Campervan Insurance and Excess in New Zealand Explained

Quick summary: Every campervan or motorhome rental includes some level of insurance, but you are usually responsible for an amount called the excess if the vehicle is damaged. Rental companies typically offer options to reduce that excess, and the terms, including what is and isn’t covered, vary between companies. Understanding how excess works, and asking the right questions before you book, means fewer surprises and a more relaxed trip.

Term	What it means
Insurance	Cover included with the rental for damage to the vehicle and third parties, subject to conditions
Excess	The maximum amount you may have to pay towards damage, even when insured
Bond	An amount held on your card at pickup, often linked to the excess
Excess reduction	An optional extra that lowers the excess you are responsible for
Exclusions	Situations and types of damage the cover doesn’t apply to

What is an excess?

The excess is the amount you would be responsible for if the vehicle is damaged or stolen, even though it is insured. Think of it as the first part of any claim, which you pay before the insurance covers the rest. On a standard rental, the excess on a motorhome can be substantial, reflecting the value of the vehicle.

Rental companies usually hold a bond on your credit card at pickup, often equal to the excess. It is released when you return the vehicle undamaged.

How do excess reduction options work?

Most rental companies offer optional extras that reduce the excess, sometimes to a much lower amount, and some reduce it to zero. These options usually come with a daily charge and may also reduce the bond held on your card. Higher levels of cover often bundle in extras, such as cover for windscreens and tyres, or included equipment.

Whether excess reduction is worth it depends on your attitude to risk and your budget. Many travellers in an unfamiliar, large vehicle on winding roads find the peace of mind worthwhile. Others use separate travel insurance that covers rental vehicle excess; if you do, check the policy wording carefully to confirm it covers motorhomes, as some policies only cover cars.

What is commonly excluded from cover?

Even with excess reduction, some situations are commonly excluded. These vary between companies, but often include:

• Driving on roads excluded by the rental agreement, such as beaches and some unsealed alpine roads. See our guide to roads to check in your rental terms.
• Damage to the roof or underbody, for example from low branches, bridges or overhanging structures, or from driving over obstacles.
• Damage caused by driving under the influence or in breach of road rules.
• Driving by an unnamed or unlicensed driver. See our licence and age considerations guide.
• Water damage, including from driving through rivers or floods.
• Damage to the interior from misuse.
• Single-vehicle accidents in some cases.

What questions should you ask before booking?

1. What is the standard excess, and what bond will be held on my card?
2. What excess reduction options are available, and what does each include?
3. What is excluded, even with the highest level of cover?
4. Are windscreens, tyres and the roof covered?
5. Which roads are excluded from the rental agreement?
6. How do I report damage or an accident on the road?
7. Who can drive under the cover, and how are additional drivers added?

Does your RV insurance at home cover a rental in New Zealand?

Usually not. Insurance on a vehicle you own at home rarely extends to a hired campervan or motorhome overseas. Rely instead on the cover offered by the rental company, or a travel insurance policy that specifically includes rental vehicle excess for motorhomes.

How can you reduce the risk of damage?

• Know your vehicle’s height, and watch for low branches, carports, drive-throughs and overhangs.
• Use a spotter when reversing or manoeuvring in tight spaces.
• Drive slowly on gravel roads to avoid stone chips.
• Take photos or video of the vehicle at pickup, noting any existing damage on the paperwork.
• Park carefully, away from overhanging trees and in spaces that fit the vehicle.

Our guide to driving New Zealand roads has more tips for staying safe on the road.

Frequently Asked Questions