Why Car Rental Insurance is Essential in New Zealand
Renting a car in New Zealand comes with the excitement of exploring breathtaking landscapes, but it also means navigating diverse and often challenging driving conditions. From winding mountain roads and unpredictable weather to unsealed routes and narrow, unfamiliar roads, the risks can be higher than in other countries. Local wildlife can also add unexpected challenges, making comprehensive car rental insurance highly recommended.
Car rental insurance provides financial protection and peace of mind by covering repair costs and reducing liability in case of accidents, theft, or damage. At Shore Rentals, we include Loss Damage Waiver (LDW) as standard with every rental vehicle at no extra cost. LDW limits your liability to the standard excess amount listed below, so you can focus on enjoying your New Zealand adventure stress-free.
Standard Liability
- Toyota Yaris, Holden Spark, Ford Focus, Mazda 3 – $4,000
- Mazda CX5, Kia Seltos, Kia Sportage – $5,000
- Mazda CX9, Kia Carnival – $6,000
Optional Cover – Accident Excess Reduction (AER)
Travel with confidence by adding Accident Excess Reduction (AER) to your booking. AER reduces your financial liability in case of accidents, theft, or damage, ensuring a stress-free journey. Add AER easily when booking online.
- Toyota Yaris, Holden Spark, Ford Focus, Mazda 3 – $500
- Mazda CX5, Kia Seltos, Kia Sportage – $750
- Mazda CX9, Kia Carnival – $1,000
Why Do I Need Car Rental Insurance?
Car insurance isn’t compulsory in New Zealand—even third-party coverage. However, if you’re involved in an accident (regardless of fault), you could still incur costs.
In the event of an accident:
- Please obtain a police report when possible to help determine fault.
- Notify Shore Rentals on the day of the accident so we can guide you through the next steps.
Do I Need Additional Cover if I Have Travel Insurance?
If your travel insurance includes rental car coverage, carefully review your policy:
- Some insurers require you to purchase Accident Excess Reduction.
- Many policies exclude unsealed roads, which are common in New Zealand.
If your rental car is damaged, the applicable excess will be charged to your credit card. You’ll then need to claim this amount back from your travel insurer after your trip. This applies to policies purchased independently or through a travel agent.
Am I Covered for Personal Loss or Injury?
No, our insurance does not cover personal loss (e.g., theft of belongings) or personal injury. In New Zealand, personal injury treatment is covered under the Government’s Accident Compensation Scheme (ACC).
What Is Not Covered?
- Personal loss, injury, or theft (injuries are covered under ACC).
- Driving on unsealed or off-road routes (e.g., 90 Mile Beach or State Highway 38 at Lake Waikaremoana).
- Deliberate damage to the vehicle.
- Reckless driving or driving under the influence.
- Allowing unauthorized drivers to operate the car.
- Failing to return the car within the agreed time.
Contact Us
For more details about insurance and cover options, contact our team online or visit us at our Takapuna office. We’re here to help you enjoy your New Zealand adventure with confidence.