Do You Need Insurance for a Rented Motorhome in NZ?

What Comes with Rental Motorhome Insurance

Most rental motorhome companies include basic liability insurance with your rental. This typically covers damage you cause to other vehicles or property. However, this coverage often has significant limitations and may not cover everything you'd expect.

What Rental Insurance Doesn't Cover

The rental company's insurance typically doesn't cover accidental damage to the motorhome itself — you pay for this. It doesn't cover the motorhome's contents or your personal items. It may not cover windscreen and glass damage. It may exclude damage from misuse or poor maintenance. Excess/deductibles are often high — $2,500 or more.

The High Excess Problem

Rental motorhomes typically come with a $2,500-5,000 excess. This means if you damage the motorhome, you pay up to that amount. If you damage the motorhome and your expenses exceed $3,000, you pay the first $3,000 out of pocket.

Rental Excess Reduction Insurance

Rental excess reduction (or rental decline insurance) policies reduce or eliminate your liability for damage to a rental motorhome. Costs are typically $10-20 per day. If you normally pay a $3,000 excess, a $15/day policy costs about $105 for a week but protects you completely.

When to Get Rental Motorhome Insurance

Get rental motorhome insurance if you're renting a motorhome and want protection from the high excess. It's essential if you're nervous about potential damage or sharing rental driving duties with less experienced drivers. It's worth considering even for short rentals — a week's rental excess reduction might cost $100 but saves your wallet from potential $3,000+ claims.

Getting Rental Protection

Ask your motorhome rental company what insurance is included and what the excess is. Look into standalone rental excess reduction policies from insurance providers. Compare daily rental excess reduction costs versus the excess you'd pay if you damaged the motorhome. Make sure you understand exactly what the policy covers.

Peace of Mind During Your Holiday

Rental excess reduction insurance lets you enjoy your New Zealand motorhome adventure without worrying about an accidental bump costing you thousands. For most travellers, the peace of mind is worth the modest daily cost.