Save on Rental Car Insurance


How much does rental car insurance cost in New Zealand? 

Here’s everything you need to know.

Basic insurance is a legal requirement for New Zealand car rental companies. In the event that you make an insurance claim, the excess is the amount you pay to the car rental company. Travel worry-free by adding a standard excess reduction when renting a car in New Zealand. An excess reduction allows you to protect yourself and reduce your costs by upgrading your car insurance policy for a daily fee.

Option 1

All our vehicles are covered by car rental insurance; however, a rental car excess amount of NZD $2500 applies. We offer COLLISION DAMAGE WAIVER (CDW) Insurance (also called an ‘excess reduction’) to drivers over 21 years of age, which reduces the rental car excess amount. This reduces your liability from the standard excess. It will be NZD $400 or zero excess, depending on the car rental cover selected. Additional drivers are automatically covered. CDW rates are shown on the car rental insurance options page as you progress through the booking process. 

Note: Drivers on a Restricted/Australian Red P1 license are excluded from purchasing Collision Damage Waiver insurance (CDW). Vehicle classes available are Budget, Premium Budget Hybrid, Economy Hybrid and the Premium Elite range.

Option 2

STANDARD INSURANCE rental vehicle excess is NZD $2500.00. If an accident occurs while the car is on hire, you are liable to pay the full excess of NZD $2500.00 or the cost of repair, whichever is the lesser amount. The rental car excess applies to damage to or caused by the vehicle. This motor vehicle insurance covers damage to both the rental car and third-party vehicles or property up to the value of NZD $1,000,000.00.

Terms & Conditions

All coverage and protection options apply to insurance options 1 & 2.

The hirer must be 18 years of age or over. Credit card details are required to secure a booking in New Zealand as part of the rental agreement. Your card will be validated but not charged until you uplift your rental vehicle, where payment is taken in full.

Note: In all cases, the cardholder must be present upon the collection of the vehicle, be included on, and sign the rental car agreement. Alternatively, the hirer must pay a bond of NZD $2500.00.

Credit Card Surcharge: A payment processing fee of 1.99% will be added to the total cost of the hire if paid using VISA, Mastercard, AMEX or Overseas Debit Cards.

A debit card (such as Visa Debit, Debit Mastercard or Prepaid Travel Card) is accepted as security when hiring a rental car, provided that Gold CDW is selected, which also ensures zero excess. If Silver or Bronze CDW is selected, a debit card bond is required, which may be paid via debit card upon vehicle collection. In this case, your excess liability under Silver increases to NZD $400 and NZD $2500 for Bronze.

Please note: You can pay for the rental and/or the bond using any card, including an EFTPOS card (we do not accept cash bonds). However, an EFTPOS card is not sufficient security to secure a vehicle rental from Omega. If you do not have an accepted credit card or a bank-issued Visa or Mastercard debit card, you cannot hire rental vehicles from Omega, even with a bond payment. Any card presented should be embossed in the name of the person hiring the car and should match the name of the driver’s license being presented. Omega Rental Cars reserves the right to refuse any card. If you are unsure if your credit/debit card can be used for payment, please email us at 

Drivers between 18-21 / Restricted Licence

  • HIRERS WHO ARE 18YRS AND OVER ON A RESTRICTED NEW ZEALAND LICENCE (or Australian Red P1 driver's licence) - are excluded from purchasing Collision Damage Waiver insurance (CDW). Vehicle classes available are Budget, Premium Budget Hybrid, Economy Hybrid and the Premium Elite range. A NZ$2500.00 bond is required.
  • HIRERS WHO ARE BETWEEN 18-21YRS OF AGE and on a FULL NEW ZEALAND LICENCE (or Australian Green P2 licence) – are qualified to hire any class of vehicle as well as Collision Damage Waiver insurance (CDW). 

Insurance Exclusions

Exclusions apply where damage, injury, or loss arises when:

(a) The driver of the rental vehicle is under the influence of alcohol or any drug that affects their ability to drive;

(b) The rental vehicle is in an unsafe or unroadworthy condition, which arises during the hire, of which the Hirer or driver is aware or should be aware, and which causes or contributes to further damage or loss.

(c) The rental vehicle is operated in any race, speed test, rally or contest;

(d) The rental car is driven by any person not named in clause 3 of this agreement;

(e) The rental vehicle is driven by any person who, at the time when they drive the car, is disqualified from holding or has never held a driver’s license appropriate for the vehicle;

(f) The rental vehicle is wilfully or recklessly damaged by the Hirer, any person named in clause 3 of this agreement or any other person driving the car under the authority of the hirer;

(g) The rental car is lost or stolen as a result of wilful or reckless behaviour of the Hirer or any such person;

(h) The rental vehicle is operated outside the term of the hire or any agreed extension of the term;

(i) The rental car is operated in breach of clause 18 of the rental agreement;

(j) In the event of an accident where the driver is charged with an infringement/offence, the Hirer’s liability is increased to the replacement cost of the vehicle or a minimum of NZD $5000;

(k) The rental vehicle is operated on any beach or off-road, including Ninety Mile Beach, Te Paki Stream Bed, Skippers Canyon, Macetown, beyond Glenorchy, Raspberry Creek, Ball Pass and Hawke Road South Canterbury;

(l) Any damage is caused during the fitting or use of snow chains & roof racks while the rental vehicle  is on hire;

(m) In the event of single-vehicle accidents, towing costs and/or salvage of the rental car will be at the Hirer’s expense;

(n) The rental vehicle, including its accessories, is damaged by an item transported inside or outside the car, such as skis, snow/surfboards or bicycles;

(o) It is agreed between the Rental Car Company (Omega) and the Hirer that section 11 of the Rental Vehicle Insurance Law Reform Act 1977 shall apply to the above as if this clause constituted a contract of Insurance. The general effect of this provision is that an exclusion will not apply if the hirer proves on the balance of probability that the damage was not caused or contributed to by the matters to which the exclusion applies.

Download a Sample Contract  (PDF 950kb)