Basic insurance is included in the published car hire rates, however in the event of damage to the hire car each provider has a damage excess fee. This fee is the maximum amount the car rental provider will charge you if there is damage to their vehicle. Costs beyond the excess damage fee threshold are covered by the provider.
The excess fee varies between car hire providers and can be viewed in the “Important Information” box during the booking process or the car rental provider’s Terms and Conditions.
Excess reduction is not compulsory in Australia, rather it is an optional extra offered to you when the vehicle is collected. If there is damage to the vehicle, the car rental provider will charge the excess according to what is outlined in the Rental Agreement. Your personal insurance circumstance is not taken into account until you make a claim with them.