A Quick Guide To Motorhome Insurance Options In Australia & New Zealand. Renting a Motorhome, Campervan, or another vehicle in Australia is an important decision. Accidents can happen to even the most careful of us. 

Finding the right Insurance for your motorhome cannot be very clear. While comprehensive Insurance can be a great option, it can be expensive and difficult to afford. 

This article will provide background information and tips on various vehicle insurance options. We’ll be focusing on the specifics of what they cover.

Standard Insurance

Standard Insurance is compulsory third-party Insurance. It is mandatory third-party Insurance. It covers injuries to bodily persons if you are at fault for an accident. 

However, it doesn’t cover vehicle damage, so you will have to cover the repairs. Your responsibility for repairing the damaged vehicle(s) will be taken care of.

How does it all work?

When you make your booking, the option to not take the Insurance offered by the rental agency is available. You will only have to pay for the vehicle’s hire in this situation. 

The rental agency will require a deposit. The rental agency will require you to make a deposit. 

This deposit will be deducted from your bank account (via your credit card) and credited to your account at the end of your trip, provided it passes inspection. 

The type of vehicle and the rental agency will affect the deposit amount.

In case of an accident

Let’s assume you’re in an accident and are not responsible.

The rental motorhome will be repaired by the driver’s insurance company responsible for the accident. 

Photographs of any accident should be taken, along with the other driver’s details and vehicle registration. A blank report can be found in the vehicle.

Assuming an accident occurs, you are held liable.

You’ll have to cover all repair costs associated with the rental vehicle up to the amount you paid for it. 

If the damages exceed 1000 AUD and your deposit is 2500 AUD, you’ll get 1500 AUD back. The 2500 AUD difference will be charged if the damage exceeds 5000 AUD.

You might be responsible for all damages, depending on the conditions of your motorhome rental agency. 

If the damage exceeds the deposit, Insurance will not cover it, and you will have the full amount to pay.

You will be responsible for any damages caused by the vehicle’s roll if it is not being rolled by another vehicle.

Your Insurance usually covers the deposited work. The insurer will request a second deposit if serious accident damage is slightly less than, equal to, or greater than the deposit. In another accident, an insurance company will always cover itself.

Standard Insurance: Pros and cons

  • All are included in the price.
  • You must leave a large deposit
  • If you have a serious accident, all of your deposit may be lost.

Intermediate Insurance

Rental companies often offer intermediate solutions, which can be as low as 10 to 20 AUD per day (on top of the rental price). 

These insurances include some material damages. Be sure to research each option’s details before making a decision. This option is worth exploring!


What does it mean?

You can reduce your deposit by paying 10 AUD daily from 1500 AUD to 1000 AUD. 

While you may pay a little more for your rental, you can still pay a maximum of 1500 AUD for any damage to the motorhome if an accident occurs. 

This is in contrast to standard Insurance, which would have made you liable for the full deposit (2500 AUD).

Pros and Cons of Intermediate Insurance

  • The deposit can be reduced. A slightly lower risk
  • If you are involved in an accident, you’ll still be responsible for a large amount. You will still need to make a large deposit.

This type of intermediate Insurance is not recommended. It is better to decline it if you have the money to buy full Insurance. It is better to pay a little less for little security or guarantees.

Full coverage insurance

Comprehensive Insurance, which is full-cover Insurance, is more commonly known. Comprehensive Insurance is the best level of Insurance. It covers repairs or damages to your vehicle and other vehicles.

How does it all work?

Many rental agencies offer comprehensive insurance packages that are often referred to as fully insured in case of an accident. It is also the most costly option, but it is the safest. 

This will allow you to avoid having to deposit at the rental agency.

Remember that Insurance doesn’t cover EVERYTHING. To ensure that you fully understand the terms and conditions of your rental agreement, it is vital to read them carefully. 

Many times, these so-called “completely / fully insured” insurance policies don’t cover the following:

  • windscreens;
  • tyres;
  • One vehicle rollover
  • Submerged vehicle
  • Night driving
  • If you collide avec an animal
  • You commit an offense
  • your personal belongings, etc.

There are pros and cons to full-cover Insurance.

  • There is no deposit. Minimal risks. You get extra benefits.
  • The daily rate is 20-30% more. Rates are higher than private Insurance and offer less coverage.

Get Insurance with your credit card.

Some banks offer Insurance for vehicle rental. This is often true for Mastercard Gold and Visa Premier cards.

What does it mean?

We recommend you verify with your Visa Premier or Mastercard Gold card if you’re covered for an accident with a Campervan/Motorhome. 

Vehicles are usually covered up to a specific size (depending upon how many cubic meters), so it is possible that you may be covered for a camper or van rental. 

The rental company will require a deposit if you are covered. 

The rental agency will use the deposit for repairs if an accident occurs. You will then be eligible to receive a refund from the bank.

Pros and Cons Of Credit Card Insurance

  • Additional Insurance does not cost extra. Accidents will cover you.
  • The rental agency will still require a deposit. Sometimes, it can be more difficult to make a claim.

Private (or third-party) insurance

Many private insurance companies offer insurance policies. Private Insurance tends to be cheaper than full Insurance offered through rental companies and offers better coverage. 

It is the most obvious choice. You should carefully read the Terms and Conditions to understand what the policy covers fully.

How does it all work?

You can choose the amount you wish to cover by Private Insurance. You will, for example, choose a plan with 2500 AUD coverage if you rent an old van. 

The rental company will ask you to make a deposit, even though you’re not purchasing their Insurance. You can claim this amount from private insurance companies if you are involved in an accident.

Many private insurances are available online. TripCover has received positive reviews. RentalCover is not reliable, so we recommend you steer clear of it. Private Insurance is available for renting a motorhome or car.

Private Insurance: Pros and Cons

  • Insurance costs less. Insurance coverage is more comprehensive than other types.
  • The rental agency still requires a deposit. You must file a claim with private Insurance.

How do you find the best rental cover?

It cannot be easy to navigate through the various insurance options. Also, it isn’t always easy to compare rental Insurance abroad online to make your decision. 

It is important to be able to distinguish between a private and a full-service provider on the internet. 

If you cannot find a comparator (such as for health insurance), you won’t be able to compare the guarantees of different insurances. These are some suggestions to assist you in your search.

A rental company comparison site is the most common way to rent a motorhome overseas. It is very helpful because foreigners don’t necessarily know all the rental companies, so it cannot be easy to find out where to look. 

They also give you a great overview of local car rental companies and the latest prices. 

These websites are easy to use and effective, but it is important to learn about all the options before you make your decision.

These sites can be used to book vehicles, but you may encounter different situations depending on your choice. Click on the offer you like.

Situation no 1. Using the website, you will only be able to find rental deals with insurance.

One proposal might be all you need, or several packages. These package deals do not include all Insurance but only intermediate coverage.

Situation no 2. You can buy private insurance through the website.

How can you recognize it? It will be clearly stated on the website that it is not its product and not offered by the rental company (i.e., It is a third party. 

It will instead mention ‘Provided By X,’ accompanied by the logo and name of the insurance company, or ‘This coverage of independent Insurance offered to you is provided by X.

Situation no 3. Both types of insurance are available on the website.

You then have the option to select your Insurance. Sometimes, comparing websites gives the impression they offer full private Insurance.

Although comparison websites can offer all types of Insurance, you should not feel pressured to purchase it. 

The comparison website allows you to book a motorhome and choose not to purchase Insurance. You can then go online and buy Insurance elsewhere. This is a great way to save money.


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