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Car Rental Insurance USA: Guide to CDW & SLI

Car Hire Insider — Tue, 05 Jul 2011 17:15:28 +0000

UPDATE (December 2011): Great news! The much cheaper CDW/SLI insurance policies through iCarHireInsurance have become available again to residents of Australia and NZ, in addition to UK/EU residents.

UPDATE (November 2011): Please note that it has been brought to our attention (cheers Gary M.) that both our previously recommended CDW/SLI insurance cheaper alternatives – iCarHireInsurance and Insurance4CarHire – have just recently become unavailable to non-UK/EU residents. This is a VERY unfortunate turn of events for renters who already had such limited options and is due to their insurers imposing more restrictive acceptance criteria. That leaves everyone else completely out of luck. We are all losing out big time and will have to work to find suitable alternatives if they exist. You’ll be the first to know.

Car hires in the USA and their insurance options are a whole other can of worms. It’s a little off our main agenda of Australian car hire but after receiving many queries from readers, we realised dedicating a page to this topic is in order.

Types of Car Hire Insurance

First and foremost, in the USA, there are two primary forms of insurance to consider for your rental:

1. Rental Car Cover: Collision / Loss Damage Waiver (CDW / LDW)
This is the insurance that limits your financial responsibility for loss or damages to your hire car.

2. Third Party Cover: Supplementary Liability Insurance (SLI / LIS)
This covers your third party liability i.e. claims against you by an injured person or for property damages caused by an accident involving your hire car.

How It Works In The US

Here’s where it gets “interesting”. Laws vary from state to state (and rules vary from company to company) meaning it’s hard to say exactly what may or may not already be covered. Unlike other countries, it is not uncommon for USA rentals to come totally unprotected since Americans tend to already have their own cover from personal insurance policies or credit cards. You often have a choice of having inclusive hire with CDW and/or SLI (but this will be significantly more expensive), or an exclusive hire.

Protection for your rental car
Choosing exclusive hire will often mean your basic rental comes with NO level of CDW/LDW car insurance i.e. you’re liable up to the full, current value of the car plus any losses the hire company bears as a result of its loss of use. No good. That means even if you have excess cover from existing travel insurance or similar, if your rental has no insurance at all to begin with, then there is no excess in the first place so your excess insurance won’t apply. That means if your chosen rental company doesn’t automatically include any CDW, you’ll have to pay for it (typically $10-20/day) which ironically may make your excess cover redundant anyway.

Protection for third party liability
In terms of third party liability (with the exception of California and maybe a couple others), state law requires car hire companies to include at least a minimum level of coverage, the exact amount of which varies from state to state. If you’re unsure, call the company and ask them if this cover comes standard with all rentals and see if you’re comfortable with the level of cover. Remember, California rentals typically come with NO cover at all so if you’re heading there, be aware! You’ll have to add this on before you can rent the car (typically $10-15/day). Excess insurance can’t be used as a substitute for this.

Typical Insurance Prices from Car Hire Companies

As a guide to the daily charges, have a look the table below (do bear in mind prices may have shifted). It’s a wide range of prices but we reckon you should expect to pay between US$20-30/day:

Company	Collision Damage Waiver	Supplemental Liability Insurance
Alamo	$10.50 – $22.99	$11.95 – $12.95
Avis	$9.00 – $35.99	$10.95 – $12.95
Budget	$9.00 – $35.99	$10.95 – $12.95
Dollar	$8.95 – $34.99	$8.95 – $12.99
Enterprise	$10.00 – $15.00	$10.00 – $16.00
Hertz	$9.00 – $35.99	$10.95 – $12.95
National	$10.50 – $22.99	$11.95 – $12.95
Thrifty	$8.95 – $34.99	$8.95 – $12.99
Prices are in USD and are indicative only

Cheaper Alternatives

Rather than purchase the insurance directly from the car hire company, there is one alternative to consider and compare – specialized car hire insurance policies designed for US rentals. There is currently one company that provides both CDW and SLI at relatively affordable prices and will cover Australians for US hires.

iCarHireInsurance offers a daily ‘USA and Canada’ policy at £6.99/day (A$10.80), or an annual policy for £120 (A$185). It includes unlimited use for 1 year provided each hire is not longer than 60 days. You’ll be indemnified for up to approx. US$100,000 for damages/theft/loss of use of your rental car, and up to approx. US$1,000,000 for third party injury/damages as well as any excess you are liable for.

You have a couple more options if you live in the UK or EU. Insurance4CarHire offers an annual policy for £119 (A$185). This also includes unlimited use for 1 year but each hire must not be longer than 31 days. Alternatively, Worldwide Insure also offers an annual USA/Canada cover for £116 (A$175) but their daily policy is more costly at £12/day (A$18). Each have different types of extras so make a comparison to see which set of benefits suits you better.

If you already live in the USA, these policies won’t work for you. Instead, check your personal insurance policies and with your credit card company to see if its already included. We’ve heard of people forking out precious sums of money before realizing they were already insured.

In any case, read the policy document carefully to make sure it’s right for your situation and if you get it, do not let car hire company employees scare you into buying extra cover from them! Turn down all their insurance. If it’s already included in your quote, check if you can get a cheaper price by removing it. Finally, print out your policy too as proof of your coverage to make sure they allow you to rent the car.

Private Car Rentals: Drive Your Neighbour’s Porsche

Car Hire Insider — Fri, 04 Mar 2011 22:02:19 +0000

Fancy an alternative way to renting that will give you access to a whole new world of choice? Hiring a car can be pretty ho-hum with the standard fare, but for Australian residents, we’re excited to share that there’s a new kid in town to spruce up the experience.

Introducing the Private Car Rentals Concept

DriveMyCar Rentals (DMCR) puts a unique spin on car hire by hooking up renters with car owners. This peer-to-peer car sharing platform attracts owners by allowing them to generate income from their cars which in turn furnishes renters with the largest, most varied selection of cars to choose from.

Whether you want to save money with an old 1990 sedan or indulge yourself with a Maserati coupe, chances are you’ll find something that suits you. It’s also an excellent place for those seeking long-term car rentals at competitive prices.

The Process

All one needs to do is register yourself as a Driver for free. You’ll be able to search by make, style, rate and suburb. The results include pictures of the cars as well as the corresponding year of production. Select your car of interest and you’ll receive a brief overview of information like the all-inclusive daily rate, minimum rental duration, minimum driver age, insurance excess and the number of kilometres on the odometer.

Pick your rental dates to get an immediate quote and if you’re happy, submit a booking. You’ll need to do this at least 48 hours in advance of your pickup time and once the owner accepts your booking, you’ll have to pay a 16.5% administrative deposit to secure it (any cancellation prior to commencement and you’ll lose your deposit so don’t book until you’re certain!) You’ll then agree with the car owner where and when you’ll meet for the handover and to sign the agreement.

The Nitty Gritty

How reliable are the cars? Well, DriveMyCar Rentals ensures all cars are of roadworthy condition, complete with current registration and requires all owners to sign a declaration that their cars are in good working condition. Roadside Assistance for $1/day is incorporated in the daily rate though you can opt out of it.

All cars are also insured at a compulsory cost of $10/day which is also included in the daily rate. The amount of insurance excess on the car varies (starting at $1,250 up to $7,500 or even $15,000 for serious supercars) and you’re given an option to reduce the excess by 50% for a daily fee (from $5/day to $15-25/day).

Driver Rating

When you first register as a driver, you start out at the Bronze Driver level. If you (and you should) upload your driving history information, making you more legit and trustworthy, you’ll be upgraded to Silver Driver which in turn gives you access to a larger variety of cars, particularly premium cars. Once you’ve rented at least 2 cars over DMCR and received positive feedback from the car owners, you’ll be awarded Gold Driver rating and have full access to all vehicles on the site.

The Wrap

All in all, DMCR is a highly promising site that’s looking expand their presence internationally this year. A few checks reveals they indeed have very competitive rates relatively to the Big Boys of Avis, Budget, Europcar, Hertz and Thrifty. There’s still room for operational improvement like making the search function more user-friendly but they’ve certainly set themselves apart.

One of their key selling points is the fact that there’s so much choice for the renter. If you live in Australia, there’s no reason not to give the site a check the next time you want to rent and are looking for something a little different.

Link:
DriveMyCar Rentals

East Coast Car Rentals serves up Sydney Airport

Car Hire Insurance: Smarter Alternatives

Car Hire Insider — Fri, 03 Sep 2010 14:12:18 +0000

UPDATE (November 2011): Please note that it has been brought to our attention one of our previously recommended providers Insurance4CarHire has stopped offering their policies to non-EEA (European Economic Area) residents. Thankfully, Worldwide Insure policies are still available. iCarHireInsurance has also limited their offerings, with their worldwide policy now only available to residents of UK, EU, Australia, USA and Canada. For more details, see the section below on car hire insurance providers.

Car hire excess insurance is an expensive business but we’ll tell you how to save big time. In fact, getting the right car rental protection could cut your costs by $100s.

We’ve revamped this page by popular demand to provide all the information you need to ensure you are well covered and also added a few recommendations for campervan hire insurance. Before you proceed, you may want to make sure you understand all the car hire insurance jargon and terminologies.

What you need to be aware of
High price of getting extra protection the conventional way (from car rental companies)
You have choices! Save big time with alternative car hire excess insurance providers

With an inclusive Travel Insurance policy
With a specialized Car Hire Excess Insurance policy

Campervan / Motorhome Excess Insurance

REMINDER: Always, always take the time to read through your policy’s Product Disclosure Statement, paying attention to exactly what is and isn’t included, under what circumstances any cover will and will not apply and the maximum combined payout per section/category as well as any limits per claim. Finally, acquaint yourself with the procedure and any reports required should you need to make a claim.

What you need to be aware ofTop ↑

Standard excess inclusion
All car hire throughout Australia comes with a basic level of insurance commonly known as Standard Liability or Collision Damage Waiver (CDW). That often still leaves you liable for up to about A$3,000 for any damages to the rental car (this excess amount varies with different companies so do always check)

Are you under 25
If you are between 21-24 years, standard liability excess levels tends to be higher (e.g. a standard liability excess of A$2,500 renters 25+ years could be A$3,000 for 21-24 years)

Standard exclusions
Single Vehicle Accidents (SVA) and Windscreen, Headlights and Tyres (WHT) cover are often excluded and has to be added on. In addition, insurance does not cover damages to the overhead, underbody, interior or roof of the car – for all these you’ll just have to keep your fingers crossed.

The high price of getting extra protection the conventional wayTop ↑

First, some indicative prices of taking out first-level/cheapest Excess Reduction i.e. reducing from A$3,000 to A$330 (not 0), and without WHT or SVA :

Avis, Budget, Europcar, Hertz, Thrifty: A$24-27 per day

Smaller local independent companies: A$12-16 per day

The independents tend to have fewer options available like not offering SVA, WHT or Full Protection.

A quick calculation and you’ll find taking out Excess Reduction protection on a 7-day car hire can blow up your final cost by a staggering A$80-200! But don’t take it and you leave yourself open to even more charges if you damage the car.

So how now brown cow? Well that depends on you. Evaluate what level of insurance you feel comfortable with. Naturally that decision will very well be influenced by the price of taking out additional car hire insurance and here are some great alternative ways to save big while being covered:

You have choices! Save big time with alternative car hire excess insuranceTop ↑

For Australians travelling domestically, inclusive travel insurance is the way to go. If you’re an Australian going overseas or an international traveller coming to Australia, take out a specific car hire excess insurance policy.

With an inclusive Travel Insurance policyTop ↑

We’ve uncovered these travel insurance policies that include rental car excess coverage as one of its benefits. Our emphasis for selection is on the car rental excess cover and price but check how the other benefits suit you.

For Australians, the travel insurance providers we’ve recommended typically cover campervans, 4WDs and vans as well as standard rental cars. For the most part, no excess applies in the event of you make a claim on the car hire benefit. Their rates are usually staggered rather than continuous (e.g. price will stay at A$30 for 6-8 day policies), meaning different companies can offer value depending on your exact required duration so you’ll do well to compare a couple.

For Australians
Single trip Travel Insurance with Car Hire Excess Cover
Unless you are renting from Thrifty, Europcar or Hertz (all whom have current standard liabilities of A$3,300), a policy offering A$3,000 cover (most common) will suffice. But there are numerous levels of car hire excess coverage offered with travel insurance plans, ranging anywhere from A$1,000 up to A$6,000. A$3,000 Cover Columbus Direct has one of the lowest rates around estimated at A$31 for a one week policy and up to A$88 for a maximum of 60 consecutive days for Domestic cover. However Columbus only covers the excess in the event of accidental damages to the vehicle, not theft. For slightly more, Worldcare covers that at an estimated A$37 for a week up to A$173 for a maximum of 67 days. You should compare the two. For continuous rental over a month long, RACV is worth a check. A$4,000 / A$5,000 Cover As an indication, you can expect to pay about A$46-48 for a week, A$80-100 for a month. Budget Direct’s Platinum Plan (max. 62 days) and Travel Insurance Direct’s Plan D (available up to 6 months) both offer great rates with A$4,000 rental vehicle excess cover within Australia whether crashed, damaged or stolen. 1Cover insures up to A$5,000.
Annual/Multi trip Travel Insurance with Car Hire Excess Cover
The best value annual cover is from Cover More’s Travelsure option: A$105/year covers you for unlimited journeys per year with max. 30 days consecutive car hire each time. If you only need 15 consecutive days per hire, you can get it for a mere A$76/year. Great value! On top of that, their $4,000 rental vehicle benefit can be increased in A$500 increments by up to an extra A$3,500 for A$16-17 per increment . However, if their other benefits don’t suit you, Zuji Australia offers Domestic cover for A$233/year inclusive of $3,000 rental vehicle excess cover. Columbus Direct’s A$290 affords you Worldwide coverage (excluding USA, Canada, China, Hong Kong & Japan) or A$320 for complete global cover. These rates come with A$3,000 rental car cover. For about $40 more, you can get the Premier plan which includes A$4,000.

For International visitors to Australia
For overseas visitors, we have not unearthed many travel insurance policies that include rental car cover. 1Cover is one that offers a A$2,500 excess cover. We recommend you continue reading below for taking out specific car hire excess insurance. If you know of good travel insurance deals, do share your find with us!

With a specialized Car Hire Excess Insurance policyTop ↑

There are a handful of third party insurance companies specializing in covering just your car rental excess for a lot less than the car rental companies’ offers. For hires under 20 days, taking a single trip daily rate policy will usually be the way to go. Any longer and you’ll want to look at getting an annual policy.

Features of the Typical Policy
These policies commonly insure you for up to A$3,100 (£2,000) per claim and A$4,600 (£3,000) per rental agreement and have NIL Excess. They are available to anyone aged between 21-74 years (some allow older renters) and applies to standard non-luxury rental vehicles up to the size of vans that have 8 seats or less. They do not cover motorhomes or caravans. As a great bonus perk, the car hire insurance providers often cover damages to the undercarriage, windows and tyres which is almost always excluded in standard coverage. These are TYPICAL features but remember to always double check the exact terms and conditions.

The Procedure for Claims
Car hire excess insurance differs from the Excess Reduction options offered by car rental companies in that the former covers you, not the rental car. The procedure would be you rent a car with the Standard Liability i.e. NOT taking the Excess Reduction option, and then if you incur any damages, the rental company will still charge you up to the limit of the standard excess e.g. A$3,000. You will then claim reimbursement from the car hire excess insurance company. Be sure you acquaint yourself with all the documentation and procedures required for making a claim.

For Australians
Single trip car hire insurance
If you’re looking for short-trip coverage within Australia, you’ll probably find better value going for a domestic travel insurance policy that includes car rental excess cover since for almost the same price, you’ll get all the other extra travel protection. However, if for some reason they don’t suit your needs, Worldwide Insure and iCarHireInsurance are two well-known British-based providers that offer worldwide car hire insurance including cover for rentals in your home country. They make excellent choices if you’re looking to hire abroad too. WWI costs as low as A$4.50 (£2.90) per day for worldwide rentals. To have home country rentals included, WWI will come in at A$5.40 (£3.50) and iCarHireInsurance A$6.15 (£4) per day.
Annual/Multi trip car hire insurance
For about A$93 (£60) with iCarHireInsurance or A$100 (£65) with Worldwide Insure, you can get annual car hire insurance that allows you to be covered for unlimited rental instances over a 12-month period. This is a fantastic rate since A$100 can normally only buy you a maximum of 4-6 days of excess reduction from car rental companies. iCarHireInsurance allows you to hire continuously for up to 60 days per agreement while Worldwide Insure allows 31 days. Neither have any restrictions on how far away from your home your rental must take place (there are other providers who impose limitations). Note that for Worldwide Insure to cover rentals in Australia, you’ll need to select the package that “includes your Home Country”. Before deciding, read the travel insurance section. Note: As highlighted at the beginning of the article, due to a very recent change of policies, one of our previous suggestions Insurance4CarHire can no longer cover non-European residents. We know they are working to get on board a different insurer so they may provide policies to worldwide residents but at the moment these are not yet available.

For International visitors to Australia
Single trip car hire insurance
Worldwide Insure for international residents has great daily rates from A$4.50 (£2.90) per day. If you’re from UK or Ireland, Car Hire Excess is also another comparable value choice.
Annual/Multi trip car hire insurance
Worldwide Insure has one of the most competitive annual rates for non-Australians at A$85 (£55)/year. The policy allows up to 31 days of continuous rental per agreement for unlimited instances over the year. If you’re from the wider European region, USA or Canada, you’ve got more options! As highlighted at the start of the article, these providers used to cover all residents but have recently limited their offerings. A$93 (£60)/year with an annual policy from iCarHireInsurance will allow unlimited rental instances but with a longer 60 days continuous cover per rental agreement. Insurance4CarHire also has great prices particularly if you can take advantage of Family/Partner packages where you can get two policies for less.

Campervan / Motorhome Excess InsuranceTop ↑

Appropriate insurance for campervan hires in Australia typically are rather hard to come by but we’ve put together three possible options for you to look into.

For Australians

1Cover offers domestic travel insurance with Rental Vehicle Excess coverage of up to A$5,000 which is applicable on any “campervan/motorhome that does not exceed 4.5 tonne”. However, there are two possible issues with this option: Firstly, campervans often come with a higher standard liability than A$5,000. 1Cover’s policy does NOT cover damages to third party property – only for damages to the campervan itself.

TravelInsuranceDirect is similar to 1Cover in that it is a domestic travel insurance that comes with Rental Vehicle Excess cover that includes campervans for up to A$4,000. The difference is they have an option of increasing your Excess cover by up to an additional A$2,000 at a cost of A$25 per A$500 increase. So for an extra A$100, you can get A$6,000 worth of excess cover. Again, note that this policy does not include damages to third party property caused by your campervan.

For International visitors to Australia
Worldwide Insure has a worldwide Motorhome Hire Excess Insurance policy that will cover your rental for theft or damages at a rate of £8.80 (A$13.60/day) for UK/Ireland residents and £10.85/day (A$16.7/day) for everyone else. Their policy provides an adequate £5,000 (A$7,700) of cover. However, they do NOT cover rentals in one’s home country so if you’re permanently living in Australia, this option is out the window.

Top ↑

Car Hire Discounts from Partner Programs

Car Hire Insider — Wed, 04 Aug 2010 16:22:02 +0000

Do you find yourself thinking that you have too many cards in your wallet, too many different loyalty programs and too many point schemes to consider? If so you probably feel you waste hours trying to understand the offers, when you would rather be planning the more enjoyable parts of your holiday.

Car hire is one such area, so we’ve taken a closer look at types of loyalty program tie-ups and point schemes you can find at Australia’s five major car hire providers – Avis, Budget, Europcar, Hertz and Thrifty.

There are two very different aims when considering programs and points associated with car hire. First is getting the best deal possible and second is getting the most out of that deal.

Getting the best deal possible

There are typically four types of discounts offered by car hire companies. These include:

Coupon offers, which are the large majority of the offers and change frequently,
Standing percentage discounts based on your membership to a particular organisation,
Loyalty discounts which are provided only to the most loyal and high-use customers, and
Corporate discounts, provided to companies and businesses.

Start your research by checking the available car hire coupons, which we’ve scoured each of their websites to compile for you, and in discount books such as the NRMA guide or Entertainment Book.

With your vouchers and codes ready, contact the car hire company. Mention to them any airline, auto club, hotel program and credit card group that you are associated with. Even if you are unable to get a discount, you can record the details for future point collection where applicable. Some providers only accept these details at the time of reservation.

Discounts may also be available as a result of membership with some international airline frequent flyer programs. All discounts are subject to providing proof on check-in.

Discounts offered by selected Partner Programs
	Qantas FF	Virgin Blue FF	NRMA	Other Auto Clubs	Entertainment Book
Avis	5%	-	2%		5%
Budget*	0-10% discount depending on the rate available. Discounts are offered from Qantas, NRMA and Auto Clubs				Various offers
Europcar	-	5%	3% + excess and daily waiver fees are reduced		5-20%
Hertz	3%	-	4% + one day free on a seven day hire		3%
Thrifty	-	-	10%	5%	7%
Updated August 2010; FF = Frequent Flyer; NRMA = National Roads and Motorists’ Association * Budget also allows Flybuy points to be redeemed and Westpac Altitude vouchers used for car hire

Earning new points or miles

Each car hire provider is partnered with a large number of airlines and other companies allowing you to earn points or miles as you drive.

Australian Frequent Flyer Programs

Qantas offer three points per dollar spent on time or kilometre expenses (excluding GST, insurance and other such costs) with Avis, Budget, Hertz and Thrifty. This is extended with Avis and Hertz to provide 700 points for any international hire you make through these companies.

Virgin Blue is connected with Europcar and Thrifty only, offering a number of points between three and five per dollar spent based on your Virgin Blue Frequent Flyer membership level.

Australian Banking Options

Through Westpac Altitude and Qantas American Express, points may be earned by renting your hire car through Budget.

International Airline Partners

Every airline is associated with at least one of the major Australian car hire providers. However, there are so many airlines with differing reward points options that it is recommended that you contact your airline and ask who their car hire partners in Australia are and how it works.

If you have multiple frequent flyer rewards cards, you may need to compare the deal you receive. Make sure that you check whether the number of points is provided per dollar spent (as both the main Australian airlines do), per day (e.g. AAdvantage, United Airlines and Air New Zealand) or per rental, which is provided by most of the other airlines including the Australian airlines for international rentals.

Getting the best out of your booking

Check for discount car hire coupons.
Ask about discounts based on airline program, auto program, hotel program and credit card programs.
See if your international or local frequent flyer scheme is covered.
Compare each of your frequent flyer program offers to determine which is best, as you are only able to select one per booking.
If you are travelling on a corporate rate ask what points you are entitled to earn. Because the corporate rate is discounted, some hire companies do not provide any points or miles, while others provide a reduced number.

Frequent Renter Programs: Is There A Winner?

Car Hire Insider — Mon, 12 Jul 2010 18:35:51 +0000

Are you driving in circles with your frequent renter program options but failing to get anywhere?

Loyalty programs are offered by all of Australia’s five major car hire companies, but at a glance it can be hard to determine if any are superior. So we set our research team to work to find you the answer.

What are the programs?

Each car hire company has its own branded frequent driver offer – Avis Preferred, Budget Fastbreak, Europcar Ready Program, Hertz #1 Gold Club and Thrifty Blue Chip.

Unfortunately the name is probably the most individual thing about them. Each program will provide you with faster reservations, record your preferences and ensure that you have priority over other customers who are not part of their program. With each, you will receive a card and a membership number.

Effectively by retaining your details on file, it speeds up the transaction time of both parties, thereby reducing administration costs over the long term.

Do they give me a discount for being a member?

The short answer is no. The programs do not entitle you to a direct discount in their own right. The best deal you can expect, as a result of being a member of their program is that you will be offered in most cases the best rate of the day. Being a member of the NRMA, an auto club, or Frequent Flyer program however may entitle you to a 5-10% discount depending on the car hire company. However, Avis and Hertz do offer the occasional member-exclusive offers like free days that can be better than the discount coupons available to the general public (Thanks Adam M.)

Most hire companies have a second or third tier of membership to which you cannot join, but must earn. This is similar to a frequent flyer membership where you can only progress up to the next level by travelling a certain number of times and distances. If you travel very frequently you may find yourself admitted to this group and therefore may become eligible for a greater level of priority, more upgrades and discounts.

Are there any other benefits of membership?

There are a few additional benefits to some memberships, which separate the quality of the programs.

Priority number
Avis, Hertz and Thrifty offer their frequent or priority members a dedicated phone line. The others direct you through to their standard reservation line which in some instances, particularly Europcar, can leave you waiting 10-15 minutes to be answered.

Priority service
Priority service is offered by all the providers. However in the cases of Avis and Hertz, this means no stopping at the counter at all within the main Australian airports, allowing you to simply proceed to the car.

Other features
Hertz goes one step further than the other car hire companies, in that they have a ‘no additional driver charge’ feature which is applicable on all their cars and provides a discount to gold members on the rental of infant or child seats. In addition, they offer their own points reward program so you can still achieve points even if you are not part of one of their affiliated frequent flyer programs.

Joining the program

Each programs is free to join, except Hertz, which is only free to Australian residents. The forms simply need to be downloaded from the website, completed and returned.

Be aware when selecting any preferences on your application form that this information will be automatically used on all your future bookings with that company. Should you need to change a preference, you will need to contact the company to update your details.

A final word

Because all the providers are similar, the choice of your hire car company is likely to come down to individual cost and features at the time you wish to travel. The only time this would not be the case is when you travel very frequently, then aiming for one of the memberships such as Hertz which offers an upgrade after 10 hires in one year, may be worthwhile.

There is no reason not to join multiple programs given they are free. The only investment is your time to complete the information required.

Finally frequent renter programs do not have to mean another five cards in your back pocket. Each provider confirmed that as long as you have your number available you do not need to physically provide your card. So if you choose to join multiple programs, save your wallet from exploding by creating one card with the names, program numbers and phone numbers on it.

Links

Avis Preferred Service
Budget Fastbreak
Europcar Ready
Hertz #1 Club
Thrifty Blue Chip

Car Hire Insurance On Your Credit Card

Car Hire Insider — Tue, 02 Feb 2010 14:29:27 +0000

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.

ANZ and Westpac Gold/Platinum Credit Cards

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

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

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

Foreign Credit Cardholders

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.

You’ll want to ask your bank these few questions

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?

How Car Hire Insurance Claims Work

Car Hire Insider — Fri, 25 Sep 2009 06:45:10 +0000

Here’s a few more car hire insurance related points to note.

Money Business

If you damage your rental car, you can expect the car rental company to automatically deduct the MAXIMUM amount you are liable for (e.g. something like $2,750 if you haven’t taken out excess reduction) from the credit card you’ve registered with them. After evaluating the damages and if they ultimately amount to less than that, only then will they reimburse you for the difference. This can take time. Meanwhile, know that you’ll find yourself with a full excess charge sitting on your credit card.

This is the same if you’ve taken out third party car hire insurance. The car hire company will dutifully carry out the deduction as explained above, after which you’ll need to go through the process of making a claim from your insurance provider. As with all insurance claims, you can expect this to take several weeks before you’ll be reimbursed.

Bottomline is, even if you have insurance, if you do end up damaging your rental car, be aware you’ll probably be a little “extra poorer” for some time.

Don’t Breach Your Contract

There are various clauses in car rental contracts which explain what they deem a “breach of contract”. This could include driving on unsealed roads, on beaches, in the snow, drunk, or simply to certain off-limit locations like Kangaroo Island or Bruny Island.

If you do any of these things, your entire contract could be considered void. This means you may no longer be protected by any insurance as originally stated in your agreement. The cap on your damage liability may be nullified and you could potentially be charged up to the cost of the entire car if you end up in an accident anytime during the rest of your trip (i.e. even if it didn’t occur during your contract-breaching escapade). And you won’t be able to claim a dime.

So inform yourself on what they consider a breach, don’t do it and you’ll be fine.

In The Event of An Accident

Immediately inform your car hire company of the accident. Check with them (and your car hire insurance company, where applicable) for their specific procedures and requirements
Ensure you record the name and address of the individuals involved (i.e. driver and owner of the vehicles), as well as the registration plates and licence details
Get details of any witnesses who can testify as to what happened
If possible, take photos of the scene as further documentation
Notify the local police and obtain a signed police report

Driving Rental Cars to the Snow

Car Hire Insider — Thu, 06 Aug 2009 17:13:15 +0000

From Thredbo to Perisher, Falls Creek to Mt Baw Baw, comes the oft-asked question: Are you allowed to drive your rental car up to the snow?

In their standard terms and conditions, the Big Boys of Avis, Budget, Europcar, Hertz and Thrifty do NOT allow you to take any rental cars above the snowline or to any area that requires the use of snow chains during the winter season (June-Sep/Oct). If you do, you will be fully liable for any and all damages to the car. However, selected branches of the various companies do offer you the option to purchase additional “snow cover” insurance. Also, keep a look out for special winter deals that may already include the snow cover on some vehicles.

To make your life easier (that’s what we’re here for after all), we’ve compiled your options for you.

Winter 2011 Car Hire Guide for NSW and VIC

Snow cover is usually only available at selected branches. Always double check for your required pickup location and the exact details of the offer.

Budget
Look for the ‘Ski Magic’ deal on Intermediate up to Full-sized cars, 4WDs and Vans which allows you to drive to the snow from participating NSW and VIC locations. Standard excess applies. Available from pickups by 31 October 2011. Quote this BCD discount number: D010750 Go to Budget’s Offers page Click to expand terms and conditions * Available locations: VIC – Melbourne Southbank, Richmond, Sunshine, Footscray, Airport West, Camberwell, South Yarra/Prahran, Bayswater, Box Hill, Campbellfield, Clayton, Croydon, Dandenong, Frankston, Geelong, Highett, Hoppers Crossing, Preston, Sale and Traralgon. NSW – North Sydney, Manly, Artarmon and Gladesville * Vehicles: Car groups C, D, E, K, F, W and V only * Offer available for Australian residents only * Validity: Offer valid for rentals commencing between 11 May – 31 October 2011. * Rate includes: Vehicle registration recovery fee, Administration fee, GST, Unlimited kilometres * Rate excludes: Refuelling service charge, optional excess reduction and other optional miscellaneous charges. * One-way rentals: Are only permitted to Sydney or Melbourne Airports. * Minimum rental: 1 day * Drivers must be 25 years and older and payment is by credit card only * No night driving outside towns and cities * Offer cannot be used in conjunction with any other offer, coupon or promotion including local branch specials * Underbody Damage is not included in the stated excess coverage. * Offer subject to vehicle availability * Subject to the terms and conditions of the Budget Rental Agreement at the time of rental.
Europcar
*Australian Snow Package 2011* This deal is available on Economy up to Full-Sized cars, 4WDs and Vans and prices are inclusive of the Snow Protection Package which gives you a lowered liability of A$385 and also covers windscreen, headlights and tyres. Extra free snow chains are provided for hires 5 days or more. Available for pickups by 30 October 2011 at participating NSW, QLD and VIC locations. Quote this CD Number: 0050480354 Go to Europcar’s Snow Special Alternatively, you can make a regular booking and choose the A$13/day Snow Cover add-on which will allow you to take the car above the snowline. This be done during the online booking process. Taking the Peace of Mind (POM) Damage Liability Reduction option will lower your excess to the same $385 as above. Go to Europcar’s homepage We recommend comparing the two options to see which one works out cheaper or suits you better.
Hertz
A$22/day for SNO Cover on Economy up to Standard cars, 4WDs and Vans allows you to drive in the snow. Standard excess applies. This option can’t be added on online and must be done over the counter. Go to Hertz Click to expand terms and conditions Travelling in any Alpine Resort during the gazzetted snow season, or in any other area under conditions where a reasonable person would use snow chains, is deemed full responsibility use (refer to Rental Restrictions section). Hertz offers ‘SNO Cover’ at selected locations (listed below) for customers travelling to these areas under specific conditions: * The following vehicle groups are permitted for driving in Alpine Areas: A, B, H, C, S, E, T, R, V & E5 (Lexus RX350). * Damage caused as a result of the fitting of snow chains and/or ski racks is deemed negligence and full recovery will be sought. When SNO cover is taken, Damage Cover still stands, however customers also have the option of purchasing MAX or AER to reduce any accident damages excess (Refer to Coverage/Liability Protection). * The cost of SNO Cover is AUD $22.00 (incl. GST) per day and is to be applied to the rental. Primary Locations in the Alpine Areas NEW SOUTH WALES – Thredbo, Perisher Blue, Mount Kosciusko. VICTORIA – Falls Creek, Mount Hotham, Mount Bulla, Mount Baw Baw, Lake Mountain, Mount Beauty, Mount Buffalo, Pinacle Valley. Participating locations are as follows: Canberra City, Canberra Airport, Artarmon, Brookvale, Newcastle, Belmont, Williamtown, Parramatta, Gosford, Five Dock, Castlehill, Bankstown, Campbelltown, Wollongong, Nowra, Tamworth, Armidale, Sydney City, Sydney Airport, Melbourne City, Melbourne Airport, North Melbourne, Canberra 4WD, Albury, Avalon, Ballarat, Bendigo, Balwyn, Castlemaine, Cowra, Dandenong, Dubbo, Echuca, Essendon, Forbes, Frankston, Geelong, Gundagai, Kyneton, Lorne, Moorabbin, Merimbula, Mitcham, Parkes, Preston, Shepparton, South Yarra, Traralgon, Tumut, Wagga Wagga, West Wyalong, Werribee, Yass, Young.
Thrifty
A$22/day for Snow Cover allows you to drive in the snow. Standard excess applies. This option can be added on to your rental during the online booking process. Go to Thrifty
Bayswater Car Rental (Sydney only)
Available for Sydney rentals only, from June-September, a one-off A$50 Snow Cover fee will allow you to drive in the snow (specifically Cooma, Jindabyne, Perisher, Selwyn and Thredbo). It also comes with complimentary snow chains. Bayswater only carries Corolla Hatches and Sedans on which they offer excellent hire rates that come with a lowered Standard Cover of A$300. Go to Bayswater Car Rental

Car Hire Fees: What To Expect

Car Hire Insider — Sun, 20 Jul 2008 13:46:14 +0000

Plan your budget with these indicative final prices for a basic Australian car rental from the Big Boys (Avis, Hertz, Budget, Thrifty, or Europcar).

3-day Car Hire
Smallest Auto (Hatchback) $205 = $70/day
Full-sized Auto (Sedan) $240 = $80/day

7-day Car Hire
Smallest Auto (Hatchback) A$370 = $55/day
Full-sized Auto (Sedan) A$429 = $60/day

Note:
Smallest Automatic Hatchback: 5-door Hyundai Getz or equivalent
Full-sized Automatic Sedan: Toyota Aurion, Ford Falcon or equivalent
See car rental models for more information on the different types of cars available.

Prices are for airport car rentals booked one month in advance, with basic insurance and unlimited km’s. They are in A$ and are averaged across the 5 Big Boy companies for the major cities of Adelaide, Brisbane, Gold Coast, Melbourne, Perth and Sydney. If hiring from the city/downtown, expect to pay approximately 10-15% less. Sydney car rentals tend to be more expensive and can be 10-20% more than the average prices quoted above.

You can expect these final prices to be inclusive of the following charges (the better sites never hide these fees and their final quoted price is exactly that, final):

G.S.T. (10%)
Vehicle Licence/Registration fees ($3-5/day)
Administration Fee (~3%)
For airport car hires, Premium Location Fees / Airport Concession Fee (10-16%)

Common additional surcharges that would increase your final cost if applicable:

Additional insurance – Damage Liability Reduction (~$12-30/day)
Additional kilometres if not unlimited (~$0.20-0.30/extra km)
One-way fees (varies from free to substantial)
Age surcharge for those under 25 (~$5-25/day)
Additional authorised drivers (varies from free, one-off ~$10, to $5/day)
Other extras (e.g. G.P.S. $7-10/day, child safety seats $5-10/day)

Top Tips For Saving On Your Car Hire

Car Hire Questions To Ask

Car Hire Insider — Wed, 09 Jul 2008 16:03:48 +0000

A checklist of questions you should ask yourself and the car hire company before committing.

Ask Yourself…

To be able to find the best deal for yourself as quickly as possible, you should know exactly what you need and what your priorities are.

Most importantly: Do you really need a car?

What’s the minimum sized car you need? Can it comfortably fit everyone and your bags? If you’ll be doing stops while your luggage is with you, you’ll want to get a car that can fit it all in the boot

What are your expected pickup and drop-off times? Will it be outside opening hours?

Will you be the only driver? How old is/are the driver(s)? Some companies charge for additional drivers and drivers under 25 (usually must be at least 21) or above 75

Savings vs. branding – Are you willing to go for a local independent company for potentially cheaper prices or do you have a definite preference for the big brands of Avis, Hertz, Budget, Thrifty and Europcar? (If the latter is true for you, read our article on comparing these major car hire companies)

How much driving do you intend to do everyday? Is having unlimited km’s one of your car hire criteria? All the Big Boys offer it but you can quickly eliminate the independent companies that don’t

Car hire insurance – What level of protection do you require? Many companies have a standard “excess liability” of approx. A$3,000 (i.e. that’s the maximum you’ll be liable for). If you want this excess reduced, they often charge high rates of A$15-25/day. For possible major savings, do read our article on getting more car hire insurance for less

Savings vs. lower risk/comfort – Would you consider hiring a used car at a higher risk of mechanical problems and lesser comfort for extra savings?

Ask the Car Hire Company…

Be aware of exactly what you’re getting and check if it meets your needs. The best thing to do is to get a copy of the full rental contract in advance.

How old is your car? (Big Boys’ cars are usually under 1 year-old so this question is more important for independent companies)

Do they offer any discounts for longer term rentals?

What are their opening hours? If applicable for yourself, do they offer after-hours drop-offs?

How many km’s are included and if it isn’t unlimited, how much do they charge per extra km? (Big Boys include unlimited km’s unless otherwise stated. The independent companies vary)

What is covered (or more importantly, what ISN’T) by their standard insurance policy? Are damages to windscreen, tyres and headlights (W/H/T) or the roof and underbody covered? How are your-fault vs. not-your-fault accidents handled? How do they treat Single Vehicle Accidents (SVA) e.g. if you hit a tree/animal? Are personal injuries and damages to other vehicles or properties covered? It’s common for some of these to be excluded in the standard coverage

Where can you drive your vehicle? Is there a limit on distance you can take the car e.g. within 500km radius of your pickup location? Can you take the car on a ferry, off-road or in the snow (and still be covered by insurance)? Most companies require you stay on sealed roads unless you hire a 4WD

Is there a surcharge for additional drivers or an age surcharge?

When is payment due? Immediately upon booking or only when you pickup the car?

What are their cancellation or modification policies?

Will a security deposit or bond be charged to your credit card and if so, how much?

Will you get a refund for an early return?

Do they offer free transfers between the depot and the airport or your local accommodation? (for independent companies)

Do they offer any special discounts for any memberships and/or can you collect frequent flyer points?