There can be a lot of confusion around additional costs to reduce the rental excess, also known as “accident excess reduction” (AER), and how it differs from the insurance for your own car.
What Insurance options do we offer?
During your rental car booking process, you’ll notice that you have two options for insurance. Basic insurance is a mandatory requirement for New Zealand car rental companies.
Reducing the excess
The difference between these insurance options is the amount of “excess” you would pay if you were to make a claim. In the event that you make an insurance claim, the excess, is the amount payable by you. Once you have paid the excess, the insurance company would cover the rest of the claim. You can choose between different insurance options offered by Shore Rentals for your car hire. For example, if you pay a daily fee of $26 -$31 a day, you can reduce an excess of NZ$3,000 – $5000 to NZ$300 – $500. More information on cover for your car hire can be found on our car rental cover and insurance page.
How much does rental car insurance cost?
Car rental companies in New Zealand usually offer their insurance options as daily rates. In addition to your rental price, you will be charged a daily fee for your car insurance. It is a legal requirement in New Zealand for car rental companies to provide their customers with standard insurance at no additional charge. If you wish to reduce your excess amount for a daily rate, you can upgrade your car insurance policy. Rates for this service are charged at NZ$26 – $31 per day.
What’s included in car rental cover?
Our basic form of car rental insurance called a collision damage waiver (CDW) which provides coverage in the event of a collision or damage.
The companies Terms & Conditions page on the website provide information regarding what is not covered and what is.
What is not covered for insurance?
Some things will usually not be covered by the car rental company’s insurance, and you will have to pay for them. Examples include:
- Driving the car off-road
- If the driver is impaired by drugs or alcohol
- If the vehicle is being driven by someone who isn’t named in the rental agreement
- Damaging the car recklessly or willfully
- Used in a race, rally or contest
- Using another fuel type or substance
- Drivers who are convicted of driving offenses while hiring a vehicle
Third party insurance
To drive on New Zealand roads, you do not need car insurance. Consequently, third-party insurance is not a requirement for New Zealand car rental companies (covering other people, vehicles, and property in the event of an accident that you were at fault for). Injuries in New Zealand are normally covered by the country’s Accident Compensation Cover (ACC) whether you are a citizen, resident or visitor.
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