Deductible & coverage
What is rental car excess (deductible) in Australia?
Short answer
It's the most you'd pay if your rental car is damaged or stolen. Australians call it the excess. With standard cover it's $5,500 AUD for economy and compact cars, intermediate hatchbacks and sedans; $6,600 AUD for SUVs, full-size and electric cars, utes and people movers (est. $3,850 and est. $4,600). Zero deductible cover takes it to zero on every car except the 12-seater minibus, which comes with standard cover only. With zero deductible cover, windshield and tire damage is included too.
Last checked Oct 16, 2026By Brett Gould
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Do I need an IDP?What's the deductible?How do I contact you?Sydney, Jan 4 – Jan 12, automatic, I'm 24Cairns, Dec 20 – Jan 3, an SUV, zero deductible
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The practical details
- A standard rate comes with a set deductible: $5,500 AUD or $6,600 AUD, depending on the car. That's a ceiling on your liability, not a charge: if you return the car undamaged, you pay nothing toward it.
- You can lower that ceiling. Zero deductible cover takes it to zero on every car except the 12-seater minibus, which comes with standard cover only.
- Covered damage includes a collision with an animal on a sealed road. Damage to other people's property and injuries to others work differently: what's covered for other people.
- The deductible is what your security deposit (bond) is reserved against - so a lower deductible also means a smaller amount at risk on your card.
- The exact deductible for your car, and the price to reduce it, are shown on your booking before you pay - you choose the level of cover you're comfortable with.
Common pitfalls
- Thinking the deductible is charged up front. It isn't - it's only ever payable if the car is damaged or stolen.
- Mixing up the deductible with the security bond: the bond is a temporary hold, the deductible is the most you'd pay if the car is damaged or stolen.
- Assuming your credit card or travel insurance covers it: some do and some don't, so check the terms before you travel.
Our recommendation
- Decide your comfort level: keep the standard deductible for the lowest price, or reduce it for peace of mind.
- If you want zero worry, take zero deductible cover.
- Compare the daily cost of reducing the deductible against the amount at risk; on longer trips the top tier often makes sense.
Related questions
CoverDo I need extra insurance when renting a car in Australia?No, you don't need to buy extra insurance to drive away: every rental in Australia includes damage and theft cover.Deposit & bondHow much is the rental car deposit (bond) in Australia?$1,000 AUD (est. $700) with standard cover.Licenses & IDPDo you need an International Driving Permit to rent a car in Australia?Usually not. A full US, Canadian or UK driver's license in English is accepted on its own to rent a car in Australia.One-way rentalsOne-way car rental in AustraliaYes, on some routes. In our live check on October 21, one-ways were offered between Sydney, Melbourne, Brisbane and Cairns, from Adelaide to Melbourne,...Cover, explainedZero deductible car rental in Australia
Quick answers
Is "excess" the same as a deductible?
Yes. Australia, New Zealand, the UK and Ireland say excess; the US and Canada say deductible. Your rental agreement in Australia will say excess, and the amount is the same.
Is the deductible the same as the security bond?
No. The deductible is the most you'd pay if the car is damaged or stolen. The bond is a temporary hold: with standard cover, $1,000 AUD (est. $700) is held on a credit card in the main driver's name and released after you return the car. With zero deductible cover there's no $1,000 AUD (est. $700) bond, just a $1 AUD check on the same card (tolls and fines are billed to that card later).
How do I lower my deductible?
Choose zero deductible cover when you book. It takes the deductible to zero on every car except the 12-seater minibus, which comes with standard cover only, and you'll see its price before you pay.
Does my credit card or travel insurance cover it?
Some do and some don't, and terms vary. Check with your card issuer or insurer before you travel.
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