INSURANCE AND SECURITY BONDS

Insurance Issues

(This is very important and often causes confusion with consumers, so we have tried to give an industry-wide overview of the subject as well stating our own arrangements - we hope that you will bear with us).

In discussing insurance issues, unlike other rental companies, we do not use acronyms like "CDW"; "LDW", "LIS"; "ER"; "WWI" and "PCDW" as these abbreviations serve only to confuse those who are not dealing with them every day.

Standard Australian car rental contracts require the Renter to assume full responsibility for any loss of, damage to, or damage caused by the rented vehicle during the rental period, irrespective of how such damage or loss occurred. The Renter is also responsible for any loss of rental opportunity whilst vehicles are being repaired.

Our rental contracts automatically provide our renters with the protection of our fleet insurance policy in respect of such loss or damage, provided that the Renter complies at all times with all conditions of rental. However this protection comes with an "insurance excess" component (the amount below which the insurance policy does not operate and therefore is the responsibility of the insured). As is customary within the car rental industry, this excess is much higher than is normally contained with a normal consumer's own comprehensive motor insurance policy.

Again, as is customary with other car rental companies, our customers can pay a premium on top of their normal rental costs to reduce their liability from the high "standard" excess to something more manageable.

Within the framework as outlined above, there are dramatic differences in the price and scope of the insurance excess reduction programs offered by different car rental companies. Indeed it could be a very expensive mistake to assume that all companies offer the same (or similar) cover.

Of course, no insurance arrangement ever offers "complete" protection; we are all aware that if the driver is charged with contravention of alcohol or drug laws, the insurance is invalidated. Other lesser known, but readily understood invalidation actions are, vehicle stolen whilst keys were not kept secure; premeditated dangerous acts such as "burn outs", "running a red light", excessive speed (more than 30Klm per hour above limit), attempted negotiation of flooded causeways, roads or bridges. Another invalidation action found in almost every insurance policy is abandonment of the vehicle.

In addition to the universal invalidation matters described above, there are other exclusions that are normal to the rental car industry, but not always contained in other insurance arrangements, these include:

	Vehicle being driven by an unauthorised driver or driven in an unauthorised area.
	Vehicle being driven on an unsealed/unmade road (excluding roads under repair or private property driveways).

When dealing with other car rental companies, be particularly careful to enquire whether the reduced liability that they are offering includes full protection for such matters as:

	Hail or Storm Damage
	Interior Damage
	Glass and Tyre Damage
	"Single Vehicle Accident" Damage
	Immersion in Water
	Damage caused whilst reversing

Even though cover on these matters is often excluded or adversely modified, very few companies give any definition to these terms; however a major company defines a "Single Vehicle Accident" as being any incident that does not involve any other moving and identified vehicle.

We do not restrict our protection in respect of any of these matters (indeed with our MaxiSafe cover we actually provide a NIL excess for windscreen and tyre damage), except for immersion in water other than where the vehicle is unattended (see s5 f of Conditions of Rental).

Your options with us are:
NOTE: Additional age excesses apply for 19-20yr drivers; 21-24yr drivers and 80+yr drivers (see table in Security Bond section)

Standard Insurance Excess

This is automatically included in all of our rental packages, reducing your liability from unlimited to $2,750 for "normal" vehicles and $3,750 for people movers and exotic vehicles.

Intermediate Insurance Excess

This is a low cost reduction from the standard excess to $1,500 for "normal" vehicles and $2,000 for people movers and exotic vehicles. It is especially designed for those customers who have arranged for a third party excess reduction through travel insurance or for Gold or Platinum credit card holders who wish to avail themselves of the special insurance arrangements inherent in those cards. The following is extracted from the MasterCard Terms & Conditions for Gold Card holders (similar wording for Visa & Amex).

"As part of the hiring arrangement you must take up all comprehensive motor insurance or waivers offered by the rental agency, whether discretionary or mandatory, against loss or damage to Rental Vehicle during the rental period. You must comply with all requirements of the rental agency under the hiring agreement and the insurer under such insurance."

MaxiSafe Insurance Excess

This is the package of choice for more than 96% of our customers and is widely regarded as the value benchmark for others operators to aspire to. MaxiSafe reduces your liability by 90% to $275 for "normal" vehicles and $375 for people movers or exotic vehicles. It also provides a bonus NIL excess for windscreen or tyre damage.

Travel Insurance Policies

Some people take out travel insurance to protect themselves whilst they are travelling, some of these policies include "Rental Car Insurance Excess Protection" (or similarly worded cover) - this is not applicable to all travel policies and people should be aware of the actual cover offered under such policies and consider whether the cover provided actually meets their needs.

There are also some Rental Vehicle Excess Reduction policies available on a "stand alone" basis (i.e., not having any other insurance component such as airfare or accommodation cancellation cover, lost baggage etc.) These seem to be about the same cost as, or slightly dearer than our MaxiSafe package.

Two things should be borne in mind:

The rental company can't claim on your policy, you will need to settle with them and then subsequently claim from your insurer. You will be out of pocket for the time between paying the rental company and settling your claim.

The cover is for Rental Car Insurance Excess costs and does not cover you for what you may owe the rental company for matters not covered by their insurance excess arrangements. Some rental companies do not extend any cover for "single vehicle accidents"; "interior damage"; "glass and tyre damage"; "damage whilst reversing" or "hail and storm damage". Under these circumstances (as well as the general exclusions already discussed) you would need to pay the rental company, but not be able to claim from your insurer. It is impossible for travel insurance or a 3rd party cover to provide better protection than is offered by the rental company - whatever flaws already exist in the rental company's cover will continue with the travel policy.

The travel insurance policy that we use ourselves when we go away is QBE's TourSafe; we have taken out an agency with QBE and have created a special link on our website offering a 20% discount on both Single Cover and Family Cover (this is from our commission). Please note that Single cover will protect all nominated drivers for Rental Car Excess liability and normally cover all hotel cancellation fees, whereas you will need to take out Family Cover for protection of more than one airfare.

QBE TourSafe 20% Discount

With us, you can control the amount of money that you spend and the risk that you take, by selecting the rental reduction package that most suits your needs, refer to the following table.

Insurance Excess Choices