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Reducing Your Car Rental Excess in New Zealand

Excess reduction

This information is for customers collecting a car hire in New Zealand. For information about car rental insurance in other countries, see the following links: Australia, Canada, United Kingdom, United States.

Option 1: Purchase Rental Vehicle Excess Insurance

VroomVroomVroom have partnered with Prosura, as agent of the insurer, to offer a Rental Vehicle Excess Insurance product to our customers.

Prosua Rental Vehicle Excess Insurance is underwritten by Pacific International Insurance Pty Ltd NZBN9429041356500, FSP394846. You should consider the Policy Wording before making any decisions about this insurance policy.

We do not provide financial advice and do not make any recommendations or representations about the superiority or suitability of this product. You should consider obtaining independent advice before making any financial decisions. We will receive a commission if you choose to purchase a policy via this website.

Visit prosura.com to learn more.

Pros:

  • Up to NZD $10,000 cover for a broad range of common expenses paid to a rental provider in connection with theft of, or accidental damage to, a rental vehicle vehicle.
  • Covers all nominated drivers listed on the Rental Vehicle Agreement with a valid driver license. No age restrictions apply.
  • Covers the excess charged by all licensed car rental companies, including all brands on this website.
  • Provides excess insurance cover for cars, four wheel drives, mini buses, people movers, campervans and motorhomes that do not exceed 4.5 tonnes.
  • Provides cover for damage to windscreens, tires, glass, undercarriage & overhead damage.
  • Provides cover for towing and relocation costs to the nearest premises owned by the Rental Provider.
  • Provides cover for fees resulting from misfuelling by filling the vehicle with the incorrect type of fuel.
  • Provides cover for fees resulting from vehicle key loss, including repairs, replacement and lock out.
  • Provides cover for all travellers within New Zealand from any residency.
  • Terms, conditions and exclusions apply. Make sure to read the Policy Wording carefully.

Cons:

  • Just like other rental vehicle excess insurance policies, this specialised Rental Vehicle Excess Insurance product provides reimbursement for out of pocket expenses. Should an incident occur, the rental car company will charge your credit card and you would then submit a claim to Prosura for assessment and reimbursement.

Total Cost:

From $17.13 per day (plus local taxes surcharges) with $0 excess. Price depends on your trip duration.


Option 2: Purchase Excess Reduction or Collision Damage Waiver at the Rental Desk

Pros:

  • You don't need to wait while the travel insurance company refunds the excess.
  • Purchase can be made at the same time that you collect your rental car.

Cons:

  • Are often more expensive than other options.
  • Excess Reduction, Collision Damage Waiver (CDW) Loss Damage Waiver (LDW) and other similar products are not insurance cover. They are a fee paid directly to the car rental company in exchange for them charging your credit card a reduced excess or nil excess in the event of an accident.
  • These products commonly exclude cover for damage to important items such as:
    • the undercarriage,
    • tyres,
    • loss of use,
    • windscreen,
    • misfuelling, and
    • single vehicle accidents.

Total Cost:

$27 - $60 per day, depending on the supplier and car type (plus local taxes surcharges).

See excess reduction information for:
Alamo logoAvis logoBudget logoEast Coast logoEnterprise logoEuropcar logoGo Rentals logoHertz logoThrifty logo


Option 3: Choose to do nothing

Pros:

  • Car rental companies usually have blanket insurance policies that cover their entire fleet of vehicles. These policies cover damage to third party property and the rental vehicles subject to payment of an excess fee paid by you, the hirer.
  • Choosing to reduce your risk by purchasing Rental Vehicle Excess Insurance or Collision Damage Waiver from an insurance company or car rental supplier is entirely your choice. It is not a legal requirement.

Cons:

  • If your rental vehicle is stolen or damaged you will be charged repair and replacement costs for the rental’s basic insurance inclusions (i.e. the vehicle) up to the excess amount and additional costs for damages which are excluded by the rental company’s basic insurance cover (for example damage to the undercarriage, roof, tyres, loss of use, windscreen, misfuelling, and single vehicle accidents). Please read the terms of your rental agreement to determine basic cover inclusions, exclusions and excess fees.

Total Cost:

$0 unless the vehicle is damaged or stolen.
We do not provide financial advice and do not make any recommendations or representations about the superiority or suitability of this product. You should consider obtaining independent advice before making any financial decisions. We will receive a commission if you choose to purchase a policy via this website. Prosura Rental Vehicle Excess Insurance is underwritten by Pacific International Insurance Pty Ltd NZBN9429041356500, FSP394846. You should consider the Policy Wording before making any decisions about this insurance policy. Terms, conditions, limits, and exclusions apply. Pacific International Insurance Pty Ltd has a B++ (Good) Financial Strength Rating issued by A.M. Best. The rating scale is: A++, A+(Superior), A,A- (Excellent), B++, B+(Good), B, B- (Fair), C++,C+ (Marginal),C,C-(Weak), D (Poor), E (Under Regulatory Supervision), F (In Liquidation), S (Rating Suspended). For the latest rating, together with an overview of the rating process and rating methodologies, go to ambest.com A.M. Best is an approved rating agency under the Insurance (Prudential Supervision) Act 2010. Pacific International is regulated by the Reserve Bank of New Zealand (RBNZ).