A Travel and vacations forum. TravelBanter

If this is your first visit, be sure to check out the FAQ by clicking the link above. You may have to register before you can post: click the register link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below.

Go Back   Home » TravelBanter forum » Travel Regions » Australia & New Zealand
Site Map Home Authors List Search Today's Posts Mark Forums Read Web Partners

Car Rental Insurance System in Australia?



 
 
Thread Tools Display Modes
  #1  
Old January 22nd, 2005, 06:00 AM
RQ
external usenet poster
 
Posts: n/a
Default 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  
Old January 22nd, 2005, 06:28 AM
A Mate
external usenet poster
 
Posts: n/a
Default

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  
Old January 22nd, 2005, 12:04 PM
David Bennetts
external usenet poster
 
Posts: n/a
Default


"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  
Old January 22nd, 2005, 02:11 PM
Gerrit 't Hart
external usenet poster
 
Posts: n/a
Default


"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  
Old January 26th, 2005, 09:49 PM
RQ
external usenet poster
 
Posts: n/a
Default

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  
Old January 28th, 2005, 12:50 AM
David Bennetts
external usenet poster
 
Posts: n/a
Default


"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


 




Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is Off
HTML code is Off
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
Insurance fails to pay up. Miss L. Toe Air travel 49 November 10th, 2004 09:47 AM
car rental insurance HELP Anonymous Australia & New Zealand 0 July 30th, 2004 05:43 AM
Auto rental optional insurance Harlen Ng Travel - anything else not covered 3 July 9th, 2004 06:19 PM
14 CDS FOR TRADERS!! Linda Travel Marketplace 0 April 4th, 2004 04:54 AM


All times are GMT +1. The time now is 11:16 AM.


Powered by vBulletin® Version 3.6.4
Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.
Copyright ©2004-2024 TravelBanter.
The comments are property of their posters.