Excess Reduction provides greater peace of mind. In the event of an accident it reduces your financial liability to a reduced excess (with the exception of Overhead, Water and Underbody damage). Excess Reduction is optional and can be selected at the time of rental. For further information please refer to the Budget Terms and Conditions - Loss Damage Waiver, Damage & Loss of Property.
From the time your rental starts 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, subject to the comments below.
The renter's responsibility also includes damage caused by acts of nature such as hailstorms or falling trees.
If you are involved in an accident where you are not at fault, and we reasonably believe that a third party or a third party’s insurer will pay for any loss or damage to the vehicle, then we will refund you any excess you pay.
With Excess Reduction Budget Renters' financial liability is limited.
Provided you comply with the terms of the Budget rental agreement, and provided you accept and pay for the Loss Damage Waiver option on the rental document (or if it is included in your rate), 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, except in relation to three key exemption events for which the renter must take total financial responsibility. These events are detailed under the Exempted Events heading under the answer for Question 'What are the exclusions to Excess Reduction?'.
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.
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, except in relation to the exempted events (see Exempted Events under the answer for Question 'What are the exclusions to Excess Reduction?'), have a liability greater than the reduced excess even if the damage was caused by your mistake.
There are three key exempted events which Excess Reduction will not cover and you must take total financial responsibility. These events are detailed under the Exempted Events heading under the answer for Question 'What are the exclusions to Excess Reduction?'.
There are three key 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. You are also not covered if you breach the rental agreement.
1. Overhead damage
Overhead damage means damage (excluding hail damage) to the Vehicle above the top of the door seal or the top of the front and back windscreens, or damage to third party property, caused by the Vehicle coming into contact with any thing overhanging or obstructing its path, objects being placed on the roof of the Vehicle, or You or any person standing or sitting on the roof of the Vehicle.
2. Water damage
Water damage to the Vehicle caused by total or partial inundation or immersion of the Vehicle in water or exposure of the Vehicle to salt water
(including, without limitation, damage which occurs if You drive the Vehicle through floods, creeks or rivers).
3. Underbody damage
Underbody damage means damage to the Vehicle during the Rental Period caused by the Vehicle coming into contact with any thing below the bottom of the door seal and the bottom of the front and rear bumper bars where Budget considers, acting reasonably, that the driver of the Vehicle is reasonably at fault for that damage.