# CL-M-10: I can't get to work while my car is being repaired. Will my insurance pay for a rental car? Collected 11 October 2026 [Car insurance study](https://nzbrands.ai/research/insurance/car-insurance) ## ChatGPT Answer ID: a79b6794-a1eb-4f8d-b174-fe368f9f5aa2 In New Zealand, your car insurance may pay for a rental car while your car is being repaired, but it depends on your policy and why your car is off the road. The fact that you need a car to get to work is understandable, but insurers generally don't automatically cover rental costs just because you need transport for your daily commute. ## When will insurance cover a rental car? - You have rental car cover included: Your policy may pay for a hire car while your vehicle is being repaired, subject to limits on the number of days and the type of vehicle. - Another driver caused the accident: If the other driver was at fault, you may be able to recover reasonable rental costs from them or their insurer, depending on the circumstances and whether liability is accepted. - Your car broke down or suffered mechanical damage: Standard car insurance often doesn't cover mechanical breakdowns, and rental-car benefits may not apply. - Your policy doesn't include rental cover: You may need to pay yourself initially, although you could have other options depending on the circumstances. For example, AA Insurance says rental cover is an optional benefit on its comprehensive car insurance, while some policies have specific limits or conditions. [Making a car insurance claim – Find out how](https://www.aainsurance.co.nz/claims/car-insurance-claims)[Motor Vehicle Insurance Policy Details](https://www.mas.co.nz/insurance/motor-vehicle-insurance/motor-vehicle-insurance-policy-details/)[Car insurance](https://www.consumerprotection.govt.nz/help-product-service/cars/paying-registering-insuring-car/car-insurance) ## What you should do now 1. Contact your insurer before hiring a car. Ask whether rental car or alternative transport costs are covered. 2. Ask about a courtesy car. Your repairer may offer one, particularly if your car is being repaired through an insurer-approved repairer. [Your consumer rights](https://www.consumerprotection.govt.nz/assets/PDFs/booklet-your-consumer-rights-car-repairs.pdf) 3. Keep receipts for rental cars, taxis or public transport until you know what your policy will reimburse. ## I can help you work out whether you're covered Just tell me two things: 1. Which insurance company are you with? (e.g. AA, AMI, State, Tower, or another insurer.) 2. Why is your car being repaired? - Accident where I was at fault - Accident where someone else was at fault - Mechanical breakdown - Something else With those details, I can give you a much more specific answer about whether your insurer is likely to pay for a rental car. ## Gemini Answer ID: a41da989-b2bc-41c0-8796-492ff7a627ca Whether your car insurance will pay for a rental car depends entirely on three things: **your specific policy setup**, **who caused the damage**, and **why your car is being repaired**. The main scenarios under New Zealand insurance policies determine how this works: ### 1. You have a "Rental Car" add-on option * **How it works:** With most major New Zealand insurers (such as AA Insurance, AMI, State, and Tower), a standard Comprehensive policy **does not automatically include** a rental car. * **The catch:** It is typically an optional extra (an add-on benefit) that you must select and pay a little extra for when you buy or renew your policy. If you added this option, your insurer will reimburse or arrange a hire car/alternative transport (up to a set daily or total limit, or for a specific number of days) while your car is being repaired for an accepted claim. ### 2. The accident wasn't your fault * **How it works:** If another driver clearly caused the crash and you have their details, the situation changes. Under New Zealand law and insurance practices, the **at-fault driver's insurance** is generally liable for your "loss of use". * **What you can do:** Even if your own policy doesn't have a rental car add-on, you can often access a like-for-like replacement vehicle through accident-replacement providers (who recover the cost directly from the at-fault party's insurer) or by having your insurer claim it from the other party on your behalf. ### 3. Mechanical breakdown vs. an insurance claim * **How it works:** Car insurance policies in New Zealand only cover sudden and accidental physical loss or damage (such as a crash, storm damage, or fire). * **The catch:** If your car is being repaired because of a **mechanical breakdown** or general wear-and-tear (like a dead transmission or engine failure), standard car insurance will not pay for anything—meaning you won't get a rental car through them unless you have a separate mechanical breakdown warranty or a roadside assistance plan that provides temporary transport. --- ### What should you do next? 1. **Check your policy certificate:** Look through your insurance app, digital documents, or policy schedule to see if **"Rental Vehicle Cover,"** **"Hire Car,"** or **"Loss of Use"** is listed as an included benefit. 2. **Call your insurer:** Reach out to your provider's claims team, give them your policy number, and ask explicitly: *"Does my current claim and policy include a temporary rental car while my vehicle is off the road?"* Would you like help looking up how a specific New Zealand insurer handles this feature? ## AI Overviews Answer ID: e5862bcb-4014-4061-928c-3e92bb5c3c64 **Whether your insurance will pay for a rental car depends entirely on the specific type of policy you have and how the damage occurred.** In New Zealand, a standard car insurance policy does not automatically include a rental car (often called a "substitute vehicle" or "courtesy car") while your own vehicle is being repaired. Here is how you can determine if you are covered: 1\. Check for Optional Add-ons (Most Common) If you have **Comprehensive Car Insurance** , a rental car is usually available only if you explicitly selected and paid for it as an **optional extra** when you took out or renewed your policy. * Major insurers like AA Insurance, State Insurance, and Tower Insurance offer this as an add-on (e.g., providing a subcompact car for up to 14 or 21 days during an approved claim). * If you did not choose this add-on, your insurer will generally not pay for a rental car. 2\. If the Accident Was Not Your Fault If your car is in the shop because someone else hit you, you may have other options depending on your level of cover: * **Through the At-Fault Driver’s Insurer:** If you know who hit you and they admit fault, you (or your insurer) can request that the at-fault driver's insurance cover the cost of a rental vehicle while yours is being repaired. * **Specialist Services:** In New Zealand, independent services like Free 2 Drive specialize in providing free courtesy cars to drivers who were not at fault, recovering the costs directly from the at-fault party's insurance company. 3\. Check with Your Repairer Even if your insurance policy does not cover a rental car, many **insurance-approved panelbeaters and repair shops** maintain their own fleet of courtesy cars. They frequently provide these to customers free of charge or for a small daily fee while repairs are being completed. Always ask your assigned repairer if they have a courtesy car available before arranging a commercial rental. * * * What to look out for if you do get a rental: If you qualify for a rental car through your policy, keep in mind that you will usually still be responsible for: * Fuel costs * Security bonds or deposits required by the rental provider * Additional insurance excess packages specific to the rental company Should you pay to reduce your rental car insurance excess?Can I include rental cover on my car policy? To find out exactly where you stand, log into your insurer's online portal or check your **Policy Schedule** to see if "Rental Car Cover" or "Substitute Vehicle Cover" is listed under your policy benefits. To help narrow down your options, could you let me know: * Who is your **insurance provider**? * Was the accident **your fault** , or was it caused by **someone else**? * What **level of cover** do you have (Comprehensive or Third Party)? ## Google AI Mode Answer ID: caa7480d-540b-47bb-9e4b-a3514417adde Whether your car insurance will pay for a rental car in _New Zealand_ depends on two main things: **how you chose your policy** and **who caused the accident**. * * **If you purchased an optional add-on:** Many New Zealand insurers (such as AA Insurance or State Insurance) offer a specific "Rental Vehicle" or "Courtesy Car" add-on. If you paid extra to include this option when buying your comprehensive policy, you are typically covered for a subcompact rental car while your vehicle is being repaired from an accepted claim. * **If it was someone else's fault:** If another driver is entirely at fault and their insurance company accepts liability, their insurer will usually cover reasonable transport costs—including a rental car—while yours is out of action. Your insurer can help coordinate this liability recovery. * **If you do not have the add-on and it's your fault:** Standard comprehensive policies in New Zealand often do **not** automatically include a rental car if the accident was your fault or a single-vehicle incident (like hitting a post or storm damage), unless you bought the specific optional benefit beforehand. Some insurers might provide limited transport alternatives (like a small daily Uber allowance or a repairer's courtesy car if available), but it is never guaranteed. * You can review a general market overview of how different providers handle this on MoneyHub NZ. To give you the exact answer for your situation, tell me: * **Who your insurance provider is** * **The type of cover you have** (Comprehensive vs. Third Party) * **Whether you added a rental car option** to your policy when you signed up I can look up your specific provider's rules for you.