Car rental in New Zealand and excess reduction insurance

Reducing your car rental excess in New Zealand

When it comes to reducing your rental car insurance excess, you have a few options to consider. Read on to find out more.

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:

Reimbursement cover for:
- excess fees charged by all licensed car rental companies, including all suppliers on this website, and
- other charges arising from accident or theft, such as:
  - damage to windscreens, tires, glass, undercarriage & overhead damage.
  - towing and relocation costs
  - misfuelling fees,
  - key loss and lock out expenses.
- Not age specific - drivers of any age are eligible for cover as long as they have a valid driver's license and are authorised to drive the car by the rental company.
- Vehicles weighing less than 4.5 tonnes, which can be driven with a standard car driver licence including, cars, four wheel drives, mini buses, people movers, campervans and motorhomes.
- No exclusions for single vehicle accidents
- Cover for damage or theft to Personal Baggage during your rental, up to $2,000 (excluding valuables)
- Emergency cancellation protection - reimbursement of a prepayment made to a rental company for your rental, if you have to cancel your rental due to the defined emergency circumstances and the rental company will not refund your prepayment.

Exclusions and eligibility terms and conditions apply. Make sure to read the Product Disclosure Statement carefully for full terms, conditions and exclusions.

Cons:

Just like any other travel insurance policy, this specialised Rental Vehicle Excess (RVE) Travel Insurance product provides reimbursement for out of pocket expenses. Should an incident occur, the rental car company will charge your credit card (capped at your excess value) 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.

Option 2: Purchase the Rental Company’s 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.

Cons:

Much more expensive than third party rental vehicle insurance options.
Excess Reduction, Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) is not regulated insurance cover. It is 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 often limit cover to damage to the car’s bodywork. They may exclude cover for damage to expensive items such as:
- the undercarriage;
- tyres;
- windscreen;
- single vehicle accidents (SVAs)
- Personal baggage.

Compare the features, limits, inclusions, exclusions and other terms and conditions of a car rental company’s waiver product before you make a decision whether or not to purchase.

Total cost:

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

Option 3: Choose not to purchase insurance or the rental company’s excess reduction package

Pros:

Car rental companies usually have blanket insurance policies that cover their entire fleet of vehicles. These policies usually cover any damage incurred to third party property and vehicles; above the excess amount they charge you the customer. Please check with the rental company for details on their insurance policies.
Choosing to reduce your risk by purchasing Rental Vehicle Excess Insurance or Collision Damage Waiver from an insurance company or car rental company is entirely your choice. It is not a legal requirement.

Cons:

In the event of an accident (major or minor), the car rental company will charge your credit card a maximum damage excess fee of between $3,350 and $9,000 depending on the car type and the supplier.
You will have no further recourse other than to pay the full amount of the damage up the excess amount.
You may be liable for other charges in addition to the excess fees where these are not included in the car rental company’s basic insurance or excess fee cap.

Total cost:

$0 per day

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).

Reducing your car rental excess in New Zealand

Option 1: Purchase Rental Vehicle Excess Insurance

Pros:

Cons:

Total cost:

Option 2: Purchase the Rental Company’s Excess Reduction or Collision Damage Waiver at the rental desk

Pros:

Cons:

Total cost:

Option 3: Choose not to purchase insurance or the rental company’s excess reduction package

Pros:

Cons:

Total cost:

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