Renting a car in Australia

[ibjoe]

USA citizen me and my Thai wife will visit Australia soon, for a few weeks, visas are done. We will rent a car. I understand that my USA drivers license plus my International Driver Permit are the only qualifications I need to drive. Also, I understand that liability and collision insurance are automatically provided by the car rental company, though there may be deductibles. My question is, when we pick up the car at the rental counter, will I be offered additional "zero deductible" insurance, and if so, at what kind of cost? That is, additional insurance such that if anything unfortunate did happen I would have no liability. Information, advice, insights appreciated, thank you.

[4MyEgo]

11 hours ago, ibjoe said:

I understand that my USA drivers license plus my International Driver Permit are the only qualifications I need to drive.

It is best to read the rental car companies driver licence acceptance policy, that said, sounds like your USA drivers license and IDP should qualify. Also if you have a Thai drivers license some car rental companies and states accept that.

 

11 hours ago, ibjoe said:

Also, I understand that liability and collision insurance are automatically provided by the car rental company, though there may be deductibles.

I believe some car rental companies include insurance, but the excess/waiver is on you, normally $4,000AUS, you can buy the excess/waiver, but be prepared to pay for it, some don't include insurance so best to read the policy on the website of the rental car company.

 

The above said, if you are thinking about taking out travel insurance, which I highly recommend, there are some policies that include an excess waiver amount up to $4,000AUS which is what I do as it's cheaper online than getting it from the car rental company, plus you get other cover for emergencies.

 

[ibjoe]

21 hours ago, 4MyEgo said:

It is best to read the rental car companies driver licence acceptance policy, that said, sounds like your USA drivers license and IDP should qualify. Also if you have a Thai drivers license some car rental companies and states accept that.

 

I believe some car rental companies include insurance, but the excess/waiver is on you, normally $4,000AUS, you can buy the excess/waiver, but be prepared to pay for it, some don't include insurance so best to read the policy on the website of the rental car company.

 

The above said, if you are thinking about taking out travel insurance, which I highly recommend, there are some policies that include an excess waiver amount up to $4,000AUS which is what I do as it's cheaper online than getting it from the car rental company, plus you get other cover for emergencies.

 

Thank you @4MyEgo

 

I don't have Thai license, but my wife does, maybe she can be a co-driver.

 

I want to know what is typical / standard practice about car rental insurance in Australia. What are the customary / usual options for international traveller for insurance when booking a car in Australia?

 

Research shows that all registered cars in Australia are required to have "Compulsory Third Party (CTP) Insurance" (compensation for any third parties who are injured or killed if the insured vehicle is involved in an accident), so presumably all rental cars include this liability insurance, and that cost is built into the booked rate, no extra costs for injury liability insurance.

 

When I go to book car rental via e.g. Travelocity I find typically "Basic Collision Damage Protection included". But I don't find the definition of that, what the deductibles are, and it doesn't appear to cover "Third Party Property Insurance" (damage that is caused to someone else’s property while driving your car).

 

Research is a lot of work! Insights and links to relevant pages are welcome.

 

[4MyEgo]

On 9/27/2023 at 10:35 AM, ibjoe said:

Thank you @4MyEgo

 

I don't have Thai license, but my wife does, maybe she can be a co-driver.

 

I want to know what is typical / standard practice about car rental insurance in Australia. What are the customary / usual options for international traveller for insurance when booking a car in Australia?

 

Research shows that all registered cars in Australia are required to have "Compulsory Third Party (CTP) Insurance" (compensation for any third parties who are injured or killed if the insured vehicle is involved in an accident), so presumably all rental cars include this liability insurance, and that cost is built into the booked rate, no extra costs for injury liability insurance.

 

When I go to book car rental via e.g. Travelocity I find typically "Basic Collision Damage Protection included". But I don't find the definition of that, what the deductibles are, and it doesn't appear to cover "Third Party Property Insurance" (damage that is caused to someone else’s property while driving your car).

 

Research is a lot of work! Insights and links to relevant pages are welcome.

 

I have rented from various companies over the years.

 

One I got from the front desk at the airport, others pick you up and take you to their office which is within a few minutes drive, others offer a shuttle service for a fee.

 

I have found this one to be the best in price and recent model cars.

 

Put in Mascot as the pick up location and then select the date and time you will be picking up and dropping off the car and then click select the car you prefer and click select, the webpage will take you onto the next page which allows you to add on the waiver for up to $5,000 for $7 per day which is cheap as chips, so to speak.

 

It's just a matter of knowing how many days/weeks you need the car and what kilometres you will be doing. I only hired the car for one day when I was there last, I Google mapped where I was going and it worked out to just over 100km's, so I booked the car for up to 100km's free and paid, if memory serves me correctly 0.30c per kilometre thereafter, and I did 10 extra kilometres so I think it was $3.00.

 

Do watch out as Sydney is full of speed and mobile speed cameras, red light cameras, and unmarked highway patrol cars, booze buses and the like, it's actually become a nightmare to drive as you're in fear of being caught out or pulled over.

 

The above said, if you don't really need the headache of driving, the public transport system is magic and you allow someone else to do the driving ????

 

https://www.bayswatercarrental.com.au/booking/options

 

https://www.bayswatercarrental.com.au/locations/sydney-airport

Edited September 30, 2023 by 4MyEgo

[ibjoe]

Thank you @4MyEgo  for this additional information and the Mascot links. I'm looking over the Mascot website now. I'm still not sure about insurance. I understand that Australia requires Compulsory Third Party (CTP) insurance with car registration, so is included in rental car rates, this covers injury to other people. I understand I can buy additional insurance from Mascot that covers their car, so my liability for damage to their car is $0. What I don't know is what insurance covers me for damage to other peoples cars if I am at fault in an accident, and how do I get that?

[KhunHeineken]

Pay the extra for unlimited kilometers.  You will need them. 

[ibjoe]

Thanks to all responders for their tips. But no one addressed my fundamental concern, what are third party property liability insurance options? Hours of web search didn't find much conclusive. Easy to find that third party PERSONAL INJURY / DEATH insurance is mandatory with vehicle registration and thus always automatically included aka "CTP" (Compulsory Third Party").

 

Third party PROPERTY insurance (e.g. if colliding with a structure or another vehicle) is less clear, but apparently is always part of the CDW (Collision Damage Waiver) automatically included with rental, albeit with variable and generally high "Excess" ("Deductible" in USA terms). Excess reduction or elimination insurance is available for extra cost, either from the car rental company, or from another insurance company, which usually has lower prices than the car rental company.

 

The details about Third Party Property insurance seem murky, I assume they are built into Australian law, so therefore aren't usually discussed. For example the rental company I eventually chose, Sixt, states "...your liability in the event of an accident for certain types of vehicle and property damage..." without elaborating on what "certain types" means. I didn't find any web references to limits, though sometimes they referred to as rather large. I looked at multiple car rental sites' rental contract / insurance documents, none have much detail.

 

I'm still interested in finding references / links to Australian third party property insurance details, but for now I'm going with what I got, whatever that is.

[moose7117]

Sir you will find that the Mandatory Third party insurance will be automatically added to your rental agreement, however this only covers costs associated with a person.

So if a person is involved in an accident with your vehicle , and you are found to be at fault. the insurance will cover their costs.

You will also be presented with various "Comprehensive " insurance options that will cover different types of damage if you have an accident, these will vary in price and exactly what they cover. and you will be offered different rates depending on the Excess amount you will pay if there is an accident.

Also in Australia , you will be liable for the excess even if you are not deemed at fault.

 

I have been renting vehicles for many years for work purposes and I have found the big players, AV!s, Hurtz etc. although they are expensive, they offer the best service.

 

It is depending on your use of the car as well., are you going to be driving around in a major city or are you going to be travelling the barren wasteland's that make up the rest of that place?

 

Thyird party insurance is not negotiable in Australia.

 

[ibjoe]

2 hours ago, moose7117 said:

Sir you will find that the Mandatory Third party insurance will be automatically added to your rental agreement, however this only covers costs associated with a person.

So if a person is involved in an accident with your vehicle , and you are found to be at fault. the insurance will cover their costs.

You will also be presented with various "Comprehensive " insurance options that will cover different types of damage if you have an accident, these will vary in price and exactly what they cover. and you will be offered different rates depending on the Excess amount you will pay if there is an accident.

Also in Australia , you will be liable for the excess even if you are not deemed at fault.

 

I have been renting vehicles for many years for work purposes and I have found the big players, AV!s, Hurtz etc. although they are expensive, they offer the best service.

 

It is depending on your use of the car as well., are you going to be driving around in a major city or are you going to be travelling the barren wasteland's that make up the rest of that place?

 

Thyird party insurance is not negotiable in Australia.

 

Thank you for your comment. We are renting the car for 3 weeks and will be traveling mainly in NSW (New South Wales) area, I think we aren't allowed in most other areas by the car rental company.

 

I understand completely about 3rd party compulsory PERSONAL insurance (covering ONLY injury or death I might cause to other people) my concern is only about 3rd party PROPERTY insurance. That is, if I am at fault in an accident, insurance that covers any damage I cause.

 

Are you saying there is no such thing as 3rd party PROPERTY insurance in Australia?

[moose7117]

14 hours ago, ibjoe said:

Thank you for your comment. We are renting the car for 3 weeks and will be traveling mainly in NSW (New South Wales) area, I think we aren't allowed in most other areas by the car rental company.

 

I understand completely about 3rd party compulsory PERSONAL insurance (covering ONLY injury or death I might cause to other people) my concern is only about 3rd party PROPERTY insurance. That is, if I am at fault in an accident, insurance that covers any damage I cause.

 

Are you saying there is no such thing as 3rd party PROPERTY insurance in Australia?

In Australia, you purchase Comprehensive insurance, what you call third party property,  this covers Your car, the other car, the hospital bills, the neighbor's cat and the Shopping mall that you drove through.

 

As for where you can drive to, you are usually limited to the number of kilometers per day or you pay extra and get unlimited kilometers.

You can drive interstate if you want however if you are driving of road you will need to get a suitable car.

You will also pay extra if you do not return car to original point of hire.

At present i am driving a Toyota Rav4 rented through Avis, company provided, unlimited kilometers but limited to driving on bitumen(Tarmac).

 

There are other options available as their are companies that organize one way trips for people, for example you will pick up a camper van and you will be required to drive it from one point to another, they will usually give a fuel allowance and you do not pay for the van, you just have to move it from point A to point B within the timeframe give.

You just have to get lucky and get a transport option that suits your plans.

Trips from Places like Darwin to Perth are quite common.

[4MyEgo]

On 10/21/2023 at 5:25 PM, ibjoe said:

Thanks to all responders for their tips. But no one addressed my fundamental concern, what are third party property liability insurance options? Hours of web search didn't find much conclusive. Easy to find that third party PERSONAL INJURY / DEATH insurance is mandatory with vehicle registration and thus always automatically included aka "CTP" (Compulsory Third Party").

As the company will provide you with full comprehensive insurance, otherwise known as (1st class insurance here in Thailand), that will cover everything above.

 

CTP is a compulsory insurance which is paid when you pay for your annual registration and is mandatory as you have noted.

So you have two types of cover one for the death/injury to others.

As Irish Paddy said, why do I wear 2 condoms; too be sure too be sure.

 

On 10/21/2023 at 5:25 PM, ibjoe said:

Third party PROPERTY insurance (e.g. if colliding with a structure or another vehicle) is less clear, but apparently is always part of the CDW (Collision Damage Waiver) automatically included with rental, albeit with variable and generally high "Excess" ("Deductible" in USA terms). Excess reduction or elimination insurance is available for extra cost, either from the car rental company, or from another insurance company, which usually has lower prices than the car rental company.

Third party property insurance covers the other drivers/property damage, but not the vehicle you are in, suffice to say rental companies have full comprehensive insurance, so forget about 3rd party other drivers car/property damage as the full comprehensive insurance will take over that part. It is usually taken out by people who can't or don't want full insurance for a variety of reasons, e.g. car not worth it, can't afford it, and of course don't want to pay out any damages in the event of an accident. They couldn't car less what happens to their car in the event of an accident as long as they don't have to pay damages.

 

On 10/21/2023 at 5:25 PM, ibjoe said:

The details about Third Party Property insurance seem murky, I assume they are built into Australian law, so therefore aren't usually discussed. For example the rental company I eventually chose, Sixt, states "...your liability in the event of an accident for certain types of vehicle and property damage..." without elaborating on what "certain types" means. I didn't find any web references to limits, though sometimes they referred to as rather large. I looked at multiple car rental sites' rental contract / insurance documents, none have much detail.

Don't worry about 3rd party as full comprehensive supersedes it.

 

On 10/21/2023 at 5:25 PM, ibjoe said:

I'm still interested in finding references / links to Australian third party property insurance details, but for now I'm going with what I got, whatever that is.

You will have full comprehensive insurance under the rental agreement, however the excess/waiver is usually not covered so in the event of an accident you will be required to pay the excess/waiver, i.e. unless you have taken out excess/waiver insurance, as I mentioned earlier, you can buy it through the rental company or some travel insurance policies have an excess/waiver amount, usually $4,000 built into it.

 

No Birds usually charge $5 per day on top of the car rental, and you will find that they are cheaper than other car rentals.

 

Hope that clears it all up for you.

[4MyEgo]

On 9/30/2023 at 1:35 PM, ibjoe said:

I understand I can buy additional insurance from Mascot that covers their car, so my liability for damage to their car is $0. What I don't know is what insurance covers me for damage to other peoples cars if I am at fault in an accident, and how do I get that?

Apologies for the late reply, I must have missed your post.

 

You will be provided with FULL insurance on the vehicle you rent, which will cover your vehicle and any other vehicle/property/theft etc etc.

 

What you should take out is excess/waiver coverage, this covers you paying out usually up to $4,000 in the event of an accident, it's similar to you having an accident in your own vehicle, your insurer if fully insured will fix your vehicle and the other parties vehicle, however will ask you to pay them the excess/waiver as per your insurance policy.

Not sure if that is how it works in the USA, but I know that's how it works in Oz and Thailand.

 

Just remember, your fully covered by the rental company, so don't worry about having an accident, they cover the other side as well, you just have to worry about paying out up to $4,000 in the event of an accident which is for the excess/waiver in the insurance policy, it's a small fee to pay to protect you in the event of a mishap, but not compulsory to take out the excess/waiver damage coverage. In other words it's insurance for your pocket in the event of an accident, nothing else. I always take excess/waiver coverage through the rental company or the travel plan/policy if it has one and would recommend you do as well.

[ibjoe]

Thank you for your patience with my questions. Now I understand that 3rd party insurance is automatic for rental cars, required by Australian law, despite I found several web sites that say otherwise. I'd still like to know the specific legal code that mandates 3rd party property insurance for rental cars, but I accept that it exists, and my target car rental company confirmed that it's covered for my rental. Also I understand all the details about Excess, Terms & Conditions, etc. Soon my wife and I will be touring NSW for a few weeks in the rental car, looking forward to that.

[TroubleandGrumpy]

Get the full insurance coverage possible - the lot. Worth it if something happens like an accident or stolen. Otherwsie holiday will be ruined. 

[ibjoe]

My main question was about 3rd party property insurance. It was difficult to find an answer. Now I understand that rental car companies in Australia are responsible for the actions of their renters, so will always have insurance, though with high excess, which they pass on to renters.

I am from California, where rental car companies do not have liability for the actions of their renters, liability is primarily on the renter, not the rental company. So I always consider what is my liability when renting a car in any locale.

Understanding that Australian rental car companies have liability for the actions of their renters explains why all reputable Australian rental car companies will have 3rd party property insurance automatically.

We are cruising around Australia now, and yes I bought zero excess insurance.