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Ultimate Geek
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Topic # 133492 23-Oct-2013 22:00
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We're heading to Oz in a couple of weeks and need to hire a car. When we booked our flights we took out the AirNZ travel insurance options (which is through QBE). They mentioned it covers up to $2000 excess for any rental car claim. Does that mean we don't need to take out the rental cars insurance option? Therefore doubling up?


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  Reply # 920699 23-Oct-2013 22:07
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It means that they will pay the excess up to 2000, you need car insurance still but maybe a more basic (maybe free) package that has an excess of $2000

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  Reply # 920711 23-Oct-2013 22:18
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Does the condition require you to take out the max excess reduction for it to apply?




Swype on iOS is detrimental to accurate typing. Apologies in advance.


 
 
 
 


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  Reply # 920756 23-Oct-2013 23:51
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joker97: Does the condition require you to take out the max excess reduction for it to apply?


very good point!

it looks like you possibly don't need to though, assuming this is what you purchased: http://www.airnewzealand.co.nz/top-reasons-to-buy-travel-insurance


 

5. Rental Vehicle Cover

 

Even if you incur minor damage to your rental vehicle you could be stung with a large excess with the rental vehicle company. Or you can choose to reduce the excess with a daily amount, but that's money you should be spending on your holiday.

 

With our travel insurance policy there is cover for the Rental Vehicle excess for a minimum of $3000, meaning you don't have to accept the reduced excess option at the rental counter.

 





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  Reply # 920783 24-Oct-2013 08:06
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It depends. If the insurance covers up to $2000, then you will probably want to take an option that makes your excess with the rental company $2000 or less. If the standard excess is still, say, $3500, you'll either have to wear the $1500 difference, or pay an excess reduction fee. Your call. It simply means your insurance will pay out up to $2000 towards the excess if you damage the rental vehicle.

joker97: Does the condition require you to take out the max excess reduction for it to apply?


I'd really suggest avoiding any travel insurance that puts these kind of conditions on...





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  Reply # 920797 24-Oct-2013 08:51
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Regs:
joker97: Does the condition require you to take out the max excess reduction for it to apply?


very good point!

it looks like you possibly don't need to though, assuming this is what you purchased: http://www.airnewzealand.co.nz/top-reasons-to-buy-travel-insurance


5. Rental Vehicle Cover Even if you incur minor damage to your rental vehicle you could be stung with a large excess with the rental vehicle company. Or you can choose to reduce the excess with a daily amount, but that's money you should be spending on your holiday. With our travel insurance policy there is cover for the Rental Vehicle excess for a minimum of $3000, meaning you don't have to accept the reduced excess option at the rental counter.


That sounds like we're totally covered by the travel insurance we included with our AirNZ tickets to me?

I'm also querying whether we need to take insurance with the rental company for our travel insurance to apply?

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  Reply # 920799 24-Oct-2013 08:56
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I don't think you have any choice with the rental company, it will be insured. You just do not need to take out the excess reduction policy they will offer you (which is usually another $x per day on top of your rental).

If you have a prang in the rental, claim the $2000 from AirNZ travel insurance to give to the rental company as the excess on their insurance.

Just check though, what is the rental company's standard excess. If, as mentioned above, it is more than $2000, then you will be up for the difference if you have an accident.



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  Reply # 920813 24-Oct-2013 09:10
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I just simulated a booking now through Apex Car Rentals and the car included:
1 x $500 Excess

 

"Premium Cover reduces your excess (deductible) from $2,750 to $500. This means that in the event that the rental car is damaged, you are liable for the first $500 of any damage, irregardless of whether you are at fault or not."

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  Reply # 920818 24-Oct-2013 09:28
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There is no "standard" rule with travel insurance. You need to look at the specific wording for the policy (which in the case of the Air NZ one is listed above).

In the past many travel insurance policies covered the full cost of any excess for car rentals. This seems to no longer be the case - many now require you to take out all CDW / excess reduction policies that are offered to you. If you don't, you're not going to be covered for the excess and will be required to pay this should you have an accident.

It's quite a cunning policy catch - typically speaking the CDW / excess reduction policies bring the excess down to a few hundred dollars. If you've got a $200 excess on your travel insurance policy and a $400 excess with the rental company the insurance company does very well out of the deal.

It's worth noting that residents from many countries you don't need rental car insurance as regular vehicle insurance covers driving rental cars, the US is one big example of this.
 

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  Reply # 920820 24-Oct-2013 09:31
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Inphinity:

I'd really suggest avoiding any travel insurance that puts these kind of conditions on...




This is becoming an extremely common policy condition on many newer policies. It's certainly something to be aware of when looking at travel insurance if you'll be hiring rental cars for long periods of time.


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  Reply # 920839 24-Oct-2013 10:07
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sbiddle: 

This is becoming an extremely common policy condition on many newer policies. It's certainly something to be aware of when looking at travel insurance if you'll be hiring rental cars for long periods of time.



I've used four different travel insurers (SCTI, AirNZ, TWTI, AA) in the past 12 months and none have had this condition in their policy wording - which ones do?

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  Reply # 920867 24-Oct-2013 10:42
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Inphinity:
sbiddle: 

This is becoming an extremely common policy condition on many newer policies. It's certainly something to be aware of when looking at travel insurance if you'll be hiring rental cars for long periods of time.



I've used four different travel insurers (SCTI, AirNZ, TWTI, AA) in the past 12 months and none have had this condition in their policy wording - which ones do?


you will probably find that some bundled 'free' insurance with credit cards (gold/platinum/etc) will have this in it.  It might be cheaper to buy another policy for $200 than to have to pay the excess reduction, or stump up with $3500 in an incident.




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  Reply # 920870 24-Oct-2013 10:49
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Inphinity:
sbiddle: 

This is becoming an extremely common policy condition on many newer policies. It's certainly something to be aware of when looking at travel insurance if you'll be hiring rental cars for long periods of time.



I've used four different travel insurers (SCTI, AirNZ, TWTI, AA) in the past 12 months and none have had this condition in their policy wording - which ones do?


A lot of AIG policies for a start - this includes AIG policies and are resold by a number of other parties. AIG is also the cover used by ANZ for their credit card policies.


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