Does my car insurance cover rentals?

By Tara McCabe ·
Woman standing at a desk talking to an employee, hiring a car.

As with most things insurance-related, the answer as to whether rentals are covered under car insurance is not simple. Yes comprehensive car insurance does usually offer some cover for hire car costs. However, only in certain circumstances.

What types of car insurance cover rental cars?

First of all, if you want any kind of cover for hire cars, you will have to opt for either comprehensive or third party fire and theft car insurance. Compulsory third party insurance and third party property insurance will not cover you for rentals.

In what circumstances are hire car costs covered?

While third party fire and theft car insurance may provide some cover for hire car costs, it will be limited. Usually this type of insurance will only cover rental car costs, if your wheels are stolen.

Comprehensive car insurance, on the other hand, provides hire car cover for a few different scenarios. These usually include following a theft or a not-at-fault accident. Although some insurers will give you the option to add cover for a hire car following an at-fault accident, onto your policy.

Car insurance policies that offer hire car cover

Promoted
  • Up to $1,000 cover for rental car after theft
  • Cover for rental car after a no-fault accident
  • Option to add cover for a rental car after an at-fault accident

If you are involved in a car accident that is not your fault and you have this comprehensive car insurance policy, Budget Direct will arrange a hire car for you to use, until your car is repaired or your claim is paid. You’ll also be covered for up to $1,000 worth of hire car costs, should your car be stolen. Plus, if you want to make sure you are covered in the event that an accident is your fault, you can add ‘accident car hire’ cover to your policy. This will cover the cost of a hire car for up to 14 days.

Promoted
  • Rental car cover following theft
  • Cover for rental car following a no-fault accident
  • Option to add ‘accident hire car’ cover

In the event that your wheels are stolen or damaged as a result of theft, Qantas’s Comprehensive Car Insurance policy will cover hire car costs up to $1,000 and 14 days. On top of that, if you are involved in a no-fault accident, Qantas will also arrange a similar hire car for you to use, until your vehicle is repaired or your claim is paid. Plus, if you want to make your insurance that little bit more foolproof, you have the option to add ‘accident hire car’ cover for a bit extra. This will cover hire car costs for up to 14 days, if your car is damaged in an accident that you are responsible for.

Promoted
  • Rental car cover following theft
  • Rental car cover following a not-at-fault accident
  • Option to add cover for at-fault accidents

Stella’s Comprehensive Car Insurance policy provides cover for hire car costs, if your car is stolen or damaged during an attempted theft. This will cover hire car costs for up to 14 days, until your wheels are either recovered or repaired. Plus, if your vehicle is damaged and the accident isn’t your fault, Stella will cover hire car costs until your wheels are either repaired, or your claim is paid. Finally, there is even an optional extra you can add to your policy, if you want to be covered for hire car costs following an accident that is your fault. For this Stella will cover up to $75 worth of hire car costs per day, for up to 14 days.

What hire car costs doesn’t car insurance cover?

There are a few things to note with cover for rental car costs. The number one thing being that most insurers will only cover you for the actual cost to hire the car. In other words you won’t be covered for fuel costs and transport getting to and from where your hire car is.

You also won’t usually be covered for stuff like road tolls, traffic fines or any accidents that you may be in, while driving your hire car. So if you do have to hire a car for any of the above reasons, make sure you know what you are covered for, before you get behind the wheel.

Didn’t find the policy you were after? Check out our comprehensive car insurance hub for more options.

*Any information provided on this page should be considered a summary and general advice only. All information should be verified before purchase via the relevant Product Disclosure Statement (PDS).

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.

Tara McCabe
Tara McCabe
Money writer

Tara McCabe writes across all areas of personal finance here at Mozo from banking through to insurance. Tara is expert at practical money tips, showing readers ways to live richer and be socially conscious while doing it. She earned a BA (Hons) in English Literature from Canterbury Christ Church University.