Renting a car is a very popular way to travel in Australia, but some important factors need to be considered before renting a car. The most important thing is car rental insurance. Buying the right insurance can make you feel more at ease when driving. Therefore, this article will discuss what insurance should be purchased for renting a car in Australia.

Part I: Compulsory liability insurance

Australian law stipulates that every car must have compulsory liability insurance, that is, third party insurance. This kind of insurance covers third-party casualties and property losses in car accidents, but does not include your own vehicles. Therefore, compulsory liability insurance is the insurance that every renter must buy.

Part II: Compensation Exemption Insurance (CDW/LDW)

Collision damage exemption/loss damage exemption can exempt the vehicle from liability for compensation during the lease period. If you have an accident or are stolen, you only need to pay the deductible and the car rental company will pay the rest for you. The deductible varies with the car rental company and model, usually ranging from a few hundred to a thousand Australian dollars. It should be noted that this insurance may not cover damage to tires, glass, underbody and cars. Therefore, when purchasing compensation exemption insurance, we should clearly understand the prohibited items and free scope.

Part III: Top Insurance (THW)

Top-up insurance is optional and can provide higher protection for tenants. The CDW/LDW insurance usually provided by car rental companies has a deductible, that is, when the car is damaged, a certain amount of deductible will be automatically deducted from your credit card. However, if you want to get rid of this deductible, you can buy top insurance, so you don't have to pay any fees when the car is damaged.

conclusion

Renting a car in Australia requires appropriate insurance. Compulsory liability insurance and compensation exemption insurance must be purchased, and the top insurance is selected according to personal needs. When buying insurance, you need to study the policy carefully to understand the insurance terms and the scope of deductible. Only by accurately understanding the coverage of various insurances and purchasing according to individual needs can the safety of vehicles and personnel be ensured more effectively.