Australia, New Zealand & the South Pacific - What's the deal with rental car insurance in NZ?

I'll be visiting New Zealand this December (and taking six segments on NZ, two long ones and four short ones so it's not totally off topic.)

Credit cards in the US all provide insurance for rental cars, and they all have an asterisk saying except in New Zealand. What's the liability when I rent a car in NZ and turn down all of the optional insurance? For that matter, is there optional insurance? Any suggestions? Preferably other than taking the rental car company's over priced this-isn't-insurance insurance? Tnx.

It is because some features typically found in rental car insurance bought overseas are specifically legislated to be illegal in NZ. You still need insurance, but with free ACC cover (for personal injuries) this is less than the need for cover elsewhere.

I've moved this into the destination forum from the airline forum, as it more appropriately resides there.

SanDiego1K
Senior Moderator

Portions of the post that previously appeared in this space have been deleted. I would provide you with a reason why, but doing so would likely be against the TOS.

As the prior answer indicated, NZ has a different system of medical insurance, and this (and injury liability) are basically included in the price of all NZ car rentals. What is excluded is most property damage, so you would be liable for the cost to repair the car you rented (including loss of use payments, which can be higher than the repair cost) plus any damage to other people's property. Some shady car rental companies are notorious for charging hundreds of dollars for every scratch on the paint -- and they make sure they always find a few scratches. The other consideration is that some will put a hold on your credit card for several thousand dollars at the time of rental (this is disclosed in the contract and varies by company) unless you buy their insurance. The major companies (Hertz, etc.) dont do this and are reliable in my limited experience. It is definitely a point of concern, and if you have a dispute, most credit card companies will accept it as a legitimate charge under the terms of your rental contract (so you cannot refuse to pay later).

Your alternatives:
1. 3rd party car rental insurance
2. rider to your personal car insurance to cover rental cars (some insurers do this, for a very small amount, in the $100/year range)
3. umbrella policy (usually limited to liability)
4. travel insurance that includes car rental coverage (rare outside of certain countries, not offered in US or Canada generally)

Of course the car rental companies make their offering the most convenient (just not the cheapest). Sometimes you just have to accept it as a cost of the rental (e.g. in Mexico I would never consider renting a car without that companies CDW equivalent -- too many horror stories otherwise).

I poked around some more and at one fairly typical looking company, you're liable for $1000, and the insurance is $10/day. That's ridiculous.

I agree with the comment about Mexico, no sane person drives there without local insurance, since otherwise you run the risk of waiting in jail until responsibility is determined. But I would hope that NZ law would be more like UK law, and I'd be at most at risk for the thousand bucks.

What's the liability when I rent a car in NZ and turn down all of the optional insurance? You would then be responsible for any/all property damage to the vehicle up to the "excess" amount(s) specified in the rental car contract. Oh, plus GST :rolleyes:

See: http://www.flyertalk.com/forum/showpost.php?p=7008153&postcount=27

I'll be visiting New Zealand this December (and taking six segments on NZ, two long ones and four short ones so it's not totally off topic.)

Credit cards in the US all provide insurance for rental cars, and they all have an asterisk saying except in New Zealand. What's the liability when I rent a car in NZ and turn down all of the optional insurance? For that matter, is there optional insurance? Any suggestions? Preferably other than taking the rental car company's over priced this-isn't-insurance insurance? Tnx.

The asterisk you're referring to is only for Amex. US issued Visa will most certainly protect you in NZ and Australia for the "excess", which is the local equivalent of CDW. I'm pretty sure Mastercard is the same as Visa.

The excess will be specified on your rental contract. Use your Visa, decline the excess, and if you wreck the car, you'll be billed for the damages up to the excess and then Visa will eventually return your money once you send them all the documents they need. It took me about 6 months for a check because Avis at ZQN did not "try harder" to get me their invoice for the smashed windscreen.