Renting wheels overseas, whether a scooter in Southeast Asia or a sedan in the USA, is one of the great pleasures of travel. It’s also one of the most common sources of unpleasant insurance surprises.
Motorbike and Scooter Cover
Most standard Australian travel insurance policies exclude injuries sustained while riding a motorbike or scooter, unless you hold a valid motorcycle licence in your home country and are wearing a helmet. The logic is simple: motorbike injuries are far more severe and costly than car accidents, and many travellers rent scooters with no motorcycle experience or licence. Always check your policy’s exact conditions before renting.
Rental Car Cover
Rental car situations involve multiple overlapping types of insurance:
- Rental company CDW/excess waiver: The daily “damage waiver” that reduces your excess in the event of damage to the rental car. Can cost $20–$50/day.
- Travel insurance rental car excess cover: Many comprehensive travel insurance policies reimburse the excess you pay to a rental company after an accident. Limits vary, typically AUD $3,000–$10,000.
- Third-party liability: Covers damage you cause to other vehicles and property.
Common Exclusions for Rental Car Cover
- Driving on unsealed roads or off-road
- Single vehicle accidents (varies by insurer)
- Driving under the influence
- Commercial vehicle hire (trucks, vans)
- Exotic or luxury vehicles
- Motorbikes and quad bikes (treated separately)
Practical Tips
- Read your rental agreement carefully, understand what excess you’re liable for
- Photograph the rental vehicle thoroughly before driving away
- Check whether your Australian credit card includes rental car excess cover
- Confirm your travel insurance rental car benefit amount and exclusions before relying on it
