You’re at the rental desk, and the agent has just dropped the $8,000 liability bombshell. They present you with a choice: pay an extra $30-$70 per day for their “Super” waiver, or risk financial disaster.
Knowing how to avoid car rental insurance fees (or, more accurately, the waiver fees) comes down to preparation. The expensive waiver sold at the counter is just one of four options you have. Let’s break them down.
Option 1: The Rental Desk Waiver (The “Convenience” Option)
This is the “Super CDW” or “Zero Excess” product the agent is pushing.
- Pro: It’s fast and convenient. It often reduces your security deposit hold from $8,000 to just a few hundred dollars.
- Con: It is by far the most expensive option, often costing more than the rental itself. You are paying a massive premium for convenience.
Option 2: Complimentary Credit Card Insurance (The “Free” Option)
Many premium credit cards offer “free” travel insurance that includes rental excess cover.
- Pro: It’s included with your annual card fee.
- Con: This option is riddled with traps. First, it’s a “pay and claim back” model, so you must have a high-limit credit card to pay the full $8,000 excess upfront, then wait weeks for reimbursement. Second, as our investigation found, many cards have coverage limits (e.g., $5,500) that are lower than the rental company’s excess, leaving you exposed. Finally, many exclude common items like windscreens and tires.
Option 3: Standalone Excess Insurance (The “Savvy” Option)
This is a dedicated policy you buy before you travel from a specialist provider like Carhireexcess.com.au, RentalCover, or Prosura.
- Pro: This is the cheapest and most comprehensive solution. For $8-$15 a day, you get up to $10,000 in cover, which explicitly includes the items rental companies exclude, like windscreens, tires, and underbody.
- Con: Like credit cards, this is a “pay and claim back” model. You must have a credit card with a high enough limit (e.g., $8,000) for the rental company to place a security hold. If you have an accident, you pay the rental company and claim the full amount back from your standalone insurer.
Option 4: Risking It (The “Brave” Option)
You can simply decline all cover and risk the $8,000. This is not recommended, as a simple, not-at-fault scrape in a car park could cost you thousands.
For the prepared and cost-conscious traveller, a standalone policy (Option 3) is the clear winner. It gives you comprehensive protection for a fraction of the cost.
Why do rental companies push their own waivers so hard when better alternatives exist? Because it’s their primary profit centre. They have built an entire business model around making you feel like Option 1 is the only safe choice.
To see the full cost-benefit analysis and read our full investigation into this high-pressure sales tactic, [click here for The $8,000 Handshake: An Investigation into Australia’s Car Rental Insurance Rort.
