Jane Dotson
If you're planning a motorhome road trip in New Zealand, you'll likely be considering motorhome rental insurance and liability reduction options. While comprehensive insurance is already included in the daily rental rate, you may be liable for an excess amount in the event of an accident or damage. This can be up to NZD 7,500, which could put a damper on your holiday. To avoid this, you can opt for a liability reduction option or excess waiver, which will reduce your excess amount or bring it down to zero. This will incur an additional daily cost, but it might be worth it for peace of mind.
| Characteristics | Values |
|---|---|
| Comprehensive insurance included in daily rental rate | Yes |
| Single-vehicle rollover covered | No |
| Fuel contamination covered | No |
| Zero excess option | Available |
| Liability reduction option | Available |
| Travel insurance covers excess | Sometimes |
| Premium credit cards cover collision or loss damage | Sometimes |
| Daily rate for liability reduction | NZ$20-30 for cars, NZ$25-45 for campervans and motorhomes |
| Stress-Free Insurance option | Available |
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What You'll Learn
Campervan rental insurance is already included in the daily rate
If you're renting a campervan in New Zealand, you don't need to worry about taking out separate insurance as comprehensive insurance is already included in the daily rental rate. This means that you're insured from the moment you step foot in your rental vehicle. However, it's important to be aware that this insurance comes with an excess or deductible, which is the amount that you, as the renter, are liable for in the event of an accident or damage. This excess can be up to NZD 7,500, which is a significant sum.
While it's not mandatory, you may want to consider purchasing a liability reduction option or excess waiver to reduce your financial risk. This will increase your daily rental rate, but it could save you a lot of money in the long run if something happens to the campervan. For example, if you cause a single-vehicle rollover, you will be charged for the recovery and repairs, which can easily run into the tens of thousands of dollars.
Another option to manage your risk is to take out travel insurance with an add-on for car rental insurance. This may work out cheaper than the daily rate charged by rental companies to reduce the excess, and it may also include cover for other types of damage not included in the rental company's insurance policies. However, be sure to check the fine print, as some travel insurance policies do not cover campervans or vehicles fitted for recreational use.
Ultimately, the decision of whether to take out additional insurance comes down to your personal risk appetite. If you're comfortable with the idea of paying up to NZD 7,500 in the event of an incident, then you may decide to stick with the default insurance included in your rental rate. On the other hand, if you'd rather not take on that level of financial risk, then opting for a liability reduction option or separate travel insurance with rental car cover could give you greater peace of mind.
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Liability reduction options and excess waivers
In New Zealand, all campervan rental companies include standard insurance with their base rental for free. This comprehensive insurance covers the vehicle and third-party property damage. However, it comes with an excess, typically up to NZD 7,500, which is the amount you are liable for in the event of an accident, damage, or theft.
Liability reduction options or excess waivers are available for purchase to reduce your financial risk. These options lower the excess amount you would have to pay if the campervan is damaged or stolen. The daily rate for these options usually ranges from NZD 25 to NZD 45 per day for campervans, with a NZD 20/25 per day add-on typically reducing the excess by half, and a NZD 30/45 add-on providing a zero-excess option.
Some companies offer additional waivers, such as a tyre waiver, which covers the cost of replacing tyres, and a collision damage waiver (CDW), which provides extra protection in the event of a collision. The CDW is often included in rental agreements but leaves a high excess remaining. You can purchase separate insurance to cover this excess, which is usually more affordable than the daily rate charged by rental companies to reduce the excess.
While liability reduction options are not mandatory, they can provide peace of mind and protect you from unexpected costs. The choice depends on your risk tolerance and comfort level with the default excess amount. It is important to carefully review the terms and conditions of your rental agreement and insurance options to make an informed decision.
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Travel insurance as an add-on
Travel insurance can be purchased as an add-on to your rental, which may work out cheaper than paying the daily rate to reduce the excess. It can also provide cover for other damage not included in the rental company's insurance policies. For example, if you choose not to take a zero-excess option and your rental campervan is stolen or damaged, you will need to pay the excess, even if you were not at fault.
It's important to note that travel insurance may not always cover the excess for campervans, as some policies exclude vehicles fitted for recreational use. Therefore, it's crucial to check the fine print of your travel insurance policy before assuming you're covered. Additionally, travel insurance can provide cover for other unfortunate events such as illness and travel cancellations, giving you peace of mind during your trip.
When deciding whether to purchase travel insurance as an add-on, consider your risk appetite and the potential costs involved. While you may be comfortable paying the default excess of up to NZD 7,500 per incident, opting for the travel insurance add-on can provide you with stress-free coverage for a small additional cost. This way, you can enjoy your holiday without worrying about unexpected expenses.
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Credit card insurance
When making a claim with credit card insurance, the rental company must be willing to hand over record logs of their fleet for "loss of use" claims, which may pose a challenge for renters. Travel insurance is often offered as an add-on to credit card insurance, which may be cheaper than the daily rate charged by rental companies to reduce the excess. This may also include damage not covered by the rental company's insurance policies.
When renting a campervan in New Zealand, it is important to consider the potential costs of damage and whether you are comfortable with the default excess amount or if you would prefer to take a liability reduction option. The excess amount is what you will be liable to pay if the campervan is stolen or damaged, and it can be quite high, ranging from NZD 4,000 to 8,000. While comprehensive insurance is typically included in the daily rental rate, this excess amount will be deducted from your credit card if the campervan is stolen or damaged, and you have not taken a zero-excess option.
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Comprehensive insurance
While comprehensive insurance is included in the daily rental rate, it is important to note that there is typically an excess or deductible amount that you, as the renter, are liable for. This amount can be up to 7500 NZD and is payable in the event of making an insurance claim. After the excess has been paid, the rest of the claim will be paid by the insurance company.
You may have the option to upgrade your comprehensive insurance to reduce the excess amount for a daily rate. This daily rate can range from NZ$25 to $45 per day for campervans and motorhomes. By paying this additional daily rate, you can reduce your excess amount by half or even opt for a zero-excess option, which means you won't have to pay any excess at all.
Additionally, some rental companies may offer premium insurance options that include extra cover, such as windscreen and tyre insurance. These options are usually clearly stated when selecting your insurance package.
It is worth noting that comprehensive insurance may not cover all possible scenarios. For example, some policies may not cover mechanical failure or certain types of liability. It is important to carefully review the terms, conditions, and exclusions of any comprehensive insurance policy before purchasing it.
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Frequently asked questions
All rental companies in New Zealand include standard insurance with their base rental for free, as it is a legal requirement. However, you may want to consider purchasing a liability reduction option or excess waiver to prevent a large bill at the end of your trip if the campervan is stolen or damaged.
Excess, or deductible, is the first amount payable by you in the event of making an insurance claim. After you have paid the excess, the rest of the claim will be paid by the insurance company.
The excess amount varies depending on the insurance company and the type of campervan. It can range from NZ$3,000 to NZ$8,000.
You can reduce the excess amount by upgrading your insurance policy. This will usually involve paying a daily rate, which can range from NZ$20 to NZ$45 per day for campervans.
Yes, some companies offer a Stress-Free insurance option that provides maximum cover for your vehicle. This option typically reduces your bond to zero and covers any damages to your campervan.
