Terms Unclear Regarding Credit Card Rental Vehicle Insurance

borgainerz on 16/11/2022 - 10:01
Last edited 16/11/2022 - 10:06

Morning,

I'm about to apply for a credit card that includes a Travel Insurance. This will be super useful for our vehicle rental.
EDIT: CommBank Low Fee Gold - PDS: https://www.commbank.com.au/content/dam/commbank-assets/impo…

However, I do not understand this statement in the PDS:

Benefit 15: Rental Vehicle Insurance Excess
This cover applies if you:
• hire a rental vehicle
• are the nominated driver on the rental vehicle agreement,
and
• have purchased motor vehicle insurance or a damage waiver from the rental company or agency you rented the rental vehicle from.

What I am missing here? If I have to purchase a damage waiver from the rental company then why would I need the cover from the Credit Card Travel Insurance??? As I would not be paying any damage.

Is there something I don't understand ?

Thank you

Travel

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Comments

  • oscargamer on 16/11/2022 - 10:04
    +1

    Given you haven't told us the card issuer, you should probably get in touch with them and ask them this question….

    • borgainerz on 16/11/2022 - 10:06

      edited thanks
      (commbank low fee gold: https://www.commbank.com.au/content/dam/commbank-assets/impo…)

      • Baysew on 16/11/2022 - 10:09

        In that case phone: 1300 467 951

        Spoiler Alert: They will probably point out -

        If the rental vehicle is damaged or stolen while in your control
        during your period of cover, we will pay the lower of the rental
        vehicle insurance excess or the liability fee you are required
        to pay under a damage waiver or the repair costs to the rental
        vehicle that you become liable to pay

        In other words they are only covering you for the excess on the insurance.

        • borgainerz on 16/11/2022 - 10:15

          I pay for phone call !!!
          :p

        • oscargamer on 16/11/2022 - 10:37

          Yes, because the rest will be taken care of by the insurance company.

          Renter only responsible for excess (under normal circumstances)

      • oscargamer on 16/11/2022 - 10:12

        It means that you still have to buy the minimum insurance when you rent the car. If you have to pay the excess (for whatever reason) you then claim on your cc, the cost of that excess .

        • borgainerz on 16/11/2022 - 10:25

          I'm lacking some vocabulary here,
          what is the minimum insurance? Is it an addon or included with the base price? Is it "Loss Damage Waiver (LDW), Liability Insurance Supplement (LIS), Personal Accident Insurance/Personal Effects Coverage (PAI/PEC)." stuff like this?
          Thanks

          • oscargamer on 16/11/2022 - 10:32
            +1

            @borgainerz: When you rent a car, minimum insurance is included in the hire cost 99.9% of the time - BUT PLEASE CONFIRM THIS.

            The excess is huge (say $5000 plus). You have to pay the excess if there is an incident that requires you to pay the excess.

            At time of rental, the rental company will try to make you pay more to reduce the excess to a reasonable figure.

            If you pay for the rental with your new shiny CC, and you have an incident, you can claim the excess you pay back from the CC company.

            • borgainerz on 16/11/2022 - 10:35

              @oscargamer: Thanks; yes that's what I thought, it is included in the price of the rental. I don't need to buy the Extra Cover from the rental agency; because my CC company will already cover the excess. Right? Right?

              • oscargamer on 16/11/2022 - 10:36

                @borgainerz: That is correct. IMO

                EDIT - be aware that most travel insurance also has this facility

              • Shadowsfury on 16/11/2022 - 10:57
                +1

                @borgainerz: Yes but there are SOME instances where there is ZERO insurance provided by default when renting a car - I have seen it twice in my dozens of times renting a car so its rare but can happen. These situations are where you need to ensure there's at least something covering you so that your liability is limited to the excess (e.g. $5000) which your CC insurance will then kick in and pay.

                • oscargamer on 16/11/2022 - 11:36
                  +1

                  @Shadowsfury: Which is why I said, "is included in the hire cost 99.9% of the time - BUT PLEASE CONFIRM THIS."

                • oscargamer on 16/11/2022 - 11:44
                  +1

                  @Shadowsfury: "which your CC insurance will then kick in and pay."

                  Sort of. The renter has to pay the excess first, then claim that money back from the CC provider.

  • AndyC1 on 16/11/2022 - 10:09
    -3

    Thank you for calling the Commonless hotline, your call is not important to us on OZ Bargain so please call the Commonweath bank and ask them.

    • borgainerz on 16/11/2022 - 10:12

      me understand better my fellow regarded from ozbargain

  • Seraphin7 on 16/11/2022 - 10:22

    Sounds like it provides you with cover for the excess attached to the insurance you buy from the rental company … it's not the insurance itself.

  • blitz on 16/11/2022 - 10:47
    +1

    When you hire a car, they often offer a damage waiver in addition to the regular insurance. Rental insurance might have, say, a $3000 excess, but the damage waiver (for an additional, say, $10 a day) brings the excess down to, say, $400. The bank wants you to get the damage waiver with the rental insurance.

  • Meho2026 on 16/11/2022 - 10:58
    +4

    Usually when you rent a vehicle, a collision damage waiver is included in the hire fee. There is basic insurance included too, its just that the accidental damage excess is high.

    The hire company optional extra is to lower the excess on that same insurance. Your credit card insurance will cover that excess up to a set value but there are some tricks to watch out for.

    If you elect to pay the car hire excess reduction that can void your credit card cover.

    If you have what is classed as a single vehicle accident, the excess can be $5500 which will probably be beyond the credit card cover limit.
    A single vehicle accident can be anything from you reversing into a wall, being side swiped when parked or just not being able to identify the person responsible for the damage.

    Also the car hire companies can add up all the excesses, so if someone rear ends you and its a hit and run (single vehicle accident because you cant identify the driver). That impact then propels you into oncoming traffic and you have a front on collision with another vehicle. Then the car hire company can view it as separate incidents and apply two excesses.

    Usually neither the car hire insurance or the credit card insurance will cover damage to tyres, windscreens , underbody and roof.

    If you want better cover, you need a standalone policy and like the credit card insurance it that can often mean paying the excess to the car hire company then claiming it back.

    Before covid, this used to be the best standalone cover, https://www.rentalcarprotection.com.au/

    • borgainerz on 16/11/2022 - 12:45

      Thanks, so basically I'm good (see image https://imgur.com/a/XU12yy7 )

      It says "includes partial damage waiver in case of collision (an excess apply)"

    • KevinFine on 22/11/2022 - 21:34

      @Meho.. Is that provider no longer good? Was looking at them today.

      Any other suggestions?

  • 87percent on 16/11/2022 - 11:20
    +1

    I do have to admit, reading PDS makes me confused half the time!

    • borgainerz on 16/11/2022 - 12:38

      Haha thanks! I feel less lonely

  • bargaino on 16/11/2022 - 12:54
    +1

    In Australia, insurance/CDW is always included with car hire.
    But the linked commbank policy only covers overseas travel!

    In the US, you can rent a car with no insurance, just your credit card. I guess they can try to bill your card for $40k or whatever if you wreck it.

    Note also that there are many exclusions to the CDW, and the credit-card insurance will not cover that either.
    e.g. underbody damage, overhead damage, windscreen or tyre, …

  • ankti231 on 16/11/2022 - 15:08

    Rental Vehicle Insurance Excess

    It would seem you're missing the last word of the title

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