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#1
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Car Rental Insurance System in Australia?
I may be visiting Australia and renting a car while there, but would like to
better understand how the insurance system works, and how the various coverages might relate to any coverage that might be provided by, say, my credit card, what additional coverage I may need to purchase, etc. 1) How does the liability system for third party injuries, legal action etc. work? I.e. can drivers be sued as the result of a car accident (e.g. for personal injuries to third parties), and if so, what insurance is included and/or available to cover such potential liability? (I understand that in New Zealand, drivers can't be sued for such damages, and instead personal injury claims are covered by the governmental Accident Compensation Corporation. Does a similar system exist in Australia?) 2) I took a look at one company's car rental "terms and condition" document available on the net (which doesn't seem to mention the personal injury/legal liability issue raised above), and which includes some terms which aren't really explained. It seems to say that the renter has to pay the following, apparently on a "per incident" basis, regardless of cause or fault. No $ figures are given. a) the "Loss or Damage Liability Fee", b) the "Area of Use Liability Fee", c) the "Single Vehicle Accident Liability Fee". (This one is explained more fully...i.e. no other vehicle involved, or the other vehicle is stationary, but no $ figure is provided.) What do these terms (especially (a) and (b) refer to? 3) In general, what is included in the "standard cover" insurance included with the basic rental cost, and what insurance must/can be purchased as additional cover? The terms and conditions I looked at said that their standard cover would also include amounts related to "prior accident value or repair costs". Not sure what this means. 4) What are the usual insurance excesses or deductibles (i.e. $ amounts)? What are the usual $ limits on costs for damage to the rental vehicle and/or third party property damage (and legal liability, if it applies)? 5) Are there any other issues car rental insurance which aren't mentioned above but which should be taken into account when deciding on a rental car arrangement? I realize that some of these parameters/costs will vary by rental company, but I'd like to understand in general how the system works there, what possible "fine print" to be aware of etc. All comments/suggestions/personal knowledge and experiences re this stuff appreciated. RQ |
#2
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Sounds to me like you're from the USA (or Canada) - the system's roughly the
same in Austr as in North America - in every State except Tasmania, which has a liability compensation scheme similar to the NZ one. One major difference is the coverage for personal liability in the case of injury or death included in the car Registration system. All hire (and private) cars carry CTP insurance which indemnifies the driver against personal injury claims! Otherwise - Do here what you'd do at home. Australia is at least as litigious a society as Canada or the US!! "RQ" wrote in message ... I may be visiting Australia and renting a car while there, but would like to better understand how the insurance system works, and how the various coverages might relate to any coverage that might be provided by, say, my credit card, what additional coverage I may need to purchase, etc. 1) How does the liability system for third party injuries, legal action etc. work? I.e. can drivers be sued as the result of a car accident (e.g. for personal injuries to third parties), and if so, what insurance is included and/or available to cover such potential liability? (I understand that in New Zealand, drivers can't be sued for such damages, and instead personal injury claims are covered by the governmental Accident Compensation Corporation. Does a similar system exist in Australia?) 2) I took a look at one company's car rental "terms and condition" document available on the net (which doesn't seem to mention the personal injury/legal liability issue raised above), and which includes some terms which aren't really explained. It seems to say that the renter has to pay the following, apparently on a "per incident" basis, regardless of cause or fault. No $ figures are given. a) the "Loss or Damage Liability Fee", b) the "Area of Use Liability Fee", c) the "Single Vehicle Accident Liability Fee". (This one is explained more fully...i.e. no other vehicle involved, or the other vehicle is stationary, but no $ figure is provided.) What do these terms (especially (a) and (b) refer to? 3) In general, what is included in the "standard cover" insurance included with the basic rental cost, and what insurance must/can be purchased as additional cover? The terms and conditions I looked at said that their standard cover would also include amounts related to "prior accident value or repair costs". Not sure what this means. 4) What are the usual insurance excesses or deductibles (i.e. $ amounts)? What are the usual $ limits on costs for damage to the rental vehicle and/or third party property damage (and legal liability, if it applies)? 5) Are there any other issues car rental insurance which aren't mentioned above but which should be taken into account when deciding on a rental car arrangement? I realize that some of these parameters/costs will vary by rental company, but I'd like to understand in general how the system works there, what possible "fine print" to be aware of etc. All comments/suggestions/personal knowledge and experiences re this stuff appreciated. RQ |
#3
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"RQ" wrote in message ... I may be visiting Australia and renting a car while there, but would like to better understand how the insurance system works, and how the various coverages might relate to any coverage that might be provided by, say, my credit card, what additional coverage I may need to purchase, etc. 1) How does the liability system for third party injuries, legal action etc. work? I.e. can drivers be sued as the result of a car accident (e.g. for personal injuries to third parties), and if so, what insurance is included and/or available to cover such potential liability? (I understand that in New Zealand, drivers can't be sued for such damages, and instead personal injury claims are covered by the governmental Accident Compensation Corporation. Does a similar system exist in Australia?) Before getting a vehicle registered in Australia you need "third party" insurance which is basically for injury/liability. We don't have a similar system to New Zealand. This type of insurance is invariably included in the rental. 2) I took a look at one company's car rental "terms and condition" document available on the net (which doesn't seem to mention the personal injury/legal liability issue raised above), and which includes some terms which aren't really explained. It seems to say that the renter has to pay the following, apparently on a "per incident" basis, regardless of cause or fault. No $ figures are given. a) the "Loss or Damage Liability Fee", b) the "Area of Use Liability Fee", c) the "Single Vehicle Accident Liability Fee". (This one is explained more fully...i.e. no other vehicle involved, or the other vehicle is stationary, but no $ figure is provided.) What do these terms (especially (a) and (b) refer to? Check with the rental car company concerned - perhaps the one you're looking at has an additional fee if you go beyond a certain distance or into another state, with the major car rental companies you wouldn't usually have this problem, commonly you'll find they rent out cars with interstate registraion .. 3) In general, what is included in the "standard cover" insurance included with the basic rental cost, and what insurance must/can be purchased as additional cover? The terms and conditions I looked at said that their standard cover would also include amounts related to "prior accident value or repair costs". Not sure what this means. Would generally cover you for loss or damage to the vehicle, except for an "excess" Note that you are often not covered for tyre or windscreen damage, nor damage incurred when driving on unsealed roads. There will be other exclusions, such as using the car for racing or towing for example. 4) What are the usual insurance excesses or deductibles (i.e. $ amounts)? What are the usual $ limits on costs for damage to the rental vehicle and/or third party property damage (and legal liability, if it applies)? Normally there are deductibles as you put it, they usually vary according to the value of the car, the cheaper and smaller ones have smaller excesses than the larger and more expensive models. They vary from company to company, so you need to ask. 5) Are there any other issues car rental insurance which aren't mentioned above but which should be taken into account when deciding on a rental car arrangement? You've looked into into quite thoroughly, but always ensure that you get a condition report before driving off in the car, with any damage clearly marked so that you don't get hit with a bill for pre-existing scrapes or dents. I realize that some of these parameters/costs will vary by rental company, but I'd like to understand in general how the system works there, what possible "fine print" to be aware of etc. All comments/suggestions/personal knowledge and experiences re this stuff appreciated. RQ Regards David Bennetts Australia |
#4
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"David Bennetts" wrote in message ... SNIP c) the "Single Vehicle Accident Liability Fee". (This one is explained more fully...i.e. no other vehicle involved, or the other vehicle is stationary, but no $ figure is provided.) One thing I would not do is rent a car without "single vehicle accident" cover. Things like: running into the local wildlife, going off the road as a result of hitting the local wildlife, sliding off a gravel road because you are going too fast for the gravel to provide any traction, reversing into a bollard in a shopping centre carpark, scratches in the paintwork done by lovely locals, etc, etc, are just not covered and could (in the case of a write off) cost an absolute fortune. You have been warned! Gerrit - Oz |
#5
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Thanks to those who responded.
I'm still researching various providers, but some additional points prompted by responses here or info on car rental websites etc. a) It appears that many car rental companies have a standard excess/deductible (applying to damage to the vehicle or to any third party property) amounting to $Aus 2000-$2750, even for compact cars. Reducing this excess to (what I would consider to be) a reasonable level of approximately $300-$600 seems to cost up to $18/day, depending on the company, vehicle and length of hire. This excess is at least twice as high, and in many cases three times (or more) as high as the case for New Zealand rental car companies that I researched (and the one I used) a year ago or so. I realize that sometimes credit card plans will cover the excess, for damage to the vehicle. But at least some such plans would NOT cover damage to third party property. I assume such "third party property" would include the vehicle of another party, if the renter were deemed to be at fault in the accident. Not sure why the default excess is so much higher in Australia than NZ, but from my perspective it seems to mean that the "sticker" Australian car rental price should effectively be ignored, unless the renter is willing to accept a particularly high level of risk. b) Standard terms and conditions (the ones I've seen at least) exclude coverage for water damage, which would seem to mean that the vehicle couldn't (or at least shouldn't) be taken on the ferry to Tasmania. Although I haven't seen this issue addressed specifically, I assume that if the company also serves Tasmania, they will let the renter drop the car on one side and pick one up on the other side? (Others have noted that some companies allow a hire to be split up into segments, and treated as one continuous hire, so I assume that would apply here.) Does anyone have any further comments/suggestions in this regard? c) A further question alluded to in (a) above: What role does driver fault play in the Australian system(s)? I assume an "at fault" driver is liable for the cost of damage to any other automobile/property, and that these costs would be paid through the "at fault" driver's insurance company? And what if that driver is uninsured? E.g. if I'm in an accident caused by another driver who, for whatever reason, is not carrying insurance, would my own (i.e. the rental car) insurance then automatically cover the damage to the rental vehicle and any damaged property of "not at fault" third parties? d) the personal injury liability insurance included in the vehicle registration: Do I understand correctly that an injured party can sue a driver deemed to be "at fault", but that the liability insurance which a vehicle owner must purchase (from a private sector insurer) as part of the registration would always cover any damages awarded? Or could one be sued for a higher dollar amount than the insurance would cover? e) (Not an insurance issue) - As mentioned, I'm still working on the research, but so far I haven't found any company (without a rental depot in an airport) which offers shuttle service to and from the airport. Perhaps I just haven't found them yet, but in NZ (Auckland at least) this service seemed to be relatively common, so I was a bit surprised to find (some) Australian companies saying basically that it's the customer's problem to find them. Can anyone suggest some companies that do offer such shuttle service, particularly in Sydney, Hobart and/or Melbourne? Thanks for any further information. RQ |
#6
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"RQ" wrote in message .. . Thanks to those who responded. I'm still researching various providers, but some additional points prompted by responses here or info on car rental websites etc. a) It appears that many car rental companies have a standard excess/deductible (applying to damage to the vehicle or to any third party property) amounting to $Aus 2000-$2750, even for compact cars. Reducing this excess to (what I would consider to be) a reasonable level of approximately $300-$600 seems to cost up to $18/day, depending on the company, vehicle and length of hire. This excess is at least twice as high, and in many cases three times (or more) as high as the case for New Zealand rental car companies that I researched (and the one I used) a year ago or so. I guess (cynically) that this is a way to get a bit more yield from the customer. I realize that sometimes credit card plans will cover the excess, for damage to the vehicle. But at least some such plans would NOT cover damage to third party property. I assume such "third party property" would include the vehicle of another party, if the renter were deemed to be at fault in the accident. Most credit cards or travel insurance would perhaps cover accident damage to the vehicle. But if it is damage not related to an accident eg stone chips, supermarket trolley scrapes, breakin, malicious damage, etc then you most likely aren't covered. Not sure why the default excess is so much higher in Australia than NZ, but from my perspective it seems to mean that the "sticker" Australian car rental price should effectively be ignored, unless the renter is willing to accept a particularly high level of risk. Would agree. b) Standard terms and conditions (the ones I've seen at least) exclude coverage for water damage, which would seem to mean that the vehicle couldn't (or at least shouldn't) be taken on the ferry to Tasmania. Although I haven't seen this issue addressed specifically, I assume that if the company also serves Tasmania, they will let the renter drop the car on one side and pick one up on the other side? (Others have noted that some companies allow a hire to be split up into segments, and treated as one continuous hire, so I assume that would apply here.) Does anyone have any further comments/suggestions in this regard? I don't think you would find it an economical proposition to take the car on the ferry, better to hire each side of Bass Strait. Much the same with New Zealand, hire a separate car on each island. c) A further question alluded to in (a) above: What role does driver fault play in the Australian system(s)? I assume an "at fault" driver is liable for the cost of damage to any other automobile/property, and that these costs would be paid through the "at fault" driver's insurance company? And what if that driver is uninsured? E.g. if I'm in an accident caused by another driver who, for whatever reason, is not carrying insurance, would my own (i.e. the rental car) insurance then automatically cover the damage to the rental vehicle and any damaged property of "not at fault" third parties? There's a "knock for knock" agreement between many insurance companies, so that the excess can in theory be recovered from the at fault driver. If the driver of the other car isn't insured, then sorry, you can only try to recover the damages from the individual. That may prove difficult or even impossible. d) the personal injury liability insurance included in the vehicle registration: Do I understand correctly that an injured party can sue a driver deemed to be "at fault", but that the liability insurance which a vehicle owner must purchase (from a private sector insurer) as part of the registration would always cover any damages awarded? Or could one be sued for a higher dollar amount than the insurance would cover? Interesting question - in theory you are fully covered for any injury or death compensation costs, which could amount to millions of dollars. e) (Not an insurance issue) - As mentioned, I'm still working on the research, but so far I haven't found any company (without a rental depot in an airport) which offers shuttle service to and from the airport. Perhaps I just haven't found them yet, but in NZ (Auckland at least) this service seemed to be relatively common, so I was a bit surprised to find (some) Australian companies saying basically that it's the customer's problem to find them. Can anyone suggest some companies that do offer such shuttle service, particularly in Sydney, Hobart and/or Melbourne? Don't know whether they exist, you probably have to pay for the shuttle or taxi to the off airport site. Thanks for any further information. Pleasure David Bennetts |
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