What to be Aware of When Hiring a Car

Compare Hire Car Providers With Canstar Blue!

Who can hire a rental car?

If you wan tto hire a rental car in New Zealand, you must be at least 21 years old and have held your licence for over a year.

Despite the minimum hiring age being 21, those under 25 may be subject to a Young Driver Surcharge. Other surcharges may apply for drivers holding a probationary (e.g. Restricted) Licence.

It is worth noting that some rental companies may not lease vehicles to those under 25, therefore, it pays to check the company’s terms and conditions.

What are my obligations when hiring a car?

If you hire a vehicle, you must not:

• Use the vehicle to carry fare-paying passengers
• Sublet the vehicle to others
• Allow anyone without a current driver licence to operate the vehicle
• Transport more goods or passengers than the vehicle is approved to carry

What do I need to do before leaving the rental company?

There are a few things you need to check before driving off in your rented vehicle. These include: knowing how to operate the vehicle, plus any additional features and noting any pre-existing damage.

Vehicle features

It is essential that you know how to operate and use the vehicle, including any smaller features that are easy to overlook, including:

1. Air conditioner/heating

Most rental cars have air conditioning and heating systems. Familiarise yourself with the controls to adjust the temperature according to your preference.

2. Radio and entertainment system

Learn how to operate the radio, CD player, or any other entertainment system in the car. Check for auxiliary or USB ports if you plan to connect external devices.

If available, Bluetooth allows you to connect your phone to the car’s audio system for hands-free calling and music streaming. Pair your device before driving.

3. Navigation/GPS

Some rental cars may come with built-in navigation systems or GPS devices. Ensure you know how to use them or consider using your smartphone for navigation.

4. Cruise control

Cruise control can be convenient for long highway drives. Learn how to set and adjust the cruise control speed.

5. Windows and mirrors

Familiarise yourself with the controls for power windows and mirrors. Check if there are child lock controls for the windows.

6. Central locking system

Understand how the central locking system works. This is often controlled by a remote key fob or buttons on the driver’s side door.

7. Fuel cap and release

Identify the location of the fuel cap release and learn how to open it. Note whether the car requires petrol or diesel fuel.

8. Spare tyre and tools

Confirm the presence of a spare tire, jack, and other tools in case of a flat tire. Know their locations and how to use them. Remember to check the condition of the tyre/tools before leaving the rental company.

9. Emergency features

Be aware of emergency features, such as the location of the hazard lights, first aid kit (if applicable), and any procedures for contacting roadside assistance.

Ask a staff member to walk you through operating these features if you are unsure.

Compare Used Car Dealerships With Canstar Blue!

Be aware of pre-existing damage

Checking for pre-existing damage on a rental car is an essential step to avoid disputes and ensure you are not held responsible for any existing issues. Take photos of any damage, including:

• Exterior damage: stone chips, scratches or dents
• Interior damage: cleanliness, any damage or wear. Condition of seats, dashboard and floor mats
• Wheels and tyres: including scratches and dents to wheels. Tread on tyres
• Lights: check all exterior lights, including headlights, brake lights, turn signals, and reverse lights
• Control and features: functionality of controls, including air conditioning, heating, radio, and entertainment systems. Confirm that power windows, mirrors, and locks are working

Remember to also verify the odometer reading against the mileage stated in the rental agreement.

Before leaving the rental lot, inform a staff member of any pre-existing damage you find. Ensure that they document it on the rental agreement and provide you with a copy.

Do I need extra car insurance?

In New Zealand, rental car agencies are obligated to include basic insurance in your rental cost, typically covering your vehicle in cases of collision and theft. You can usually choose the amount of insurance excess you’re comfortable with, bearing in mind that, as with regular car insurance, a lower excess comes with a higher premium.

However, some rental companies exploit this by charging exorbitant fees for reduced damage liability cover, often ranging from 30% to 50% of the car hire price. In some cases, the cost of reducing the excess to $0 can exceed the actual car rental fee.

While certain rental companies may permit you to opt for your own insurance instead of their default one, you’ll likely need to provide a copy of your policy. Keep in mind that the hire company can refuse or cancel the rental if they find your cover insufficient, so it’s crucial to discuss this with them as early as possible.

For those with travel insurance, it’s advisable to review your policy, as many policies cover the excess fee in the event of a road mishap. It’s important to note that your rental car agreement is directly with the rental company, not your travel insurance provider. In case of an incident, you’ll initially be responsible for paying the excess fee to the rental company and can later seek reimbursement from your travel insurance.

Here, we feature only the winners of Canstar’s latest Outstanding Value Travel Insurance Awards. But most travel insurance policy providers offer some level of hire car cover.

Rental vehicle excess cover: What’s on offer?

Here’s what level of hire car excess cover each of our award winners offers in their overseas and domestic policies:

Related article: Travel Insurance & Rental Vehicle Excess: Don’t Pay Twice

About the author of this page

This page was written by Canstar Content Producer, Caitlin Bingham. Caitlin is an experienced writer whose passion for creativity led her to study communication and journalism. She began her career freelancing as a content writer, before joining the Canstar team.