Do I pay insurance on a courtesy car?

Do you pay insurance on a courtesy car in Australia depends on whether it is a repairer courtesy car or an insurer-provided hire car. For a repairer-provided courtesy car, which is a free loan car from the smash repairer while your car is being repaired, the repairer usually has basic third party and comprehensive insurance on the courtesy car, but you are responsible for the excess if you have an accident, which can be $1,500 to $3,000, and you may be offered optional excess reduction for $10 to $20 per day. You do not pay separate daily insurance, it is included. For an insurer-provided hire car, which is a rental car from Hertz, Avis or Budget arranged by your comprehensive insurer after a not-at-fault accident or theft, insurance is included in the rental agreement, but with a high excess of $2,000 to $4,500 for damage, and you are liable for that excess if you crash. Your own comprehensive car insurance does not automatically cover the courtesy or hire car, unless your policy has a specific extension. Some comprehensive policies from NRMA, Allianz and Youi include liability cover for a hire car after accident up to a limit, but you should check. You are always responsible for fuel, tolls, traffic fines and any damage to tyres or windscreen. If you want to reduce excess on a hire car, you can buy excess reduction from the rental company for $20 to $35 per day or use independent excess insurance. So you do not pay separate insurance premium, but you are responsible for excess and you should consider excess reduction.