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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 an insurance claim is lodged, there is an Excess (aka
deductible) that is payable by the hirer (ie.. the driver). In
the case of campervans, the Excess amount is high due to the unique
nature of the vehicles.
The Excess amount
for which the driver is liable varies between rental companies and there are also differences between different vehicle
types (eg a 2WD camper often carries a lower Excess than a 4WD
off-road camper).
The Excess amount is
typically around AU$7,500, but as indicated above there may be
considerable variations between different rental companies.
The usual practice
is for the rental company to collect a payment (aka bond) for the
amount of the Excess liability at the time of entering into the
rental contract. Payment is only accepted by 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 Excess amount. An administration fee equal to the merchant
surcharge will usually apply. The Excess applies to
each or any incident and is not for the length of rental.
To lessen the driver's liability when faced with an insurance claim,
most rental
companies offer Excess
Reduction Options. 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 Excess
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
Excess Reduction Options available from that rental company. It's
your choice if you want to include that or not. |
