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Bakpacker Car Insurance in New Zealand

Insuring Your Campervan – Everything You Need to Know

Insurance is essential but combining insurance with an adventurous travelling schedule could become a bit tricky. While many insurance companies only insure on a long-term basis there are a
few companies that would suit a traveller perfectly.

If you are planning to travel around New Zealand for 3 months or longer then buying your own campervan or car might be the most cost-effective and relaxing options. But, while having your own vehicle may afford you an added element of freedom and independence, it also leaves you with that extra sense of responsibility – which makes insurance a necessary precaution.

Backpacker’s insurance gives you the peace of mind to enjoy the New Zealand roads in your newly acquired and/or temporary vehicle while knowing that if an accident occurs you are covered, depending on the option you choose.

Older vehicles tend to be the most popular choice among backpackers with a trustworthy and well-maintained history to boot. But along with the extra mileage there may be a slightly higher premium or excess fee to be paid should an unforeseen incident occur.

To help you decipher the various insurance options on offer we have compiled an easy-to-read guide below.\

Different Types of Backpacker/Short-Term Car Insurance

 Comprehensive Cover

In the event of an accident, Comprehensive Cover gives you the peace of mind to know that any damages your vehicle incurred as well as any damage to another vehicle, person or
property will be covered.

o Agreed Value: This is the total value of your vehicle, including all accessories or modifications. This amount is the amount that will be paid to you if your vehicle is stolen or written off due to excessive damage.

o Damage to Your Own Vehicle: In the event of your vehicle being involved in an accident and incurring damage, all costs will be covered as per your policy. If repairs will exceed the policy amount the vehicle may be written off and you will receive compensation for the agreed value.

o Legal Liability Cover: In the event of you being responsible for damage to another person’s vehicle or property, your policy will cover any claims made against you up to $20 million.

o Customer Service Centres: Most insurance companies will have numerous service centres to assist with repairs and services. Your cover will be determined by the policy you have chosen.

o Young Driver Flexibility: Drivers under the age of 25 may be subject to higher premiums and excess fees. In the event of an accident with an unauthorised (unlisted) driver some companies will deem the policy null and void however there are a few companies that will still cover the costs if an unlisted young driver was operating the vehicle. Higher excess fees and premiums may be charged so be sure to read your policy’s fine print.

o No fault, No Excess: In the event of an accident where you have been proven faultless you may be able to claim without paying any excess. This is only offered by a few insurance companies so be sure to read your policy’s fine print and see if your insurance company offers this clause.

 Third Party Insurance

In the event of accidental damage being inflicted on a third party’s possessions or property you will be covered for all repair/replacement costs, legal fees and excess costs. If an accident occurs and you have proven that you weren’t at fault but have identified an uninsured person at fault your insurance company may pay up to $4 000 to cover the repair costs for your vehicle.

 Third Party, Fire & Theft Cover

In the event of your vehicle being damaged by fire or stolen; your policy will pay out the agreed upon value or the repair costs. Third party cover will also cover any damages to a third party’s vehicle.

backpacker insurance

Insurance Companies in New Zealand

It is always a good idea to research possible insurance companies and check out the fine print for various policies before deciding which route is best for you. Be sure to go with a reputable and
trusted company.

AA Insurance is a popular choice among travellers, with customizable policies, On-Road Assistance for up to 1 year and easy to manage cancellation terms. AA+ Memberships are highly recommended for backpackers, even if you use another insurance company.

KiwiBank/Post Office – Kiwi Bank and the NZ Post Office offer short-term car insurance over the phone. This quick and easy method means you will be insured quickly and without hassle, but terms may be a bit confusing.

Still Looking for Your Perfect Campervan? Check out our 12 Top Tips for Buying a Campervan in New Zealand.


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