What Happens If Your Rental Car Gets Stolen

In the bustling world of travel, renting a car is often a convenient choice, offering flexibility and mobility to explore new destinations. But sometimes, things can go wrong, like what if your rental car gets stolen. It’s scary, but knowing what to do can help. In this guide, we’ll explain step-by-step what happens if your rental car is stolen in Australia. From calling the police to understanding your insurance, we’ve got you covered. So, let’s dive in and learn how to handle this situation calmly and confidently.

Things to do If Your Rental Car Gets Stolen

1. Contact the Police Immediately :

If you discover that your rental car has been stolen, your first step should be to contact the police immediately. Provide them with all the necessary details, including the rental company, vehicle make and model, registration number, and the location where the theft occurred. This prompt action not only increases the chances of recovering the vehicle but also ensures that a police report is filed, which is crucial for insurance purposes.

2. Inform the Rental Company :

Once you’ve notified the police, contact the rental company as soon as possible to report the theft. They will guide you through the next steps, which may involve providing additional information or paperwork. Most rental companies have specific protocols in place for stolen vehicles, and they will initiate the necessary procedures to handle the situation.

3. Understand Your Rental Agreement :

The rental agreement is like a contract that outlines your responsibilities. Here’s what to focus on regarding stolen vehicles:

• Excess Fee: This is the maximum amount you could have to pay if the car is stolen. The amount can vary depending on the car and any extra insurance you bought.
• Theft Protection: Many companies offer optional theft protection (sometimes called loss damage waiver). This can significantly reduce your financial responsibility if the car is stolen, sometimes even down to zero. Check your agreement to see if you purchased this protection.

4. Did You Get Excess Reduction?

Some rental companies offer an add-on called excess reduction (or loss damage waiver).  Think of it like extra insurance specifically for situations like theft.  If you purchased excess reduction, the amount you’d have to pay towards the stolen car will be significantly reduced, depending on the specific coverage you chose.

Here’s a breakdown of how excess reduction can help:

Without Excess Reduction: If the car is stolen and you didn’t buy excess reduction, you’d be responsible for paying the full excess fee outlined in your rental agreement. 

With Excess Reduction: If you purchased excess reduction, you’d only be responsible for a smaller amount, or potentially even nothing, depending on the type of excess reduction you purchased.

Review your rental agreement carefully to see if you purchased excess reduction. This can make a big difference in how much you’d be financially responsible for if the car is stolen.

5. Car Replacement :

Unfortunately, getting a replacement car after a stolen rental isn’t guaranteed. It depends on a few factors:

1. Rental Company Policy: Some companies have policies that allow them to offer a replacement car in case of theft, while others might not.
2. Car Availability: Even if the company allows replacements, they might not have a car available in your area or matching your original rental.

When Rental Car Insurance Covers Vehicle Theft n Australia

While most rental car companies in Australia include basic cover in the base price, this doesn’t extend to theft of the vehicle. To be financially protected in case your rental car gets stolen, you’ll need to consider additional insurance options. Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) will cover the car’s value if it’s stolen, but you might still be liable for an excess fee – a predetermined amount you’d have to pay out of pocket. For the most comprehensive theft coverage, choose Theft Protection (or Loss Damage Waiver with Theft Protection). This add-on significantly reduces your excess fee in case of theft, sometimes eliminating it entirely.

When Rental Car Insurance Won’t Cover Your Stolen Ride in Australia

In Australia, there are two main situations where rental car insurance won’t cover vehicle theft:

1. Relying Solely on Basic Cover: Most rental companies include basic coverage in the base price. This, however, is where things can be misleading. This basic coverage typically focuses on third-party liability, meaning it might help with injuries or damage caused to others if you’re at fault in an accident. Unfortunately, it doesn’t extend to any damage or theft of the rental car itself. So, if you don’t purchase any additional insurance beyond the basic cover, you’ll be financially responsible for the entire value of the stolen car.
   
2. Excess Fee with CDW/LDW: Even if you opt for additional insurance, there might still be a scenario where you’re not fully covered for theft. Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) reduces your financial responsibility for damage to the vehicle, including theft. However, it’s important to understand the concept of an “excess fee.” This excess fee is a predetermined amount you’d have to pay out of pocket, even if CDW/LDW covers the car’s value. So, while CDW/LDW protects you from paying the full cost of the stolen car, you might still be liable for the excess fee depending on the specific policy.

Conclusion

Dealing with a stolen rental car can be very upsetting, but knowing what to do can ease some of the worry. It’s important to inform the police and the rental company right away, understand your insurance coverage, and cooperate fully with any necessary procedures. Although no one wants to go through theft while traveling, being prepared can greatly improve how well the situation is handled.

Remember, it’s better to prevent theft if possible. Take precautions like parking in well-lit areas, keeping valuables hidden, and always locking the vehicle when you’re not around to reduce the chances of theft during your travels in Australia. Additionally, when renting a car, consider choosing a reputable rental company like Vital Rental for car rentals in Melbourne, known for their reliable service and commitment to customer satisfaction.