What Is Car Rental Excess in Australia and How Much Does It Cost?
October 28th 2026
By Jean Genevieve
Car rental excess in Australia is the most you pay if your hire car is damaged or stolen. Standard amounts run from $5,900 to $6,900, and you can cut that to $0 at the counter or for far less with standalone excess insurance.
Planning to rent a car in Australia? Find the excess line before you pay. A small scrape can leave you facing a bill of up to $6,000.
What is car rental excess in Australia and how much is it?
It is the maximum you owe toward damage or theft of the hire car. CHOICE found standard excess of $5,900 to $6,000 at major suppliers, and as much as $6,900.
It works like a car rental deductible, only far bigger. A collision damage waiver limits what you owe to the excess but doesn't remove it. Luxury cars, 4WDs and younger drivers often face a higher figure.
Not at fault? Some suppliers still charge the full excess first and refund the difference once repairs are costed. Collect the other driver's details and an accident report on the day.
Is car hire excess insurance cheaper than the counter waiver?
Yes. In CHOICE's Sydney Airport quotes, standalone cover cost less than the counter waiver for both 1 day and 7 day hires.
Option | Daily cost | Cost for 7 days | Watch out for |
|---|---|---|---|
No cover | $0 | $0 | Full excess of $5,900 to $6,900 |
Counter waiver | $46 to $74 | $322 to $518 | Tyres and windscreen are often left out |
Standalone excess insurance | $10 to $22 | $70 to $154 | You pay first, then claim |
Domestic travel insurance | $14 to $25 | $98 to $175 | Per person, caps from $6,000 |
Our calculation from those figures: a week at the counter costs $168 to $448 more than standalone cover. Quotes change, so check current prices.
There is a catch. Standalone and travel policies reimburse you. They don't pay the supplier at pickup, so you cover the excess first and claim later with your receipt, repair invoice and accident report.
Call this the Excess Cash Gap: the card limit you need for the excess plus the security deposit before any claim pays out. A $5,000 limit against a $6,000 excess is a gap. Some cards add credit card cover on international trips, though CHOICE says it usually skips domestic hire.
What does car hire excess insurance not cover?
Windscreen, tyre, underbody and roof damage are the usual gaps (CHOICE, 2025). Read the Product Disclosure Statement (PDS) for each item.
Breaching your rental agreement can make you liable for the full repair bill plus administration and towing fees. Common breaches are unsealed roads, an unauthorised driver, the wrong fuel and broken road rules, so learn the Australian driving rules first.
Collecting a car rental at Perth Airport? In Western Australia, driving outside town limits between dusk and dawn is a common breach.
Picking up a car rental at Sunshine Coast Airport? Photograph all four wheels and the windscreen before you leave.
What should you check before you drive away?
Ask for the exact excess and any administration fee in writing.
Photograph every panel, tyre, the windscreen and the roof. Repeat after return, because pre rental and post rental photographs are your proof in a dispute.
Add every driver to the booking.
Keep the repair invoice. CHOICE reports some suppliers charge the maximum excess without a repair quote, which goes against Australian Consumer Law guidelines. Ask your card issuer about a chargeback if that happens.
Ready to book a hire car with the excess in plain view?
Car rental excess in Australia is easier to handle when you know the number before pickup. Confirm the excess for your chosen car, then book affordable car rentals for your trip with FinalRentals, which works in more than 60 countries.
About the Author
Jean Genevieve is a travel and car rental content specialist at FinalRentals, creating practical travel content that showcases partner locations worldwide. Her work focuses on helping international travellers understand rental requirements, driving considerations, road conditions, insurance and self drive planning before they travel.
