Accident Damage Waiver (CDW) and Theft Protection (TP) are the two types of insurance that all rental cars in New Zealand are required by law to have. Lucky for you, all of Auto Europe’s rates in New Zealand include these insurances, as well as fire and third-party liability insurance to protect your finances in case of an accident or theft involving a rental car. In New Zealand, some credit cards may offer CDW/TP insurance coverage, but it’s best to check with your credit card company before booking your rental car through Auto Europe.
Planning a road trip across New Zealand’s stunning landscapes? As an avid traveller myself I always make sure to get the right rental car insurance when hiring a vehicle in another country. Rental car insurance in New Zealand can be confusing with the various options available. This article will explain exactly what coverage you need how it works and provide tips for getting the best deal.
Overview of Rental Car Insurance in NZ
In New Zealand, it’s mandatory for all rental vehicles to include basic third party insurance This covers injury or damage to others if you’re at fault in an accident However, basic coverage does NOT include
- Damage to the rental car you hire
- Theft of the rental vehicle
- Your personal injuries
To be fully protected, you must purchase additional collision damage waiver (CDW) and theft protection from the rental company. This reduces the excess you must pay if the vehicle is stolen or damaged. Excess amounts typically range from NZ$3,000 to NZ$7,500!
Alternatively, you can buy standalone rental car excess insurance from a third party provider. This is often much cheaper than purchasing add-ons direct from the rental company.
What Does Rental Car Excess Insurance Cover?
Rental car excess insurance is designed to reduce your financial liability for:
- Damage to windscreens, tyres, the roof and undercarriage
- Theft of or damage to the rental vehicle
- Injuries to the driver and passengers
Good policies cover the entire excess amount you’d be charged by the rental company, often with no deductible. Some policies also include coverage for your personal items if stolen from the rental car.
Should You Purchase Rental Car Insurance in NZ?
Yes, rental car excess insurance is a smart idea in New Zealand for these key reasons:
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It protects you from potentially huge excess fees from the rental company.
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Insurance costs a fraction of the typical NZ$3,000 to $7,500 excess amounts.
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Peace of mind in case something happens while driving in an unfamiliar country.
I always recommend buying insurance rather than relying on a credit card’s secondary coverage. Credit card coverage has limitations and may not apply overseas.
Where to Purchase Rental Car Insurance
You have three main options for purchasing rental car excess insurance in New Zealand:
1. Direct from the Rental Company
This is the most expensive option, often costing $30-60 NZD per day. But it’s the easiest way to get coverage.
2. Through a Third Party Provider
Specialist insurers like Tripcover offer policies from just $5-10 NZD per day. You get the same coverage for much less.
3. Travel Insurance Policy Add-On
Some travel insurance providers include rental car excess as an add-on option. This can be convenient if bundled with your overall trip coverage.
I recommend getting quotes from third party providers as they almost always offer the best value.
How Does Rental Car Insurance Work in NZ?
Here are the typical steps when purchasing third party rental car excess insurance:
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Get a Quote: Provide details like rental duration, vehicle type, age of drivers etc. to get a quote.
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Buy a Policy: Pick the coverage amount you need and purchase a policy online.
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Receive Policy Documents: You’ll get proof of insurance to present when hiring the car.
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Pick Up Rental Car: Give your rental agreement/contract number to activate coverage.
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File a Claim if Needed: Make a claim with your insurer directly rather than the rental company.
Be sure to read the full policy wording so you understand exactly what is and isn’t covered.
Top Tips for Buying Rental Car Insurance in NZ
Follow these tips to find the best rental car insurance deal in New Zealand:
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Compare quotes from different third party providers.
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Check policy details like coverage amount, exclusions, claims process etc.
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Consider bundled deals like excess insurance + roadside assistance.
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Buy coverage for the full rental period rather than daily.
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Include any additional drivers on the policy.
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Purchase coverage as soon as you book the rental car.
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Print docs to present when collecting the vehicle.
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Avoid duplicating coverage (e.g. with a travel policy).
Do You Need Rental Car Insurance for Campervans?
Yes, rental car excess insurance also applies to campervans and motorhomes. The rental company will charge you an excess fee if a hired campervan is damaged or stolen.
Campervans can cost over NZ$100,000 so excess amounts are very high, usually $5,000-$10,000. I highly recommend purchasing third party campervan rental insurance for peace of mind on road trips.
Frequently Asked Questions
Here are answers to some common questions about rental car insurance in New Zealand:
What is the minimum rental car insurance needed in NZ?
Third party insurance is mandatory. This covers injury or damage to others if you’re at fault. You should also purchase excess coverage.
Does my travel insurance include rental car excess?
Some policies offer rental car excess as an optional add-on. Always check what your travel policy does/doesn’t include.
Does my credit card cover rental car insurance in NZ?
Most credit cards provide secondary coverage. But this has limitations e.g. reimbursement caps. Primary excess insurance is recommended.
Is rental car insurance required for campervans/motorhomes?
Yes, you need excess insurance for campervans to avoid huge fees if it’s damaged or stolen.
Should I purchase insurance from the rental company or a third party?
Third party providers like Tripcover offer the same coverage for much cheaper rates.
What happens if I damage the rental car without excess insurance?
You will be liable for the full excess fee charged by the rental company, often thousands of dollars.
The Bottom Line
NEW ZEALAND CAR RENTAL INSURANCE
In New Zealand, the law requires that all car rentals must have two types of insurances: A Collision Damage Waiver (CDW) and Theft Protection (TP). Fortunately, every single one of Auto Europes rates in New Zealand include both these insurances, and fire and third-party liability insurance to limit your financial risk in the unfortunate case of an rental car accident or vehicle theft. In rare cases in New Zealand specific credit cards will offer CDW/TP insurance coverage, but be sure to verify with your credit card company before reserving your car rental in New Zealand from Auto Europe.
Insurance Options Comparison: Auto Europe vs. Cost at Counter
| Mandatory Insurance in New Zealand | Avg. Insurance Cost at Counter* | Avg. Insurance Deductible at Counter* | Avg. Cost for Zero-Excess Insurance with Auto Europe* | Cost of Deductible with Zero-Excess from Auto Europe* |
|---|---|---|---|---|
| Collision Damage Waiver (CDW) + Theft Protection (TP) | $20 – $50 USD per day | $400 – $4,450 USD | $15 – $25 USD per day | $0 USD |
*Auto Europe averages are based on how much CDW TP insurance costs for three days of renting an economy, compact, mid-size, or full-size car class. The New Zealand car rental insurance rates listed here are estimates and are subject to change without notice. To get the most up-to-date price information, we recommend that you either use our booking engine to get a free quote or call Auto Europe toll-free at 1-888-223-5555 to talk to a New Zealand car rental expert.