All campervans & motorhomes for hire in Australia have insurance included in the daily rate but there are several things to consider when selecting an insurance level. Excess levels and security bonds payable are among the most important.

The first is the amount that you are personally liable for in the event of an accident. The standard or basic insurance usually comes with quite a high excess (or deductable). That means the amount that you will be liable for in the event of an accident or other damage done to a vehicle. A large motorhome or campervan may have an excess level of $7500 so the cost to repair any damage up to that amount is your responsibility.

Even if the accident is not your fault you are still liable for that amount. If the insurance company is able to claim this back from the person responsible you may be refunded but this may not be possible and may take years in any event.

The other thing to consider is that the rental supply company needs to know that you can afford this amount if you choose not to take any additional insurance. The way they do this is collect a security bond equal to the amount of the excess They will actually take the amount from a credit card account in full at the time you collect the vehicle. This is not taken as a swipe of the card; it is debited in full.

If you do not have an accident the amount will be refunded to your credit card when the hire is completed.

If you are not comfortable taking this amount of risk you have the option of taking additional insurance. The highest level of insurance is often offered under an Inclusive Rate option. This will reduce your excess down to nil in many cases or at least down to an acceptable level of about $200 to $450. With an inclusive rate you may be offered additional insurance against overhead or underbody damage; something not usually covered at all.

Apart from having less financial risk you are no longer required to pay a large security bond. The amount of the bond will be about $200 to $450. Instead of being taken in full the amount will usually be collected only in the event of an accident or other claim.

Sometimes people may have a credit card that offers vehicle excess cover. Any third party insurance of this nature is an arrangement between the traveller and the card provider. You would still be required to pay the full security bond when collecting the vehicle. If any amount was deducted from the security bond then you would need to claim this back under the insurance offered by the credit card provider.

Insurance options and the cost involved should be outlined in any quotation you receive for a campervan or motorhome hire or be explained in any online quote feature on a website.