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Do I Need to Purchase Insurance for My Rental Car in New Zealand? 

Purchasing insurance in NZ guide banner

A great way to explore New Zealand is to get on the road in a reliable car rental. However, if your rental car is involved in an accident or gets stolen you could be responsible to cover the cost of the rental vehicle, which of course, can cost you thousands of dollars. VroomVroomVroom has put together a quick guide to help you understand the car rental insurance process in New Zealand.

How car rental insurance works?

Car rental companies in New Zealand offer excess reduction products at the counter, to protect renters from paying damage costs. Although Loss Damage Waiver is generally included in the rates, an excess amount will still apply. By purchasing excess reduction products, you can reduce your financial liability.

Which car rental insurance do I need?

Rental car companies in New Zealand are likely to offer these four optional types of hire car insurance coverage when you pick up your car rental: the collision damage waiver, liability insurance, personal accident insurance and personal effects coverage.

  • Loss Damage Waiver: Generally included in the rates, Loss Damage Waiver reduces a renter's financial liability to an excess amount.
  • Supplemental Liability Protection: Buying this insurance assures you are covered for costs of injury to others in an accident. Note that car hire companies are mandated to offer the minimum level of liability insurance required.
  • Personal Accident Insurance: This insurance covers injuries or death of the driver and passengers of your rental car for an additional $1 to $5 a day.
  • Personal Effects Coverage: This coverage offers compensation for the theft of personal items from your rental car for an additional $1 to $5 a day.

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