
Westpac Altitude Velocity
Black
19.99%

Source: www.canstar.com.au – 08/02/2022. Cards displayed offer complimentary rental car excess insurance for domestic travel, in alphabetical order by provider, then ascending order by purchase rate. To be eligible for insurance, you must take out hire car insurance when renting the vehicle from a registered hire car provider. Please see the individual card product documents for full terms and conditions of complimentary insurance policies.

Do you need rental car excess insurance?

Whether or not you need rental car excess insurance comes down to your personal circumstances. However, rental car insurance excesses can be an unexpected expense that could have a major impact on the cost of your trip.

How much excess you would have to pay in the event of an accident should be detailed in the Product Disclosure Statement (PDS) and terms and conditions provided by the hire car company. It’s a good idea to understand what costs you might be up for if you have an accident before deciding on a hire car company.

It is difficult to provide a general estimate of how much rental car excess insurance would cost the average hire car driver, as there are so many variables involved, such as the company issuing it, the person taking it out, and the location and risks associated with how the rental car is going to be used. So it’s difficult to compare policies unless you obtain a few quotes yourself. However, the price of rental car excess insurance is typically much less than the insurance excess would cost if you were to have an accident. And for some credit card holders, this type of insurance could also be complimentary (providing the card’s terms and conditions for the insurance are met).

So, if you’re interested in this type of insurance for a hire car in Australia, before you buy an insurance policy from a rental car agent, it could be a good idea to check with your credit card provider to see if you’re already covered.

If you’re in the market for a new credit card that offers hire car excess insurance, or if you just want to get a new insurance policy for your own car in Australia, you can compare your options with Canstar.



Alasdair Duncan is Canstar's Content Editor, specialising in home loans, property and lifestyle topics. He has written more than 500 articles for Canstar and his work is widely referenced by other publishers and media outlets, including Yahoo FinanceThe New DailyThe Motley Fool and Sky News. He has featured as a guest author for property website homely.com.au.

In his more than 15 years working in the media, Alasdair has written for a broad range of publications. Before joining Canstar, he was a News Editor at Pedestrian.TV, part of Australia’s leading youth media group. His work has also appeared on ABC News, Junkee, Rolling Stone, Kotaku, the Sydney Star Observer and The Brag. He has a Bachelor of Laws (Honours) and a Bachelor of Arts with a major in Journalism from the University of Queensland.

When he is not writing about finance for Canstar, Alasdair can probably be found at the beach with his two dogs or listening to podcasts about pop music. You can follow Alasdair on LinkedIn.


Share this article