Travel Insurance and car hire

YOURLifeChoices subscriber Marty is hitting the open road in New Zealand and wants to ensure he has the correct insurance cover. But is he being offered too much cover for his needs?

Q.Marty
We are travelling to New Zealand have taken out an insurance policy to cover any unforeseen problems. We are hiring a motorhome and will be in the South Island only. In the insurance policy it states we have a $3000 hire car cover and I also took out an extra policy for $2000 which is the total excess the hire company requires up front in case of an accident. Would you advise us to take the offer of $18.00 per day cover that the hire company offer? I believe that we still have to give them the $5000 before pick up and we get it back provided there is no damage. Your assistance with this would be appreciated.

A. It sounds like the insurance you have taken will cover the amount of the excess on the hire vehicle. If so, there is no need to take additional cover with the hire company. I would suggest you contact the issuer of your travel insurance and ask for written clarification that this is indeed the case, it may make things easier for you when you go to collect your motorhome. You will still have to give a security deposit which will be refunded on return of the vehicle if undamaged. This is usually by a credit card swipe. Check with the hire company as sometimes the funds are frozen from your account, so you will need to make sure your credit limit is adequate to cover the deposit and the rest of your holiday.