Fleet - Insurance & Excess Reduction - Budget Rent a Car

Fleet - Insurance & Excess Reduction - Budget Rent a Car
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Insurance & Excess Reduction

Budget offers a range of insurance and excess reduction options.

They are however optional but can help provide peace of mind. Read more about these options below -



What is Excess Reduction?

A. Excess Reduction provides peace of mind. In the event of an accident it reduces your financial liability to a small, manageable amount.

  • Renter's current responsibility
  • With Excess Reduction Budget Renters' financial liability is limited
  • Excess Reduction
  • Excess Reduction is optional
  • Exempted events - exclusions to coverage
    • Overhead damage
    • Water damage
    • Underbody damage


Can I take out Excess Reduction at the time of rental?

A. Yes. If you have declined Excess Reduction at the time of your reservation, and you change your mind, you are able to take out Excess Reduction at the time of rental. Please notify the rental agent when you pick up the vehicle.

Won't my credit card cover it?

A. Some credit card companies offer protection if you present their card at the time of rental and use the same card to pay for your rental at the time of return. Renters should examine closely the terms of this coverage as the protection is often supplemental and certain limitations or restrictions may apply.

Are Excess Reduction coverage and rates always the same?

A. Excess Reduction coverage and rates will vary depending on the type of vehicle rented and the age of the driver renting the vehicle.

Renter's current responsibility

A. From the time you (or your nominated driver in the rental agreement) take charge of a rental vehicle, you are financially responsible for any loss or damage to the vehicle or any loss or damage to third party property as a result of using the vehicle.

The renter's responsibility also includes damage caused by acts of nature such as hailstorms or falling trees.

With Excess Reduction Budget Renters' financial liability is limited

Provided you comply with the terms of the Budget rental agreement your financial liability for loss and/or damage to either the Budget vehicle and/or third party property is limited to a pre-determined amount. There are only three exemption events for which the renter must take total financial responsibility. These events are detailed under the Exempted Events heading below.
The liability (called an excess) varies depending on the category of vehicle and the age of the driver. The standard excess is a substantial amount but is still a small proportion of the value of the Budget vehicle. Your standard excess amount will be advised to you at the time of rental and will be shown on your rental agreement.
Excess Reduction
Provided you comply with the terms of the Budget rental agreement, Excess Reduction ensures that for any particular loss or damage to the Budget vehicle or third party property you will not have a liability greater than the reduced excess even if the damage was caused by your mistake. This is genuine no fault protection.
There are three exempted events which Excess Reduction will not cover and you must take total financial responsibility. These events are detailed under the Exempted Events heading below.

Excess Reduction is optional

A. Excess Reduction is not an insurance but optional coverage which for a small fee reduces your standard excess liability and offers real value for money.

Longer term renters really benefit

For longer term renters, for Excess Reduction; is especially advantageous because the longer the rental period the lower the daily cost.

With lesser quality coverage plans the cost of reducing the excess can be prohibitive which unfairly exposes longer term renters.

Exempted Events - exclusions to coverage

A. There are three categories of damage and/or loss for which the renter must take full financial responsibility. Excess Reduction; does not cover these events and neither does the standard excess. For attentive, careful drivers using the Budget vehicle sensibly and legally these events are most unlikely to occur.


1. Overhead damage
Overhead damage means any damage above the top of the door seal the top of the front and back windscreens. Extra care needs to be taken when driving trucks and some buses due to height restrictions.

Boom gates in car parks and at hotels can seriously damage cars and drivers unused to the height of people-movers should take extra care.


2. Water damage
Budget vehicles are not to be driven through floods, creeks or rivers or used where water damage is likely to occur. Driving through any flood or water-course can be extremely dangerous to you personally and will almost always result in substantial damage to the vehicle. Convertibles should not be left with the top down.


3. Underbody damage
Underbody damage occurring to exhaust systems, suspension and body/chassis components can be caused by carelessly driving over gutters or kerbs or travelling along poor quality roads at excessive speed. No Budget vehicle may be driven on off-road areas such as paddocks, fields, tracks, trails or roads above the snowline.

Irrespective of how overhead, water or underbody damage or loss is caused, it is the renter's full financial responsibility.