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Rentals Bonds & Liability Reduction Explained

All camper and motohome rental prices include a standard insurance component that, in the event of an incident, covers damage to the vehicle and/or the property of a Third Party.

However, as with all forms of vehicle insurance, when a claim is lodged, there is an insurance excess (aka deductible) that is payable by the hirer. The insurance excess applies to each or any incident and is not for the length of rental.

The excess amount varies between rental companies and there may also be differences between different vehicle types. The usual practice is for the rental company to collect a fully refundable bond for the amount of the excess liability at the point of vehicle pick-up.

Payment of the bond is only accepted via credit card and the amount will be debited to the credit card account immediately. It is important that your credit card has sufficient funds available to cover the bond amount. The bond is refundable when the vehicle has been returned without damage and fully fuelled.

An administration fee equal to the merchant surcharge will usually apply.

Newer, more expensive vehicles carry a higher excess liability (typically around $7500 AUD) with a sliding scale down to the older, cheaper vehicles (typically around $2500 AUD).

To lessen the driver's liability when faced with an insurance excess due to vehicle damage, rental companies offer Liability Reduction Options where, in return for a reduction in the liability, the daily hire rate will be increased. Different companies may use different wording or terminology to outline their details, but in all cases, the bottom line is that by paying a higher daily rate the hirer can minimise or remove the liability.

The Liability Reduction Options will vary from company to company but typically involve two options where one (less expensive) is for the excess to be reduced to around 50% of the full amount and the other (more expensive) is for the excess to be reduced to nil, or to a minimal amount.

When getting your quote you will be asked if you want to opt for the Liability Reduction Options available. It's your choice if you want to include them or not.