Insurance

Drive with confidence

Hiring a car should feel exciting — not stressful. This page explains how insurance works at Dream Drives, what "excess" means, and how excess reduction can give you greater peace of mind while exploring the South Island.

Excess reduction options and pricing are confirmed during booking and vary by vehicle.

What is an excess?

Excess is the maximum you may pay if the vehicle is damaged, stolen, or involved in an incident.
It applies per incident, not per trip.
Choosing an excess reduction option lowers your liability for covered events.

Choose your protection level

Standard

Included with your hire

Excess payable: $2,500 per incident

Comprehensive cover under our rental agreement. All damage is subject to the full excess.

Covered: Comprehensive cover under our rental agreement. Third party and collision damage.

Not covered: Windscreen and glass damage. Tyre damage. Wheel damage, cosmetic or structural. Lost or damaged keys.

Best for: Short trips, or drivers comfortable carrying the full excess

Basic Excess Reduction (BER)

NZ$25 per day

Excess payable: $1,000 per incident

Reduces your excess from $2,500 to $1,000 per incident.

Covered: Excess reduced from $2,500 to $1,000 per incident.

Not covered: Windscreen and glass damage. Tyre damage. Wheel damage, cosmetic or structural. Lost or damaged keys.

Best for: Touring, unfamiliar roads, and general peace of mind

Premium Excess Reduction (PER)

NZ$55 per day

Excess payable: $500 per incident

Reduces your excess from $2,500 to $500 per incident, and adds cover for the things Standard and Basic leave out.

Covered: Excess reduced from $2,500 to $500 per incident. Windscreen and glass repair or replacement. Tyre damage, including punctures, cuts and blowouts. Cosmetic wheel damage such as scuffs and light scratches. Lost key replacement.

Not covered: Structural wheel damage such as cracks and bends. Key delivery costs.

Best for: Long South Island road trips, remote roads, and winter driving

What's never covered (all options)

Driving under the influence of alcohol or drugs
Breach of the rental agreement, or illegal use
Off-road driving, or driving on prohibited roads
Reckless or negligent driving
Interior damage through misuse or negligence

Full details are outlined in our Terms & Conditions.

How the excess is handled

At pickup we place a flat NZ$1,000 pre-authorisation (security bond) on your card for every hire — the same amount for all vehicles and protection tiers.

If no issues occur, the hold is released after the vehicle is returned.

If damage occurs, we charge up to the applicable excess and release any remainder.

Additional charges may be invoiced after your hire (for example tolls, fines, or damage assessments). Outstanding post-hire amounts may be referred to third-party recovery partners, including international recovery where applicable, as set out in our Terms & Conditions.

Choosing the right cover

Lowest cost → Standard

Balanced protection → Basic

Maximum peace of mind → Premium