What is the difference between a courtesy car and a hire car in Australia is subtle and often confused because insurers use the terms interchangeably, but there are differences in who provides it, cost and insurance. A courtesy car is typically a free loan car provided by a smash repairer or car dealership while your car is being repaired or serviced. It is usually an older used car owned by the repairer, offered at no daily rental charge, you only pay for fuel, tolls and you are responsible for any damage, but availability is limited and not guaranteed, and often you must be over 25. A hire car is a rental car provided by a rental company like Hertz, Avis, Budget or Thrifty, arranged and paid for by your car insurer as part of your comprehensive policy benefits. Hire cars are usually newer models and are covered under a rental agreement with insurance included but with a high excess of $2,000 to $4,000. Under most Australian comprehensive policies, what they call hire car after not-at-fault accident or after theft is technically a hire car from a rental company, not a repairer courtesy car. For example, NRMA, Allianz and AAMI provide hire car for up to 14 to 21 days after theft or after not-at-fault accident if you can identify the other driver. If you are at fault, you only get a hire car if you purchased optional hire car cover. Courtesy cars from repairers are free but basic, hire cars from insurers are newer but have rental conditions and you need a credit card bond. Both require you to pay for fuel and tolls.
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