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Reducing your Car Rental Excess in New Zealand

Excess reduction

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. Note that excess is the amount you could be liable to pay if you have an accident which is not in breach of your rental agreement. Your rental car comes with a basic cover, so you are not required to purchase any protection products. The damage excess fee may vary 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.
Buy now and save later.
  • 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. 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 - the benefit is up to $2500 for car rental excess. 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 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.

Keep in mind that travel insurance may also limit what is covered for your rental vehicle excess insurance policy.

Purchase Protection Products

When you pick up your rental car, you can choose to reduce the excess amount by purchasing excess reduction products. Note that excess reduction is a daily amount specified at the counter by the supplier to reduce your excess amount in the event of any damage.

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.




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Are you an Australian resident?

Are you an Australian resident travelling to New Zealand? If yes, you can check out our insurance policy to protect yourself from possible damage costs. We offer a comprehensive alternative that is often more affordable than the excess reduction sold by car rental companies at the counter as it has more damage inclusions to it.

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