Credit Card Car Hire Insurance Cover

Information verified correct on May 25th, 2016
credit card with car insurance

When it comes to credit card and car rental insurance, you need to know what is covered and what’s not.

What is credit card car rental insurance?

Car rental insurance is usually an extra service you pay for with an eligible credit card. Generally, the insurer will reimburse you for the amount of any collision excess that you have paid if you’re under any car rental agreements with a car rental service or business. The car needs to be registered in Australia and affiliated overseas locations where you are the hirer or the joint hirer and you were driving the vehicle when the collision occurred. There will be a number of situations when your insurer may not reimburse you for your costs, so it’s always good to read the terms and conditions to know exactly what you’re covered for.

Credit Cards with Car Hire Insurance Cover

Rates last updated May 25th, 2016
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee
HSBC Platinum Credit Card
Receive a full annual fee refund and save $149 if you meet the $6,000 spend requirement. Enjoy a balance transfer offer and platinum card benefits such as complimentary insurances and concierge services.
19.99% p.a. 0% p.a. for 15 months $149 p.a. Go to site More info
ANZ Platinum Credit Card
A low interest rate offer on balance transfers with a $0 annual fee for the first year.
19.74% p.a. 0% p.a. for 18 months with 3% balance transfer fee $0 p.a. annual fee for the first year ($87 p.a. thereafter) Go to site More info
Bankwest Breeze Gold MasterCard
Receive premium card benefits, complimentary travel insurance and enjoy 5% cash back* (up to $300) on eligible purchases. Terms and conditions apply.
12.99% p.a. 2.99% p.a. for 9 months $89 p.a. Go to site More info
Commonwealth Bank Low Rate Gold Credit Card
Take advantage of the $250 cash back offer if you apply by 30 June 2016 and spend $500 on eligible purchases by 31 July 2016. A low rate card that comes with up to 55 days interest-free on purchases combined with complimentary international travel insurance.
13.49% p.a. 5.99% p.a. for 5 months $89 p.a. Go to site More info
American Express Platinum Card
Receive 100,000 Membership Rewards Bonus Points and earn up to 3 points per dollar spent. Gain access to travel insurance, $300 Platinum Travel Credit every year and access to 800 VIP airport lounges.
$1,200 p.a. Go to site More info
ANZ Frequent Flyer Platinum
Get 50,000 bonus Qantas Points when you spend $2,500 within the first three months and $0 p.a. annual fee for the first year. Earn up to 1.5 Qantas Points per $1 spent on purchases.
19.99% p.a. $0 p.a. annual fee for the first year ($295 p.a. thereafter) Go to site More info
Commonwealth Bank Low Fee Gold Credit Card
Gold card privileges such as complimentary international travel insurance with interest-free days and $0 annual fee for the first year.
19.74% p.a. 5.99% p.a. for 5 months $0 p.a. annual fee for the first year ($89 p.a. thereafter) Go to site More info
Bankwest Breeze Platinum MasterCard
Enjoy no foreign transaction fees on online and overseas purchases, complimentary travel insurance and enjoy 5% cash back* (up to $300) on eligible purchases. Terms and conditions apply.
12.99% p.a. 2.99% p.a. for 9 months $99 p.a. Go to site More info
ANZ Rewards Platinum
Pay no annual fee for the first year, receive 50,000 bonus Reward Points when you spend $2,500 on purchases within the first 3 months, and earn up 2 Reward Points for every dollar spent on purchases.
18.79% p.a. $0 p.a. annual fee for the first year ($95 p.a. thereafter) Go to site More info
Commonwealth Bank Platinum Awards Credit Card
Enjoy 80,000 bonus CommBank Awards points when you apply by 30 June 2016 and spend $1,000 on eligible purchases by 31 July 2016. Earn up to 2.5 Awards points per dollar spent and receive complimentary international travel insurance.
20.24% p.a. 5.99% p.a. for 5 months $249 p.a. Go to site More info
BankSA Amplify Signature
Enjoy a long term balance transfer offer of 0% p.a. for 20 months. Plus a purchase offer of 0.99% p.a. for 4 months.
0.99% p.a. for 4 months (reverts to 19.49% p.a.) 0% p.a. for 20 months $279 p.a. Go to site More info
ANZ Low Rate Platinum Credit Card
Enjoy platinum benefits with exclusive discounts, complimentary travel insurance and personal concierge. Also repay your credit card debt interest free with 0% for 18 months on balance transfers.
13.49% p.a. 0% p.a. for 18 months with 3% balance transfer fee $99 p.a. Go to site More info
BankSA Amplify Platinum
Enjoy a generous earn rate, plus the ability to tailor your rewards with your choice of rewards programs.
0.99% p.a. for 4 months (reverts to 19.49% p.a.) 0% p.a. for 18 months $99 p.a. Go to site More info
Bank of Melbourne Amplify Platinum
A low annual fee card with a low balance transfer offer of 0% p.a. for 18 months and 0.99% p.a. for 4 months on purchases combined with 24/7 concierge service.
0.99% p.a. for 4 months (reverts to 19.49% p.a.) 0% p.a. for 18 months $99 p.a. Go to site More info
Commonwealth Bank Diamond Awards Credit Card
Receive 80,000 bonus CommBank Awards points when you apply by 30 June 2016 and spend $1,000 on eligible purchases by 31 July 2016. Earn up to 3 Awards points per $1 spent.
20.24% p.a. 5.99% p.a. for 5 months $349 p.a. Go to site More info
Commonwealth Bank Awards Credit Card
Dual credit card with balance transfer offer of 5.99% p.a. for 5 months and earn up to 1.5 Awards points per dollar spent.
20.24% p.a. 5.99% p.a. for 5 months $59 p.a. Go to site More info

What are the types of credit card car rental insurance?

There is usually one type of car rental insurance that you can get with your eligible credit card. The insurer could offer free collision and auto theft coverage, as well as a towing service. However, some credit cards don’t offer free supplementary liability insurance which covers damages to other vehicles, property or people so it’s important that you know this before signing the rental car contract. Luxury vehicles may also be exempt.

How does credit card car rental insurance work?

Car rental insurance is designed to reduce your excess if you have an accident in a hired or rental car. Typically, car rental companies charge about $20 to $30 per day per car hired for this type of insurance. If you choose not to take up this cover, the excess in damages to a rental vehicles could accumulate to $2,000 to $4,000. Credit card car rental insurances are designed to cover you for this excess, by paying a much lesser amount. For the cover to be valid, the person doing the claim needs provide the formal rental agreement and comply with the policy’s terms and conditions.

For example

ANZ Logo
ANZ Car Rental provides Gretel with cover up to $2,400 or less for an excess of $350.

This means that if she is ever in the event of a covered collision, Gretel only needs to pay the first $350 given that the damage doesn’t exceed $2,400.

If the excess exceeds $2,400, ANZ Car Rental would pay $2,400 less the excess of $350 to a total of $2,050. Gretel is required to pay the balance of any damage that exceed this amount.

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Pros and cons of credit card car rental insurances

Pros

  • Peace of mind - Feel comfortable when you’re driving on the road with a rental car.
  • Good value - Car rental insurance helps make hiring a car more affordable by reducing your excess if you have a covered accident.

Cons

  • Terms and conditions - There are an abundance of rules as to what can be defined as a ‘covered accident’ and there will be a maximum in place so you may not be fully covered.

Things to avoid about credit card rental insurance

Not asking your bank if in doubt

Ask your bank under what situation the policy will apply. For example:

  • Do you need to pay for the car cost or travel costs to the credit card in order for it to take effect?
  • Does it still take effect if you pay for the car using a standard waiver price or do they think you will take up any more excess reduction or insurance options that are available from the car company.Also, if you’re renting anything something that is not a normal car, like a regular hatchback or normal four-door sedan, you’ll want to see if the coverage still applies.
  • What does the company cover exactly?
  • Do they encapsulate theft or only damages?
  • Do they pay for just the extra cost that you need to pay?
  • Or is there any potential deductible cost paid out to the car rental organisation because of any loss or damage you cause to the vehicle?
Car rental sign

Frequently asked questions about credit card car rental insurance

Does the Commonwealth Bank Platinum Awards credit card offer rental car insurance?

Yes, you are covered up to $2,250 in excess payments.

Can my HSBC Platinum credit card cover insurance for car rental?

Yes, you are covered up to a limit of AUD $3,000 in excess payments.

What if I want to rent a car in Australia?

If you’re visiting Australia, confirm with your local credit card issuer and check if your card already has travel insurance perks that include car hire cover. That is a common feature of many Gold as well as Platinum cards that are also part of their International Travel Package for Insurance. There is sometimes a clause known as a Rental Vehicle Excess Cover that can usually give you between $2,000 and $5,000. It is a good idea to always take a look carefully at fine print or phone your bank directly to clearly mark out any irregularities or ambiguities.

It is always important to do your due diligence when comparing credit card offers, especially those with added extras such as Car Rental Insurance.

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6 Responses to Credit Card Car Hire Insurance Cover

  1. Default Gravatar
    Jenny | February 15, 2016

    Does the CUA Platinum MasterCard cover excess on campervan hire as provided for car hire and if so maximum amount covered?

    • Staff
      Jonathan | February 15, 2016

      Hi Jenny, thanks for your inquiry!

      This complimentary insurance policy covers rental vehicle excess insurance, covering you for reimbursement of any excess or deductible providing the following conditions are met:

      -You have taken comprehensive motor insurance against loss of or damage to the rental vehicle as part of the rental agreement;
      -Complied with all requirements of the rental agency under the rental agreement and the rental vehicle insurer; and
      -not violated any terms of the rental agreement of the rental vehicle

      I have sent the PDF of this insurance policy to your email for your further perusal.

      Cheers,

      Jonathan

  2. Default Gravatar
    max | December 8, 2015

    Hi, I cannot find any information confirming car rental insurance with the hsbc platinum card . Do you have any information on this?

    • Staff
      Sally | December 9, 2015

      Hi Max,

      Thanks for your question.

      You will be pleased to know that this card does indeed cover car rental insurance, but only up to a limit of AUD$3,000 in excess payments.

      I’ve emailed a copy of the insurance terms and conditions to you for your convenience.

      I hope this has helped.

      Thanks,

      Sally

  3. Default Gravatar
    Simone | May 29, 2015

    Hi,
    I’m wondering if my NAB Visa card entitles me to an excess reduction in my home state of Victoria for car hire?
    Simone

    • Staff
      Jonathan | June 1, 2015

      Hi Simone, thanks for your inquiry!

      To allow me to assist you further could you let us know which NAB Visa card you are using please? You may also like to contact NAB directly either via customer service team or local branch to resolve this inquiry.

      Cheers,

      Jonathan

Credit Cards Comparison

Rates last updated May 25th, 2016
Purchase rate (p.a.) Balance transfer rate (p.a.) Annual fee
St.George Vertigo Platinum
A platinum card with a balance transfer offer of 0% p.a. for 20 months and an introductory purchase offer of 0.99% p.a. for 4 months with a low annual fee.
0.99% p.a. for 4 months (reverts to 12.74% p.a.) 0% p.a. for 20 months $99 p.a. Go to site More info
American Express Essential Credit Card
Receive a $50 credit on eligible spend and get Smartphone screen insurance combined with a no annual fee for life card.
14.99% p.a. 0% p.a. for 12 months $0 p.a. Go to site More info
HSBC Platinum Credit Card
Receive a full annual fee refund and save $149 if you meet the $6,000 spend requirement. Enjoy a balance transfer offer and platinum card benefits such as complimentary insurances and concierge services.
19.99% p.a. 0% p.a. for 15 months $149 p.a. Go to site More info
ANZ Frequent Flyer Black
Earn up to 75,000 bonus Qantas Points when you spend $2,500 within the first three months and 1.5 points per $1 spent. Get complimentary airport lounge access, 24/7 concierge with $0 annual fee in the first year.
19.99% p.a. $0 p.a. annual fee for the first year ($425 p.a. thereafter) Go to site More info

* The credit card offers compared on this page are chosen from a range of credit cards CreditCardFinder.com.au has access to track details from and is not representative of all the products available in the market. Products are displayed in no particular order or ranking. The use of terms 'Best' and 'Top' are not product ratings and are subject to our disclaimer. You should consider seeking independent financial advice and consider your own personal financial circumstances when comparing cards.

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