Car Hire Insurance On Your Credit Card

Many of us don’t realize our existing credit cards may already provide us with all the cover we need without having to take out extra excess insurance cover from the car hire companies. You can save precious dollars by checking if this is true for you.

If you are an ANZ or Westpac Gold/Platinum credit cardholder, you may just have it made! Both these credit cards offer car hire cover. (Thanks to Adam M. for the tip!).

ANZ offers Australian car rental excess cover of up to $2,400 less the policy excess of $350. This means for damage excesses under $2,400, you’ll only be liable for the first $350. Beyond $2,400, you will pay $350 plus the amount exceeded.

This Car Rental Cover is available on all its credit cards for a cost $24 per year. Some gold cards get the cover free. This currently excludes ANZ Frequent Flyer Visa Gold and ANZ Rewards Visa Gold.

In effect, it works as if you had taken out the typical excess reduction option offered by the car rental companies. The clause to be aware of is that this cover only applies to excesses i.e. it does not apply to situations where the amount you are liable to pay is more than the standard excess e.g. in single vehicle accidents, water damage which are typically not covered by standard waivers.

More details on ANZ car rental cover
Policy document for ANZ Car Rental Cover

Westpac Platinum cardholders are entitled to be reimbursed up to $5,500 of any amount (not just the excess) they are liable to pay with regards to the loss or damage the rental vehicle. There is a nil excess in Australia and a $200 excess overseas as covered by the Overseas Travel Insurance benefit. Your return overseas travel ticket must have been purchased in full on the card for the travel insurance cover to be applicable.

Westpac Gold cardholders are also covered by Overseas Travel Insurance for up to $5,000 with a $200 excess for car hire abroad. Your return overseas travel ticket must have been purchased on the card for the travel insurance cover to be applicable.

Applies to Altitude, Earth, Singapore Airlines Kris Flyer and 55 day credit cards.

Policy document for Platinum Credit Cards Insurance Policy
Policy document for Gold Credit Cards Insurance

If you’re a visitor to Australia, check with your credit card company to see if your card includes travel insurance benefits that encompass car hire coverage. This is very common amongst Gold and Platinum cards as part of their International Travel Insurance benefit. The “Rental Vehicle Excess Cover” clause can commonly offer from $2,000 to over $5,000 worth of coverage. Always, always read the fine print and call your bank to clarify any ambiguities.

1. Under what situations the policy applies:

• Do you have to charge the car hire or other travel expenses to your credit card?
• Does it apply if you just rent the car with the standard waiver amount or are you expected to take up the additional excess reduction / insurance options offered by the car hire company?

2. If you’re renting anything other than a normal hatchback or sedan, you’ll want to check that the coverage applies to your type of rental vehicle.

3. What precisely do they cover? E.g. theft, or just damages?

4. Do they cover just the excess amount you are liable for? Or any deductible amount charged by the car rental company as a result of loss/damages to your vehicle?