Insurance & Liability Limit


Comprehensive vehicle insurance and protection against third-party liability is included with all hires. You can choose your Liability Limit, which is the amount you will need to pay in case of damage or theft. This amount will also be pre-authorised (frozen) on your credit card as a bond for the duration of your hire.

All options include Roadside Assistance for mechanical callouts.

Choose your Liability Limit:

Highest Risk

$3,000 liability limit and bond

More Manageable

$1,200 liability limit and bond

Peace of Mind

$600 liability limit and bond

Bonus Peace of Mind cover:

  • Replacement vehicle may be made available in case of third-party damage or theft
  • Our contribution of up to $100 for consequential costs arising from mechanical or equipment failure.

How it works:

With all Liability Limit options, in any of the below events you will be charged a best estimate of the repair/replacement cost up to the value of your chosen Liability Limit. Once the repair/replacement costs are finalised, we will refund any unused portion.

Events may include:

  • Damage to the hired vehicle potentially including compensation for our loss of use of the vehicle during any required repair period.
  • Windscreen breakage or chips.
  • Tyre replacement or damage.
  • Fire & Theft.

Exclusions apply: The selected Hirer Liability Limit Reduction is not valid in the event any of the exclusion circumstances set out in section 15 of the Terms & Conditions. This includes failure to comply with any requirement in our Terms and Conditions.

Long Hires

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.


What do Liability Limit and Bond mean?

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.


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.


What our insurance covers

Your daily hire rate includes insurance relating to damage or loss up to $NZ 1 million. 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.

Personal Injury

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.

Consequential Costs

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 Ultimate 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.


Insurance exclusions

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

Loading mode