No. ‘Full cover’ or ‘full protection’ sold at checkout on booking sites and comparison websites is a separate insurance policy, not the rental company’s own waiver. When you collect your car, the rental company still holds a security deposit (typically $1,000 at East Coast Car Rentals) and you are still liable for the full damage excess if anything happens. You then claim those costs back from your third-party insurer afterwards. Only a waiver purchased directly from the rental company removes the deposit and excess at the counter.
What is third-party rental car cover?
When you book a rental car through a booking site or comparison website, you will usually be offered “full protection” or “full cover” during checkout. These policies are sold by the booking site and underwritten by an outside insurer, not by the rental car company.
Here is the part most travellers miss: that policy is a contract between you and the insurer. The rental car company is not a party to it. We never see it, we cannot verify it, and it changes nothing about the rental agreement you sign at the counter.
It is reimbursement insurance. If you end up out of pocket for damage, you lodge a claim with the insurer, and they pay you back, subject to their terms. It does not stop you from being out of pocket in the first place.
What happens at the counter if you only have third-party cover?
If you arrive with a third-party “full cover” policy and nothing else, your pick-up looks exactly the same as someone with no cover at all:
1. You pay the security deposit. A $1,000 hold goes on your credit card before the keys are handed over. This applies to every rental without a waiver, regardless of any third-party policy you hold.
2. You carry the full excess. If the car is damaged, stolen or involved in an accident, you are liable for the standard excess under your rental agreement. That amount is charged to you directly.
3. You claim it back later. Once you have paid, you gather your rental agreement, damage invoice and receipts, lodge a claim with your insurer, and wait for reimbursement. Claims can take weeks, and payouts depend on the insurer’s own exclusions.
None of this means third-party cover is a scam. It can genuinely reimburse you. But at the counter, and at the moment something goes wrong, you are treated as an uncovered renter. That is the piece booking sites do not make clear at checkout.
How claiming back from a third-party insurer works
A typical reimbursement claim runs like this:
1. Damage occurs and the excess is charged to your card by the rental company.
2. You request supporting documents: the rental agreement, a damage report, a repair invoice or quote, and proof of the charge.
3. You lodge the claim through the insurer’s portal.
4. The insurer assesses it against their policy wording. Common exclusions include tyres, windscreens, underbody, roof, water damage, driving on unsealed roads and breaches of the rental agreement.
5. If approved, you are reimbursed. Timeframes vary; many policies quote 5 to 15 business days after all documents are received, and disputes take longer.
So even in the best case, the money leaves your account first and comes back later. In the worst case, an exclusion applies and it does not come back at all. You are also carrying the admin: a stressful end to a holiday that was meant to be covered.
What booking direct with a waiver does differently
When you book directly with East Coast Car Rentals and add our Zero Excess Protection, the risk transfers to us before you pick up the car:
No $1,000 security deposit. There is no large hold sitting on your credit or debit card for the length of your trip.
No excess to pay. If the car is damaged, you hand back the keys, and we deal with it. With our top-level protection, your excess is reduced to zero.
No claims process. There is nothing to lodge, no documents to chase and no waiting on a reimbursement. There is no insurer in the middle because it is not insurance; it is us agreeing to waive your liability.
That is the fundamental difference. Third-party cover pays you back after you have paid. A waiver purchased from the rental company means you never pay in the first place.
Side-by-side comparison
| At the counter | Third-party cover from a booking site | East Coast Car Rentals Zero Excess Protection, booked direct |
|---|---|---|
| $1,000 security deposit held on your card | Yes, still required | No deposit |
| Liable for excess if the car is damaged | Yes, charged to you | No, excess reduced to zero |
| Need to pay first, then claim it back | Yes | No claim needed |
| Who assesses whether you get your money back | The insurer, under their exclusions | Nobody; there is nothing to assess |
| Common exclusions (tyres, windscreen, underbody, unsealed roads) | Often apply | Confirm final inclusions with product team |
| Who takes on the risk | You, until reimbursed | East Coast Car Rentals |
Frequently Asked Questions
Do I still pay a deposit if I bought full cover through the booking site?
Yes. Full cover purchased at checkout on a booking site is a separate insurance policy between you and the insurer. The rental company still requires its standard security deposit at pick-up, which is $1,000 at East Coast Car Rentals. The deposit is only removed when you purchase a damage waiver directly from the rental company.
Does third-party rental insurance cover the excess in Australia?
It reimburses the excess after you have paid it, subject to the policy’s exclusions. It does not remove your liability. If the car is damaged, the rental company charges the excess to you first, and you then claim that amount back from your insurer.
Is the booking site’s full protection the same as the rental company’s insurance?
No. It is sold by the booking site and underwritten by a third-party insurer. The rental company is not involved in the policy, cannot see it and does not accept it in place of a deposit or waiver. The two products work completely differently at the counter.
What is the difference between a damage waiver and rental car insurance?
A damage waiver is an agreement with the rental company itself: they waive your liability, so there is no excess to pay and nothing to claim. Insurance is a policy with an outside insurer that pays you back after you have been charged. Only a waiver changes what happens at pick-up.
Can I avoid the $1,000 deposit on my rental car?
Yes, by booking directly with East Coast Car Rentals and adding our damage waiver. With the waiver there is no security deposit and your excess is reduced to zero. Third-party policies purchased through booking sites do not remove the deposit.
Should I buy full cover through a booking site or directly from the rental company?
If your priority is not being out of pocket, buy the waiver directly from the rental company. It removes the deposit and the excess entirely. Third-party full cover is usually cheaper upfront but leaves you paying first and claiming back later, with exclusions that may apply.