Car Rental Insurance & Liability Limit

Standard personal car insurance generally does not extend to cover rental cars. International travellers specifically will often find their home insurance does not extend to rentals abroad. You should check your own policy before renting, but you will most likely still need dedicated cover for your rental car. Comprehensive insurance and third-party liability protection is included with every Mode Rentals hire, and you simply choose your Liability Limit at the time of booking.

Rental car insurance is highly recommended in New Zealand due to variable road conditions, weather, and traffic. Even minor scratches or dents can be costly without cover, and insurance protects you from paying the full cost of repairs or replacement, including third-party claims. That’s why comprehensive insurance and third-party liability protection is included as standard with every Mode Rentals hire, and you can choose the Liability Limit that best matches your comfort level and budget for extra peace of mind.

Liability Limit

The Liability Limit is also known as the excess and is the maximum amount that you can be charged in the event of damage or theft while on hire. Where damage or other loss occurs, when we become aware of it we will charge you for that based on an estimate of the related costs, up to your chosen liability limit amount. Once costs are finalised the amount charged will be refunded or increased accordingly. Please note that different rates may apply for restricted licences or younger drivers.

Bond

The bond is the amount that will be pre-authorised (‘frozen’) on your credit or debit card at the start of your hire for the duration of the rental. The bond is released or refunded in full when the vehicle is returned undamaged with full fuel and all other conditions of hire have been adhered to. Any additional charges arising at the conclusion of the hire will be deducted prior to any bond release. Please note, it may take up to ten business days for your bank to process the release.

Your daily hire rate includes insurance relating to damage or loss and protection against third party liability up to at least $NZ 1 million. This covers you against collision damage, windscreen breakage or chips, tyre replacement or damage, and fire and theft. If an accident or theft occurs while the car is on hire, the hirer remains liable for the first part of the cost of repair or loss or damage, up to their chosen Liability Limit amount, which is held as a bond for the duration of the hire.

Comprehensive insurance is automatically included with your car rental at Mode, you will just need to choose your Liability Limit during the online booking process. Once you have selected your vehicle, you will be moved through to choosing your Liability Limit as part of the booking flow. We recommend reviewing your choice before confirming your booking to make sure you’ve selected the right level of cover for your journey. Our Mode Rentals team is also here to help with any questions around liability limits and rental car insurance — or check our Rental Care Package for more on staying covered during your trip.

The costs of dealing with personal injuries from accidents that occur in New Zealand are covered by New Zealand's Accident Compensation (ACC) scheme. We recommend you arrange your own additional insurance to cover costs associated with personal injuries that may fall outside what is covered by ACC.

Mode Rentals is not responsible for consequential costs such as disrupted travel plans or loss of enjoyment or opportunity.

If you experience mechanical or equipment failure during your hire and you have chosen the Peace of Mind insurance option, Mode Rentals will contribute up to $100 towards consequential costs arising from this failure. Examples of consequential costs may include taxi or public transport costs, missed activities, or the cost of a meal in the case of a cooking equipment failure.

There is a cap on the total amount you need to pay for any of the risk reduction options if you are booking a long hire. This is automatically calculated when you book online. Please get in touch if you have any questions about planning a long hire.

Your hirer Liability Limit is not applicable and you may be liable up to $NZ6,000 if any of the circumstances excluded in the Terms and Conditions apply. The exclusions are:

a) Any conditions of the rental agreement, including clauses 6, 7 and 11 are not complied with;
b) The vehicle is in an unsafe or unroadworthy condition, which arises during the hire, of which the Hirer is aware, or should be aware of, and which causes or contributes to further damage or loss;
c) The vehicle is wilfully or recklessly (including reckless and grossly negligent driving) damaged by the Hirer, any person named in clause 1 of the Rental Agreement or any other person driving the vehicle under the authority of the Hirer;
d) The vehicle is lost, stolen or towed as a result of willful, reckless or grossly negligent behaviour of the Hirer or any such person;
e) The driver is charged with an infringement or offence as a result of an accident.
f) Any damage is caused during the fitting of snow chains or roof racks when the vehicle is on hire;
g) In the event of wilful or reckless damage, the cost of towing and/or salvage of the vehicle will be at the Hirer’s expense