Planning a road trip in a rental car and making decisions on your New Zealand itinerary is incredibly exciting. However, we know how daunting researching rental car fine print and insurance inclusions can be. It is a necessary step for any car hire road trip and so we have simplified this stage for you. Read our full rental car insurance guide so you can get GOing on a Kiwi trip of a lifetime with the peace of mind that you are covered.
In this article, we will cover:
In New Zealand, car rental companies have a legal requirement to offer basic insurance as part of their base rental fees. Typically, a standard insurance will include:
A basic insurance will fully cover the cost of a rental car. However, you will have a liability to pay an excess amount in the event of an accident.
As the basic insurance package is included in the hire price, car rental companies will usually include two upgrade options. Typically, the upgrade options are not to include more policy coverage, but to reduce the excess amount you are liable to pay. However, some may add on extras for their premium cover, such as windscreen or tyre protection, to encourage upgrades.
For example, a basic insurance may have an excess amount of $4,000 NZD. The next option may provide an excess reduction to $1,000 for a cost of $35/day.
GO Rentals have three insurance options for every car rental:
Unlike standard car rental insurance, GO Rentals provides cover on top of those required by law. Our aim is to ensure your New Zealand road trip experience is stress-free and that our car hire becomes a part of your happy travel memories. All options set out in our terms include:
The rental car excess (sometimes referred to as the deductible), is the amount of money you have to pay the rental company for any damage or loss during your hire. In New Zealand, the excess amount is usually around $3,000 to $5,000 for a standard vehicle rental under the basic option.
In the unfortunate event of damaging your rental car, you will be liable to pay the excess amount for the insurance option you selected. Usually, a rental company will ask for the excess upfront as a “security bond” payment.
A security bond is similar to a deposit and usually covers the full excess amount. Upon pick up, the security bond is frozen on your credit card and only released once the rental car company assures your returned vehicle is damage free. If there are any claims for damage or loss, your excess amount is taken from the security bond.
Most car rental companies will need a credit card upon pick-up. This is so they can be assured the excess amount can be taken from your security bond.
GO Rentals require a credit card which matches the first and last name of the main hirer for the security bond on the GO Basic option. For the GO Assured and GO Peace of Mind options, we can accept a debit card for most cars, as we do not require a security bond from you. Some vehicles on GO Assured e.g., Tesla requires a bond therefore, we would still require a credit card with the main hirer’s full name.
Rather than upgrading with a car rental company, you are able to buy separate rental vehicle excess insurance. Often referred to as an excess waiver, the insurance company will cover you for the amount you are liable to pay in the event of damage or loss. However, this does not mean you will have zero excess to pay. The process would be as follows:
Therefore, even if you have rental excess waiver insurance, you will still be liable to upfront the cost of the standard excess. Depending on the excess insurance company, you may have to wait up to 10 business days to hear about the outcome of your claim before you are paid the amount.
Some comprehensive travel insurance policies may offer an option to add a rental car excess waiver. This would specifically cover you for the amount of excess you need to pay in the event of loss or damage. Similarly with rental excess insurance, you will be liable to pay the excess amount and then reclaim this back through your travel insurance. The process would be as follows:
Standard car insurance usually only covers the car specifically listed on the policy. Some policies will include cover for you to drive other cars but it may be limited to personal cars only and not to drive overseas. Always check the fine print of your standard insurance policy to investigate if you are covered.
Each car rental company will have different terms for their insurance policy, so it is always best to check the full terms and conditions ahead of purchase. However, usually car rental insurance will not cover:
Third-party insurance will cover your liability for any loss or damage caused to a third party that is deemed your fault (usually caused by accidents that are not under illegal circumstances). This is not a mandatory inclusion in New Zealand rental car insurance and so it is always important to check the fine print. If you are not covered for third-party damage and you are deemed responsible for a collision, you may be liable to pay for the other car’s costs.
The good news is, GO Rentals includes third-party insurance up to a maximum of $10,000,000 NZD for damage to other vehicles, properties and injuries.
GO Rentals goes above and beyond to ensure your rental car experience is stress free and enjoyable. Our rental car insurance includes covers beyond what is mandatory in New Zealand:
At GO Rentals, we believe road safety and fun go hand in hand. Our helpful trip planner and explore blog is designed to ensure you get to explore all of New Zealand’s natural beauty from the comfort of a modern rental vehicle .
Submit a photo from your travels to our snap happy competition and you could win up to $500 back off your rental costs. We’re not just about getting you from A to B; we’re all about creating unforgettable memories you can reminisce about. Whether it’s picturesque landscapes or hilarious family escapades, share your travel stories and excitement with our team!
With 9 car hire locations all over New Zealand, you can jump into a rental car and be confident you will safely be covered. Whichever car you choose, GO Rentals is the perfect companion.
