Insurance and excess, explained properly

This is the bit rental companies are usually vague about. We would rather just tell you.

What “excess” actually means

If the car gets damaged, the excess is the most you would pay towards it. Everything above that is the insurer’s problem, not yours. It is not a charge, it is a ceiling, and most hires never come near it.

The hold on your credit card

When you pick the car up, we put a hold on your credit card for the excess amount, $2,000, or $500 if you have taken the excess reduction.

This is not a payment. The money does not come to us. Your bank simply sets it aside so it cannot be spent, and the moment you bring the car back undamaged we release it. Depending on your bank it can take a few days to show as available again.

What it does mean: bring a credit card with enough room on it. It is the one thing that catches people out, and we would rather say so now than at the counter.

Your two options

A worked example

You reverse into a bollard. It happens, and it is the single most common thing we see. Repair comes to $1,400.

On standard cover you would pay $1,400.

With excess reduction you would pay $500, and the three-day hire cost you $105 more.

The honest answer

For a careful driver doing a few days around Auckland, standard cover is usually fine. For a long trip, unfamiliar roads or a bigger vehicle, the reduction is worth it. We are not on commission. Ask us and we will tell you what we would do.

If you’re under 26

The insurer does not offer excess reduction to drivers aged 21 to 24, and the bond we hold is $2,500 rather than $2,000. We cannot change either, but we would rather you knew now than at the counter.