In Australia, when you’re looking for a rental car, it’s crucial to understand the ins and outs of insurance coverage. Typically, the base price of a car rental already includes basic protection known as a collision damage waiver (CDW) or loss damage waiver (LDW). However, keep in mind that these policies come with a deductible or excess that you’re responsible for if any damage or loss occurs. Picture this: you cause $5,000 in damages, but you’re only on the hook for $4,000.

Now, let’s fast forward to the moment you grab those rental car keys from the counter. The rental company employee kindly reminds you of the lofty deductible, which can skyrocket up to a staggering $4,000 or even higher. As if that’s not enough, they then propose an additional insurance option to shrink that deductible down to a more manageable amount, usually around $500 or less. But hold your horses, my frugal friend, because this extra coverage can put a sizable dent in your wallet, often quoting between $25 and $30 per day. Ouch! In some cases, it can gobble up nearly half of your car rental cost.

There’s a solution to this dilemma. Enter the world of credit cards, where some generous souls offer complimentary car rental excess insurance. One such shiny gem is the American Express Platinum Card, but beware—it demands a hefty annual fee of around $1400. However, worry not, for the quest for a more affordable alternative has led us to the Qantas Premier Everyday Card. With a mere $49 annual fee, it offers coverage for a $500 excess on domestic claims up to $3,000, or $4,000 on international claims. Again, picture this: you cause $3,000 or more in damages, but you’re only on the hook for $500.

By wielding the mighty Qantas Premier Everyday Card to pay for your rental car, you can boldly reject the rental company’s extravagant excess offerings and rely on the credit card’s insurance instead. But heed my advice: carefully pore over the terms and conditions of the credit card’s rental car coverage. Unearth any sneaky exclusions, limitations, or eligibility requirements lurking in the fine print. Remember, coverage particulars may vary depending on the country and type of rental vehicle. When in doubt, get in touch with the credit card issuer directly to confirm the nitty-gritty details before revving that rental car’s engine.

Stay safe out there, and may your journeys be filled with smooth roads and hassle-free adventures.

Disclaimer: The content of this page is not intended to constitute legal or financial advice. Kerry Whitfield is not a licensed financial advisor. The opinions expressed on this page, along with the topics discussed and ideas presented, are solely the views of Kerry Whitfield and are provided for entertainment purposes only. The information presented should not be interpreted as financial or legal advice. It is always recommended to conduct your own research and seek professional advice before making any financial decisions.