Reducing your Car Rental Excess in New Zealand

Car hire insurance in NZ

If you're renting a car in New Zealand, you have options to reduce your financial liability. If you have not purchased any protection products, you could be liable to pay a capped excess amount for any damage caused to the rental vehicle while it is in your possession. Your rental car comes with basic cover, so you are not required to purchase any protection products. The damage excess fee varies depending on the vehicle and the supplier. Here are your options to protect your financial liability in New Zealand:

Purchase Travel Insurance

Some customers prefer using their existing travel insurance policy than purchasing excess reduction products from the car rental company. Some of these policies include cover for lost baggage and cancellations. If you are a frequent traveller, you have the option to purchase an annual policy to cover you for multiple trips.

Pre-purchase insurance so you can avoid paying out-of-pocket for any damage caused to the vehicle.
1Cover Low Cost Travel Insurance
  • Buy now and save later.
  • 1cover Travel Insurance includes a benefit of up to $5000 rental vehicle excess cover**
  • Get cover for lost baggage and cancellations
  • Frequent travellers benefit with an annual policy
  • In the event of an accident you must still pay the damage excess fee stated on the Rental Agreement to the car rental supplier and then contact 1Cover to claim it back. Taking this cover will allow you to claim reimbursement of the damage excess fee.

**This cover does not take the place of rental vehicle insurance and only provides cover for the excess component up to the applicable section limit. Conditions Apply. Visitors to New Zealand - benefit is up to $2500 for car rental excess. Check Out for a very easy online quote or for Australians. Benefit amounts are subject to change, so it is crucial that you check the product disclosure statement for more information.

If you are using another existing policy, it is important to check the rental vehicle excess cover of your policy to make sure it covers your rental vehicle. You should also be aware of any exclusions of the policy as often travel insurance products, including complimentary travel insurance offered as a credit card benefit, often provide cover for the basic rental vehicle excess only and do not provide cover for common car rental excess exclusions such as tyre, windscreen, underbody and overhead damage, premium location surcharges or administration fees.

As it is a reimbursement insurance, in the event of an accident you will still be liable to pay the damage excess fee, and afterwards you will be able to claim for reimbursement.

Purchase Protection Products

When you pick up your rental car, you can choose to reduce the excess amount by purchasing protection products. This is the easiest way to reduce the excess amount, and you will not be required to pay any charges when you return the vehicle.

There are exclusions relating to certain kinds of damage, so it is important to check this in your terms and conditions. It is also the most expensive way to reduce your financial liability.

When you pick up your car, you can choose to reduce the excess amount.
  • Avis
  • Budget
  • Enterprise
  • Europcar
  • Hertz
  • Thrifty

Are you an Australian resident?

Are you travelling to New Zealand from Australia? If you're an Australian resident, you can purchase a Hiccup Insurance policy to protect yourself against paying any fees for damage.

The insurance sold by Hiccup Insurance is an Allianz Australia product.

It is a comprehensive alternate that is often more affordable than the excess reduction sold by car rental companies at the counter.

Car rental insurance around the world

If you'd like to know how car rental insurance works in other countries, you can follow these links:
  • car hire insurance in Australia
  • car hire insurance in the UK
  • car rental insurance in the USA
  • car rental insurance in Canada
Hire a Car in New Zealand