We noticed that you're using an unsupported browser. The TripAdvisor website may not display properly.We support the following browsers:
Windows: Internet Explorer, Mozilla Firefox, Google Chrome. Mac: Safari.

Liability insurance coverage for NZ car rental ???

Virginia Beach...
Level Contributor
1,082 posts
17 reviews
Save Topic
Liability insurance coverage for NZ car rental ???

Yikes - just found out that our US car insurance policy does not provide coverage for rental cars in foreign countries. As a result, I have checked the insurance coverage provided by the NZ rental car company for our 7 week trip. After reading the rental terms and conditions and email correspondence with the rental car company, it appears that their liability coverage is only for damage to third party property and animals , but NOT injury to people. Below is the quote from the rental agent:

"Your Car Insurance will not cover any injury to the 3rd party or to yourself but will be treated just like a New Zealander in accordance with our policy called Accident Compensation Corporation where the NZ government will cover all Medical cost that will be incurred due to the accident. "

Can someone please verify that this statement is true - that the NZ gov't will cover all medical cost incurred due to an accident ?

This is so different than in the US where injury to third parties is usually covered by the liability portion of the car insurance policy of the driver causing the accident. I just want to ensure that I have adequate insurance coverage while driving in NZ.

Thank you for your help.

Joyce

Christchurch, New...
Destination Expert
for Zhuhai, Christchurch, South Island
Level Contributor
37,883 posts
376 reviews
Save Reply
31. Re: Liability insurance coverage for NZ car rental ???

Just to muddy the waters still further, my understanding of ACC's "No fault" system is that even thought the rental car company may void their cover if you are convicted, ACC cover remains - you WILL get medical treatment.

Virginia Beach...
Level Contributor
1,082 posts
17 reviews
Save Reply
32. Re: Liability insurance coverage for NZ car rental ???

Hi Global Travels:

Thank you for the clarification about medical evaluation versus Repatriation - you can tell I know zip about insurance and/or legal terms. I am worried about more about the repatriation since NZ is a long way from US and it could costs a small fortune if I cannot get onto an airplane under my own steam to return after an accident. Do you know if the DAN insurance covers Repatriation?

Of course, hubby and I just recently retired, so I guess we can just stay in NZ until full recuperation to a point where one could travel commercially. Let's just hope none of this necessary.

Of course, we will drive EXTRA CAREFUL while in NZ esp. since we are driving on the left hand side of the road. It is very difficult for us Yanks to adjust and an accident can happen not because we are being careless but because it is almost a totally different method of driving. Guess I will insist my hubby drive very slowly in NZ so we don't miss any giveaway or stop signs.

After reading some of the thread on the Jucy car rental situation, it is very disturbing. It seems there is nothing a visitor can do to cover themselves adequately while driving a rental car in NZ. I am not an insurance expert or attorney, so not ever going to try to figure it all out - but yes, rental car companies are out to make money so I am certain the fine print excludes lots of things. One saving grace, at least we can't be personally sued for causing the accident and all of our assets be taken.

33. Re: Liability insurance coverage for NZ car rental ???

-:- Message from TripAdvisor staff -:-

This post has been removed at the author's request. The author may post again if desired.

Posts on the TripAdvisor forums may be edited for a short period of time. Once the edit period has expired, authors may update their posts by removing and reposting them.

To read more about editing your posts, please follow this link: http://www.tripadvisor.com/help/how_to_edit_your_posts

Removed on: 24 May 2015, 20:41
Auckland, New...
7 posts
Save Reply
34. Re: Liability insurance coverage for NZ car rental ???

Yes...have a nice holiday..and New Zealand is oneof the best places in the world to do just that. It's beautiful, the people are friendly, the prices are reasonable. It is saferoverall than most other countries. There is no police corruption. There is free high quality accident care for tourists.. They don't call it God's own country for nothing.

And I am sure there is a way of getting full car and camper van insurance, including at fault cover...when I find that out I will post again..

Mentioned in this post
New Zealand
New Zealand
South Pacific
New Zealand
Destination Expert
for South Island
Level Contributor
29,170 posts
85 reviews
Save Reply
35. Re: Liability insurance coverage for NZ car rental ???

see post 52 on the previous insurance thread linked by Bean

....Apex covers you for at fault accidents even if you may be charged with careless driving....

Wellington, New...
Destination Expert
for Wellington, Bay of Islands
Level Contributor
10,224 posts
223 reviews
Save Reply
36. Re: Liability insurance coverage for NZ car rental ???

I think that one or two may be getting unduely worried here. If one has an accident then any injury sustained in that accident will be covered by our ACC system. It applies equally to visitors to NZ as it does to locals, so be assured that immediate medical bills will be met. Most car rental companies have comprehensive insurance on all their vehicles which means that if you have an accident and you damage a third party the insurance will cover the costs of repair. What vairies is the amount of excess one pays for the insurance to kick in. Typically in NZ the excess is around $2500, a little more in many cases for motorhomes, but the hirer has the ability to reduce the excess often to zero by paying an extra per diem charge of around $NZ10 - $15 depending upon the company concerned. If you pay the extra premium and total the car you walk away. Many visitors have travel insurance which provides for unlimited medical care and a rental car excess provision. For the medical care this will kick in if you take ill or extra medical care is required over and above ACC coverage. For rental excess this will in many cases cover any excesses payable but your car rental company will not deal with your insurance company. You will have to pay any excesses due and claim back later. If you are coming to NZ with this coverage you need to weigh up do you have suuficiient funds to meet the excesses whilst in NZ and claim back or do you want to pay a little extra and have peace of mind whilst in country.

If I am on a short overseas holiday I often pay the extra per diem fee but on a longer holiday rely on the travel insurance to claim back later. Its a risk but if one has a car for 3 weeks it can add around $300 extra to the hire fee a not inconsiderate sum.

The moral of the story is to compare apples with apples and before leaving home make sure you have adequate travel insurance especially medical insurance and if hiring a car - rental excess coverage. Also not all travel insurance policies are equal read the small print very carefully because it will be the small print that will cause you to come unstuck.

TX
Level Contributor
156 posts
126 reviews
Save Reply
37. Re: Liability insurance coverage for NZ car rental ???

So if I experience an accident my credit card / travel insurance picks up the damages to the rental vehicle - am I liable for damages to the other vehicle or does the comprehensive carried by the rental company cover that? Would there be any deductible I'm liable for?

Sydney, Australia
Destination Expert
for Train Travel
Level Contributor
95,864 posts
14 reviews
Save Reply
38. Re: Liability insurance coverage for NZ car rental ???

You have to read the fine print to know whether or not there is a deductible (called an excess in NZ) and how much that deductible is. Every policy is different, whether travel insurance, insurance provided with a card, or insurance bought through the rental company.

Burnsville...
2 posts
Save Reply
39. Re: Liability insurance coverage for NZ car rental ???

Yes. The New Zealand govt takes care of the medical expenses for you if you have a car accident or any other accident.

NZ has socialized health care. If you have cancer and you're in hospital for a month, 2 months whatever, you don't have to pay for medical expenses.

My mother was in hospital for 3 months in New Zealand. She didn't have to pay a cent.

When she came home she needed nursing care for a while. She didn't have to pay for that either.

I think the health care system in the states is disgusting, shocking and I'm an American citizen.

Mentioned in this post
New Zealand
New Zealand
South Pacific
Burnsville...
2 posts
Save Reply
40. Re: Liability insurance coverage for NZ car rental ???

Yes. The New Zealand govt takes care of the medical expenses for you if you have a car accident or any other accident.

NZ has socialized health care. If you have cancer and you're in hospital for a month, 2 months whatever, you don't have to pay for medical expenses.

My mother was in hospital for 3 months in New Zealand. She didn't have to pay a cent.

When she came home she needed nursing care for a while. She didn't have to pay for that either.

I think the health care system in the states is disgusting, shocking and I'm an American citizen.

Mentioned in this post
New Zealand
New Zealand
South Pacific