LUX Rent-a-Car Insurance Explained
LUX cars are insured through http://www.insuret.com.au/ rental car insurance with with up to $40 Million legal liability cover for at fault claims. Our policy has a $5,000 excess for any claim.
In Australia, insurance for rental cars is very difficult to find, and consequently very expensive.
As a business we have an option where we could go the default route and have a high excess and a low rate, or low excess, and a really high rental rate.
The truth is, neither option was very appealing…
Fortunately if we stick with the standard $5,000 (high) excess to keep the rate down, there are still a couple of reasonable options available to you:
LUX recommends the renter acquire Rental Excess Insurance from a third party, such as:
(With rates starting from about $12 per day - this is substantially cheaper than the in-house excess reduction cover offered by the Major players.)
Or you could rely on your travel insurance https://www.1cover.com.au/ to cover this excess.
Now while the second option can be cheaper, remember you are getting what you are paying for, and you might not be covered for any extra charges the Insurance Company may levy (E.g. Panel damage to the top of the vehicle.)
In Australia if you operate a motor vehicle under the influence of drugs or return an alcohol reading that exceeds the legal limit, you are NOT Insured. Full stop.
Even if, in the circumstances, you would NOT normally be considered the at fault driver, if you return a positive reading, you are automatically at fault, and NOT Covered by Insurance. As such you will be held 100% liable for any damages.
So if you think there is even a slight chance you might be drinking, please forgo renting, and call a taxi instead.
Again, if you operate the vehicle in a reckless manner, such that the police would charge you with reckless driving, you are NOT Insured.
Likewise any form of racing, or taking the vehicle off road, will result in you NOT being Covered by Insurance.
In fact any activity, where there is considered to be a reasonable chance the car will be damaged, VOIDS your Insurance.
The important point here, is Cars are NOT Toys, and if you treat them as such, the Insurance Company will hold you 100% liable for any damages.