First of all, let's explain the rental vehicle excess, your financial liability when hiring a rental car in Australia.
When you hire a rental car, you usually have a financial liability to pay for the costs to repair vehicle damage that is caused as a result of the car being stolen or damaged while in your possession.
The financial liability has a number of names including the rental vehicle excess, damage liability fee, damage recovery fee and accident damage excess. In most circumstances it is a capped amount that commonly ranges between $4,000 and $6,000 for standard vehicle types and more than $8,500 for prestige and large 4WDs. As the owners of the vehicle, the car rental company has insurance for the full hire car value and passes on the liability for the excess component to the customer hiring the vehicle.
The actual excess value varies depending on which car rental company you hire a vehicle from, what car type you hire and where you collect your hire car from. The excess amount and the damages that it covers, are set by the car rental company that you hire the vehicle from and are outlined in the rental agreement that you sign when you pick up your hire car.
As an example, if you hired a Toyota Corolla with a replacement value of $20,000 and your rental vehicle excess was $4,000, the maximum repair or replacement cost that you would have to pay to repair the vehicle’s body work would be $4,000. Every rental is unique so it's important to check the specific liability level, inclusions and exclusions of your specific rental when hiring a car.
So, what is Prosura Rental Vehicle Excess (RVE) Travel Insurance?
Prosura RVE Insurance is insurance for your rental vehicle excess expenses when hiring a rental car.
The policies are designed for people who want to be covered for the financial loss of up to $10,000 AUD against expenses paid to a rental provider, caused by theft of, or accidental damage to a qualifying rental vehicle during their rental period, where the rental vehicle is covered by the rental providers’ basic insurance, and subject to an capped excess. Full product inclusions, exclusions and terms and conditions are outlined in the Product Disclosure Statement (PDS).
For example, David hired a Toyota Corolla from ABC Rentals and his rental excess is $5,200. During his journey, he accidentally reversed the car into a pole in the car park which caused damage to the rear bumpers and glass. The car rental company assessed the damage repair cost to be $5,500.
David's credit card was charged $5,200 by the car rental company for the damage (his total excess amount as stated in the rental agreement). David then lodged a claim to the insurer and they assessed his claim. Upon assessment, the insurer reimbursed David the full $5,200 for his out of pocket expense charged by the car rental company.
This example is for illustrative purposes only; please consider your own personal circumstances including the terms of your rental agreement.