Car Rental Insurance New Zealand
Complete rental guide for New Zealand
With limited public transport and endless rural landscapes, a rental car can make the most of a New Zealand trip. Cities are straightforward to drive, but rural roads get narrow, winding, and weather-dependent fast.
This guide covers what you need to know about rental car insurance in New Zealand — what’s covered, what to ask at the rental desk and the driving conditions that catch visitors out.
Understanding rental car insurance in New Zealand
New Zealand doesn’t have a legal minimum for third-party liability insurance the way most countries do. Instead, injuries from car accidents are covered by the Accident Compensation Corporation (ACC), a no-fault government scheme that extends to rental vehicles. Rental companies are legally required to include a Collision Damage Waiver (CDW) in the price, which usually covers theft too — usually called a Loss Damage Waiver (LDW). But CDW/LDW still leaves real gaps in coverage.
With the rental company
What isn't included and what you may pay out-of-pocket.
High excess.
CDW from rental companies often leaves a large amount to pay if you make a claim.
Windscreens, tyres lockouts & keys.
Commonly excluded from basic CDW.
Towing & loss of use.
Can cost extra even with an upgraded SCDW policy.
With RentalCover
Fill in the gaps with protection from RentalCover.
$0 excess.
Nothing to pay if something goes wrong.
Windscreens, tyres lockouts & keys.
All covered.
Towing & loss of use.
Included, no extra cost.
Beat the rental desk price by 50%†— for just a few dollars a day!
Get an instant quoteKey driving information in New Zealand
A quick guide of rules and conditions that catch out most visiting drivers. For more detail, see NZ Transport Agency’s road safety guide.
Drive on the left
Same as Australia and the UK.
Few motorways
Cities are mostly linked by single lane roads.
Speed limits
10-110km/h, and varies by road type.
Wildlife and livestock
Watch out for wandering animals.
Rural roads
Narrow, winding and weather-dependent.
International driving permit (IDP)
Required if your licence isn't in English.
Snow and ice
Common in winter, consider snow chains.
Blood Alcohol Limit
0.05% for drivers over 20. 0% for under 20.
Road signs
Standard yellow/diamond warning system.
Pre-departure preparation checklist
Prepare these essentials before you travel!
Valid driver's licence
Bring your full driver's licence and an IDP if required.
Book RentalCover protection
Buy before you travel. This is typically 50% cheaper than at the rental desk.†
Review rental agreement
Read carefully and note the fuel policy, mileage limits and any additional fees.
Security deposit
Ensure your card can cover the deposit (often NZ$500-$3,000).
Download important documents
Save digital copies of your licence, RentalCover documents, rental confirmation and passport.
What to do at the car rental desk
Decline extra insurance
Have RentalCover Full Protection? Decline the rental desk's cover. You're already covered, even if they push back.
Conduct thorough inspection
Photograph existing damage and take a 360° video before driving.
Check fuel level
Note the level at pickup and confirm your rental company’s fuel policy.
Understand the vehicle
Get familiar with the controls and ask about anything unfamiliar.
Emergency numbers
Save the rental company's roadside assistance number.
Ready to hit the road with confidence?
Get an instant quoteWhat to do in the event of an accident
Stay calm and handle the urgent things first, then work through the rest once everyone is safe.
Emergency number in New Zealand - 111. Call immediately if there are any injuries or the accident is blocking traffic.
Right now - at the scene
Make sure everyone is safe
Check for injuries and call 111 if anyone's hurt. Move to safety and switch on hazard lights.
Call the police if needed
Required for injury or major damage. Call 111, or the local police for non-emergencies.
Once everyone is safe
Take Photographs
Photograph all vehicles, the damage, road conditions and the location. Get any witness details.
Exchange information
Swap names, vehicle registration and insurance details with the other party. Don't admit fault at the scene.
Notify the rental company
Contact them as soon as possible. They'll guide you through the next steps.
File your claim with RentalCover
Submit a claim online with your photos, the police report and repair invoices. Claims are typically processed within 5–7 business days.
Frequently asked questions
Credit card coverage varies significantly from one provider to another. Many credit card insurance policies do offer coverage for vehicles in New Zealand. Some providers, like American Express, specifically exclude coverage in New Zealand on some cards.
Credit card insurance is generally secondary coverage, meaning it relies on a primary form of insurance like your personal auto insurance before it kicks in. This means it typically covers your rental car deductible and insurance for other things your primary policy might exclude.
Since personal motor vehicle insurance often doesn't apply when you travel overseas, some credit card policies will default to primary coverage when you travel overseas.
Even if your policy does include coverage for New Zealand, it may have significant exclusions you'll need to be aware of. If you're unsure about your coverage, contact your card provider and make sure you fully understand your protection.
Some travel insurance policies include a level of rental vehicle cover. For example, some policies offer rental vehicle excess/deductible insurance, covering your out-of-pocket costs if you make a claim with another insurer, like your rental car company.
Your travel insurer typically won't offer primary cover for damage or theft to the rental vehicle itself.
On average, the cost of RentalCover protection comes to $20 a day. Rental vehicle insurance from car rental companies comes to around $70 to $90 a day.†
Car hire excess insurance offers financial protection if things go wrong while driving a rental vehicle. Outside the United States and Canada, your rental price usually includes a Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW).
Your CDW/LDW reduces your liability if the rental car is damaged or stolen, similar to basic insurance. However, it usually comes with a high excess, meaning you could still face significant out-of-pocket costs.
Car hire excess insurance covers that excess. You can buy it from the rental desk, or choose an alternative provider that may offer better value.