Excess Reduction is a complete and easy insurance option for renters over 25 years of age. In the event of an accident, Excess Reduction (ER) reduces your financial liability to a manageable amount and provides cover for personal accidents. Provided you comply with the terms of the additional cover, ER ensures that for any loss or damage to the Budget vehicle you will not have a liability greater than the reduced excess, even if you were at fault.

Excess Reduction can be selected as an Optional Extra on your reservation and for a small fee it reduces your standard excess liability by up to 90%. The cost of optional Excess Reduction on general leisure rentals is:

Group A – E: $25.00 + GST per day
Group F – L: $28.00 + GST per day

By accepting Excess Reduction the reduced excess amount charged varies depending on the applicable Budget Corporate Discount (BCD) code or car group, but in general leisure rentals have the following reduced excess values:

Group A-E,H: $300.00 + GST
Group G, P, F, V, K, L, S, and W: $300.00 + GST


PLEASE NOTE: Excess Reduction / Budget Driver Protection is only available to renters aged 25 years or older.

Personal Accident Insurance

As an added benefit, Budget Driver Protection also includes Personal Accident Insurance (PAI), so you and any authorised driver are covered while driving the vehicle. Personal Accident Insurance (PAI) is available to customers aged 15 to 70 years at the time of accidental death or personal injury.

Compensation to the driver and occupants injured whilst using a Budget vehicle covers:

  • Accidental Death
  • Loss of one or more limbs or eyes
  • Temporary total disablement for a period not exceeding fifty-two weeks from the time the event happened
  • Medical expenses

For a full list of our PAI Insurance terms and conditions, including sums insured and claim limits, please contact Budget.

Replacement to Damaged Vehicles

In the event of an accident, Budget may replace the damaged rental vehicle at no extra cost.

Windscreen Damage

Irrespective of any excess, Budget Excess Reduction covers the repair or replacement cost of a damaged windscreen. Your liability for damage to headlights or side and rear windows will be limited to the excess under the rental agreement.