Do I need to purchase excess reduction for my campervan in New Zealand?

When hiring a campervan in New Zealand, understanding your insurance options and potential financial liability is an important step in having a worry-free holiday. While rental providers include basic insurance coverage in their rates, you’ll still face significant out-of-pocket expenses if something goes wrong — unless you take steps to reduce your excess.

What is excess reduction?

The excess is the amount you’re personally liable to pay if your rental campervan is damaged, stolen, or involved in an accident during your rental period. Excess reduction (sometimes called excess waiver or liability reduction) is optional coverage you can purchase to reduce this amount. Rather than being liable for the full standard excess, you pay a daily surcharge that reduces your potential financial exposure, sometimes down to zero depending on the product you choose.

Typical campervan excess amounts

Standard excess amounts for campervan rentals in New Zealand can be considerably higher than for regular cars, typically ranging from NZ$3,000 to NZ$7,500 or more, depending on size of the campervan and the rental provider. Larger motorhomes often carry even higher excess amounts, sometimes in excess of NZ$10,000. These figures represent real money you could be required to pay if damage occurs — in some circumstances regardless of who was at fault.

Why are campervan excesses so high?

Campervan excess amounts reflect the higher value and repair costs of campervans compared to regular cars. Campervans are essentially homes with wheels, and often include kitchens, bathrooms, sleeping areas, and complex systems that are expensive to repair or replace. They can also be larger and more challenging to drive, particularly for first-time campervan drivers, increasing the risk of minor scrapes and bumps.

Why should you consider excess reduction?

Purchasing excess reduction provides you with peace of mind and financial protection. Without it, even a minor incident — a scratched panel in a tight car park, a chipped windscreen, or damage from a chance encounter with a wandering cow — could cost you thousands of dollars. For many, the daily cost of excess reduction is worthwhile insurance against unexpected expenses that could potentially derail your holiday budget.

Impact on security bonds

Many rental providers require a security bond or deposit when you collect your campervan. This amount is typically held on your credit card and reflects your potential liability for the rental motorhome. Purchasing excess reduction directly from the rental campervan provider can significantly reduce the bond amount required, meaning less of your credit limit is tied up during your holiday. Third-party insurance products, however, may not reduce the bond as the rental provider still needs to secure their exposure.

Is excess reduction optional?

Yes, excess reduction is optional, though it is strongly recommended. You can legally drive with just the basic insurance included in your rental, accepting the full excess liability. However, you’ll need sufficient funds available to cover the excess amount if required, and the rental campervan provider will typically hold a substantial security bond on your credit card.

Will my existing insurance cover me?

This varies considerably and requires detailed investigation. Some comprehensive travel insurance policies may include rental vehicle excess coverage, but many exclude campervans or motorhomes, or only cover smaller vehicles. Credit card rental car insurance, where offered, typically has similar exclusions for larger vehicles. Never assume you’re covered — always read the policy documents carefully and contact your insurer to confirm whether your specific campervan rental is included before declining the rental provider’s excess reduction.

Additional considerations

When evaluating excess reduction options, compare the daily cost against your total potential liability and trip duration. Be sure to check what is and isn’t covered, as some products exclude overhead damage, underbody damage, or single-vehicle accidents.

Important Information

When you rent a campervan in New Zealand...

If you want to reduce the security bond amount, you may need to purchase insurance products directly from the campervan rental company. Make sure you check the policy details so you know what you are and are not covered for.