Does car insurance cover rental cars?

At Budget Direct we can arrange a hire car (or reimburse you the reasonable cost of one) depending on your Car Insurance policy and the circumstances surrounding your damaged or stolen vehicle.

At Budget Direct, a hire car (also known as a rental car) that meets your needs is a vehicle that will reasonably fulfil your usual day to day mobility requirements.

However, a hire car may not:

• Be the same make and/or model
• Have the same motor and/or fuel type
• Offer the same features and/or prestige as your insured car.

Here's when Budget Direct Car Insurance covers hire car costs:

We will cover the:

• Daily cost for a hire car that meets your needs, or
• If we’re unable to arrange a hire car we will reimburse you up to $75 per day to fulfil your day-to-day mobility requirements.

We will not cover any additional costs for renting a hire car and this includes the cost of:

• Fuel
• Rental bond
• Insurance
• Excess if you damage the hire car

At Budget Direct, arranging a hire car can depend on whether your car’s been damaged or stolen.

1. You make a claim and we’ll confirm whether you’re eligible for a hire car. 

2. If we accept your claim, we'll arrange the hire car on your behalf until the car is repaired or your claim is paid (whichever one comes first). 

3. We'll notify you of the hire car collection time and place. 

4. You’ll collect the hire car. 

5. You show your driver's licence to our provider, agree to and sign the rental agreement. This includes paying any rental bond, insurance and any excess if you damage the hire car. Any hire car extras or upgrades are at your expense.

6. You return the hire car and pay our provider any additional costs such as fuel, extra kilometres, tolls and fines. We’ll pay for your daily hire car fees, as covered by your policy.

If we accept your car insurance claim for a no fault accident and we can't arrange a hire car for you, we can reimburse what it would cost you to get around on a day to day basis, up to $75 per day. 

We will pay for this benefit until either:

• The car is repaired
• Your claim is paid

If your car is still drivable, this benefit will only take effect from the date:

• The authorised repairs are due to start, or
• We assess the car to be a total loss.

1. You make a claim and we’ll confirm whether you’re eligible for a hire car. 

2. If we accept your claim for theft of the car, we’ll reimburse your daily rental fees from the date of theft until the first of the following happens:

   • Your car is recovered undamaged and returned to you
   • Your car is repaired
   • Your claim is paid
   • 14 days of hire have been used
   • You reach the maximum payable amount (as per the PDS)

3. We'll notify you of the hire car collection time and place.

4. You will need to show your driver's licence to our hire car provider, agree to read and sign the rental agreement. This includes paying any rental bond, insurance and any excess if you damage the hire car. Any hire car extras or upgrades are at your expense.  

5. You return the hire car and pay our hire car provider any additional costs such as fuel, extra kilometres, tolls and fines. We’ll pay for your daily rental fees, as covered by your policy.

If you have Comprehensive Car Insurance (with the optional benefit of accident hire car) and are the at fault driver in a car accident, then we can help. If we accept your at fault claim, we’ll arrange and pay the daily cost for a hire car that meets your needs for up to 14 days.

When you hire a car, you’re liable for any loss or damage to the car and third party property. Compulsory Third Party (CTP) insurance is covered as part of the hire car's vehicle registration.

Before you sign a rental car agreement make sure you understand all of the terms and conditions including: 

• The excess amount if the car is damaged, and in what circumstances you must pay it.
• The total cost of the hire car, including rental costs, basic and excess insurance cover, and all extra fees.

It's important that you take care of the hire car while it's in your possession. This includes following safe driving practices such as wearing a seatbelt and driving according to road rules and conditions.

Make sure you familiarise yourself with the car rental company’s conditions before driving off. This includes paying a rental bond, insurance and any excess if you damage the hire car.

When you pick up the hire car, thoroughly inspect it and make sure any pre-existing damage is noted on the contract.

And when you return the hire car, thoroughly inspect it again, bring any damage to the attention of the hire car company and note their response.

Make sure you take photos of the car both when you pick it up and return it to the rental car company.

Whether you have a Comprehensive Car Insurance policy or cover for Third Party Property, Fire and Theft, a hire car can be an important benefit to receive from your insurer.

Even in an at fault accident, the  optional benefit of an accident hire car can be very useful.

With Budget Direct Car Insurance, you can make a claim online using our Car Claims Helper and/or by logging into your online policy manager.

Your level of car insurance cover and the outcome of the claim will determine whether you are eligible for a hire car following an accident.