I’ve travelled to the USA a few times over the past years and typically start the trip from California. The United States is a big country with that comes complexity and a lot to learn as a visitor. This short guide covers a few key things that an Australian in the States needs to know. If you’re from another country, it’ll probably help you too but just keep in mind that things are geared to Australians.
All info is correct at the time of writing. Also, it goes without saying that all information is offered without any form of warranty or guarantee
Car Rentals and Insurance
This is a surprisingly major issue for me as an Australian. I suppose this should be expected given how litigious the USA is but there’s a lot of key differences between Australian motoring operation and the USA. Firstly, in order to legally drive any vehicle, particularly a rental care, each driver must be named on the rental agreement - the same as here in Australia. This means you’ll have your driver’s licence sighted and recorded at the time of rental. The only exceptions to this are in your rental terms and conditions, but in my experience, typically someone who isn’t on the agreement can only drive in an emergency. Immediate family, such as a spouse, might also be allowed to drive without being named. If you’re arriving later than when your travel companions pick up a car, you may be able to visit a rental agency and have them amend the booking; it may cost extra though.
Now comes the mirth that is insurance. Each driver must have personal insurance in order to legally drive in the USA. This is the equivalent of CTP (Compulsory Third Party) insurance here in Australia, which covers you for any death or injury you cause in your role as a vehicle operator. However, the key difference is that for us this insurance is on the vehicle and already included in the registration of all vehicles across the country. In the USA, it’s a little different because the insurance is on an individual person and in order to legally drive, each different state has their own minimum value of insurance required (see this Wikipedia article to learn more).
In a rental agreement, this type of insurance is called a combination of:
- SLI (Supplemental Liability Insurance);
- ALI (Additional Liability Insurance); and
- PAI (Personal Accident Insurance).
At the time of writing, I have not found any insurer in Australia that offers this type of personal insurance and your travel insurance (if any; you really should have it for medical cover, but that’s a different story) explicitly denies coverage of operating a vehicle. I’ve also tried sourcing this insurance inside the USA but after much searching and calls, no insurer would cover a non-resident. So, the only way a traveller can get this insurance is from the rental car agency. If you know otherwise, I’d love to hear from you; comment below.
It’s really important to know that essentially all car rental rates quoted from travel comparison sites (eg Expedia, Travelocity etc) or car rental companies directly typically don’t include this insurance in their quoted price. The result is a shock on your part when you get a good “deal” and then are forced to pay upwards of $10 USD per day at the rental desk if you book in this way. Do your calculations and read the terms and conditions and make sure you know how much you’ll pay all up.
One solution is to use a broker like Happy Tours USA who list all their prices with “Third Party Liability Insurance” included in the price, as well as collision damage and theft insurance as well. These types of brokers aren’t very common and the few that I knew of have closed in the last years.
The best option I found - although this only works if you’re picking up the car in California, is to rent directly with Hertz. They offer $1 million of SLI automatically to foreigners (eg, as long as you have a foreign driver’s licence) and also provide a $0 excess for loss/collision damage (LDW) for free; so you’re automatically covered for personal liability and if you hit anything or your car gets stolen. There’s usually some deals on with Hertz. Make sure you read the Hertz T&Cs down the bottom of the page when you search for a date range and confirm the insurance is right for you. A final aside about Hertz: if you prepay your rate in AUD, you’ll might find random charges for some discrepancy; talk to the customer service people when you drop the car and they’ll fix it.
In summary, read the T&Cs in detail before you book and ensure you have the correct insurance. That way, when you get to the rental desk, if they demand you buy some insurance, you can refuse and point out why. In my experience, the person at the desk always tries to up-sell you insurance, fuel, GPS etc, presumably because they’re working on commission.
Lastly, if you’re thinking of driving without being on the rental agreement or without the correct insurance, you’re in for pain if you get pulled over by the police or hit/are hit by someone. Don’t cut corners; it’s possible to get a great deal on a rental without getting screwed at the counter.
Much of this I’d discovered through trial-and-error but there’s another great reference on LonelyPlanet for a breakdown of all things rental cars in the USA.
As an added bonus, here’s how to make your Australian automobile club membership (such as RACQ, RACV, NRMA or the like) work for you in the USA. Firstly, know that your auto club membership extends to the USA with automatic reciprocal membership; take your physical club card with you. This gives you breakdown support from the AAA (American Automotobile Association), including towing, breakdown help, winching, emergency fuel and a lockout service if you happen to lock your keys in the car. All you have to do is call AAA’s Emergency Road Service on 1-800-AAA-HELP (1-800-222-4357); you might want to record this phone number in your contacts.