How Does a Rental Car Work During a Claim?
In a Nutshell: If you have comprehensive insurance with hire car cover, your insurer provides a rental car while yours is being repaired (usually up to 14 days). If you're not at fault, the at-fault driver's insurer is responsible for providing a rental — even if you don't have hire car cover on your own policy. If you're at fault without hire car cover, you pay for the rental yourself.
Rental Car Cover Options
| Policy Feature | What You Get | Typical Cost Add-on |
|---|---|---|
| Hire car after claim (comprehensive) | Rental car while yours is being repaired | $50–$150/year (optional on many policies) |
| Hire car after theft | Rental car if car is stolen and not recovered (during waiting period) | Often included |
| Not-at-fault claim | Rental car paid by the at-fault driver's insurer | $0 (but not automatic — you need to arrange it) |
| No hire car cover | No rental provided — you pay out of pocket | $0 (but you pay if you need a car) |
Rental Car Limits — How Long Can You Keep It?
| Insurer | Typical Duration (After Repair) | Typical Duration (After Theft) |
|---|---|---|
| NRMA | Up to 14 days | Up to 14 days |
| AAMI | Up to 14 days | Up to 14 days |
| Allianz | Up to 14 days | Up to 14 days |
| RACV | Up to 14 days | Up to 14 days |
| Budget Direct | Up to 10 days | Up to 14 days |
| Bingle | ❌ Not included | ❌ Not included |
| Youi | Customisable (up to 14 days) | Included |
💡 Tip: Some insurers provide a "courtesy car" directly (a car from their approved rental partner). Others give you a daily allowance (e.g., $50/day) to arrange your own.
Not at Fault — You May Be Entitled to a Rental
If you're not at fault, the at-fault driver's insurer should pay for a rental car. However:
| Scenario | Will They Pay? |
|---|---|
| Not at fault, other driver has insurance | ✅ Yes — claim rental costs from their insurer |
| Not at fault, but other driver is uninsured | ⚠️ Your comprehensive may cover it (check policy) |
| Not at fault, but you don't want to go through their insurer | ✅ Your insurer may provide a rental and recover costs from the at-fault driver |
| Not at fault, but only have CTP | ❌ You must claim rental costs directly from the at-fault driver (chase them yourself) |
💡 Pro tip: If you have comprehensive insurance, the easiest path is: let YOUR insurer handle everything, including arranging a rental. They will recover the costs from the at-fault driver's insurer. You don't need to fight for it.
Types of Rental Cars Provided
| Rental Type | Typical Example | Daily Cost (Insurer's Rate) |
|---|---|---|
| Economy car | Toyota Yaris, Hyundai i20 | $30–$50/day |
| Small car | Toyota Corolla, Mazda 2 | $40–$60/day |
| Medium car | Toyota Camry, Mazda 3 | $50–$70/day |
| SUV | Toyota RAV4, Hyundai Tucson | $60–$90/day |
| Same category | Similar to your car (if available) | Negotiable |
⚠️ Note: Your insurance likely covers a standard car — not necessarily a luxury or large SUV if you drive one. Check your policy's "like for like" provision.
What If the Repairs Take Longer Than Expected?
| Situation | What Happens |
|---|---|
| Repairs delayed by repairer | Usually covered — rental car extended at the insurer's cost |
| Repairs delayed by parts availability | Usually covered — but some policies limit the rental period |
| You need the rental longer than the policy limit | You pay for extra days out of pocket |
| Repairs not progressing | Escalate to your insurer — they can authorise more time or move your car to a different repairer |
Rental Car Costs If You Don't Have Cover
| Without Rental Cover | What It Costs You |
|---|---|
| At fault + no rental cover | $40–$90/day out of pocket |
| Not at fault but only CTP | $40–$90/day (and you must chase the at-fault driver to recover) |
| Not at fault + comprehensive without rental cover | Your insurer can still claim rental costs from the at-fault driver, but they may not arrange the rental for you |
Key Takeaway
- Hire car after claim is an optional add-on on most comprehensive policies — typically $50–$150/year.
- Not at fault? The at-fault driver's insurer should pay for your rental, even if you don't have your own hire car cover.
- At fault without hire car cover? You pay for the rental yourself.
- Rental car duration: 10–14 days is standard.
- The easiest way to get a rental when not at fault: let YOUR comprehensive insurer handle everything.
- Bingle and some budget policies don't include hire car cover — check before buying.
- If your repairs are delayed beyond your rental limit, ask your insurer — they can often extend it.
Last updated: July 2026
Disclaimer: This article provides general information about rental cars during insurance claims in Australia. Policy terms vary by insurer. Always check your PDS for specifics on hire car cover.