How do you stand for car hire insurance?

Insurance customers are often unaware of what their own vehicle policy covers them for when it comes to car hire insurance. I've reviewed a range of policy offerings and car hire insurance agreements. In summary, for Rothbury clients I found:

  1. Those insuring business use vehicles most likely have the appropriate cover under the automatic rental vehicle extension offered by business vehicle insurers.
     
  2. Those insuring private use vehicles will most likely have to accept the hire company’s offer of insurance.
     
  3. Those purchasing travel insurance should be aware of the very limited cover offered by the travel policy for this risk.

 

Hiring in New Zealand

> Most business vehicle insurance policies automatically provide cover for hired vehicles where you do not accept the hirer’s statutory offer of insurance. This automatic extension covers the hired vehicle as if it was your own, providing cover;

  • For damage to the vehicle (ranging from $75,000 – $100,000).
  • For consequential loss suffered by the hirer (ranging from $50 000 – $75 000).
  • For damage to third party property.

> There is no such cover under a private use motor vehicle policy.

> Under a domestic (internal) travel policy cover is only offered in respect of the excess. There is no cover for damage to the vehicle,consequential loss nor damage to third party property. The vehicle must be used for personal use only. Note that you must comply with the (recognised) rental agency.

 

Hiring overseas

> Business use vehicle policies do not cover use outside New Zealand so the rental vehicle extension is ineffective.

>Travel policies, whether for leisure or business travel, extend only to cover the claims excess. No cover is provided for damage to the vehicle, third party property damage nor for business use, if leisure travel cover has been arranged.

 

If in doubt, check with your broker to confirm where you stand with respect to this issue.


Wayne Amer

About the Author

Name: Wayne Amer        

I am a Senior Commercial Broker at Rothbury's Auckland branch.  Having spent over 20 years in the insurance industry my passion is broking as it means I get to spend my time assisting and advising clients on insurance matters…
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I am a Senior Commercial Broker at Rothbury's Auckland branch.  Having spent over 20 years in the insurance industry my passion is broking as it means I get to spend my time assisting and advising clients on insurance matters that will help make their businesses sustainable and successful.

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Disclaimer: The articles published on this blog are designed to provide general information and do not take into account any individual’s particular circumstances. We recommend that you obtain professional advice on your requirements before making any decision about a financial product.
 


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