Renting a car in New Zealand can be a great way to explore the country. You can travel beyond the main centers and stop as frequently as you like to take photos. Plus, it gives you the freedom to create your own schedule and explore at your own pace.
While the rules and expectations of renting a car are similar around the world, there are some unique things you should know about New Zealand. Understanding things such as insurance cover, driving laws and rental terms are important to know before you make that booking.
Choosing the right car rental provider and vehicle type are other important factors to ensure you have a smooth rental experience.
I’ve rented cars in various parts of New Zealand over the last twenty years and put together this guide based on my own learnings and experiences.
This article covers everything you need to know about renting a car in New Zealand, including choosing the right rental car company, what documentation you’ll need and what to look out for when signing a rental agreement.
Pro Tip: I always rent through Discover Cars. It searches for the best deals from multiple car rental companies to save you time and money.
» Here is our 2-week North Island road trip and 2-week South Island itineraries to help you plan your trip around New Zealand. We also have a one-day itinerary for Auckland to get you started and a 3-day itinerary for Queenstown. Be sure to check out our packing list for New Zealand and our guide to learning New Zealand slang.
The Cost of Hiring a Car in New Zealand
Whether visiting New Zealand for the first time or a regular visitor, there are a few important things to keep in mind when renting a car in New Zealand.
Compare Prices
When you’re ready to book your rental car, it’s worth comparing prices and options to ensure you’re getting the best deal. I personally like and use Discover Cars because it compares prices and features from multiple rental car companies in one place.
How much does it cost to rent a car in New Zealand?
The cost of renting a car in New Zealand varies depending on the car rental provider, type of vehicle, time of year you’ll be traveling, availability and add-ons. Base rates can range from $22 NZD per day to over $100 NZD per day for a similar size vehicle.
The peak summer months of December to February are the most expensive months for traveling in New Zealand, whereas May to October tend to have lower rates.
It’s also important to understand what is and isn’t included in the base rate to ensure you are making a like-for-like comparison. Some companies will include extra things like roadside assistance or additional insurance cover in their base rate and others will charge extra for these things.
Pickup location can also influence the cost. Auckland, Christchurch and Queenstown are the most popular places to rent a car in New Zealand and therefore tend to have the biggest fleets and better pricing.
Also bear in mind that many companies charge an additional fee for picking up or dropping off at an airport location. If you do pick up from a location outside the airport, check if they offer a free shuttle.
Additionally, some companies have older vehicles with a few more kilometers while others have a modern fleet with newer vehicles. If you don’t mind on older vehicle it can save money.
Additional Charges and Extra Costs
In addition to the base rate consider extra costs and additional charges whether these are optional or imposed. The costs of extras vary depending on what they are but can add up to the overall cost.
Optional extras that may attract an additional fee include things like additional insurance coverage and extras such as GPS, child seat, snow chains or ski racks.
Examples of imposed extra fees include:
- Picking up and dropping off your vehicle from an airport
- Additional driver fee
- Credit card surcharge
- Young driver surcharge
- Kilometer charges
- One-way fees
- Refueling fees
These are some examples but there may be others. Be sure to read the fine print or ask a sales rep to point out additional fees so you know what you’re on the hook for.
Rental Requirements
Driver’s license
In most cases, you will need a full, unrestricted and valid driver’s license for at least 1 year from your home country or an International Driving Permit (IDP) for every person who will be driving the rental vehicle.
An International Driving Permit is a translation of your driver’s license. If your license is not in English, you will need to have an IDP or an accurate translation from an approved translator along with your original license.
License requirements can be different between car rental providers and you may be required to show additional forms of identification such as a passport. Be sure to confirm what licensing and identification is required with your chosen car rental company before your arrival. If you show up without them, you might not be able to rent.
Age requirements
Most car rental companies require drivers to be at least 21 years old, and there may be additional fees for drivers under 25, called a Young Driver Surcharge. Drivers under 25 may also be restricted to certain vehicle types.
If you are over 75 you may be required to provide a medical certificate confirming you are fit to drive.
Surcharge amounts and specific restrictions vary between car rental companies, so it’s best to check the specific terms and conditions with your chosen provider.
Insurance
Car insurance is not compulsory in New Zealand. However, it is a legal requirement for car rental companies to include basic insurance as part of the base rental rate. This will typically include:
- Collision Damage Waiver which reduces the amount you will need to pay for collision damage and;
- Theft Protection/Loss Damage Waiver which reduces the amount you have to pay if your rental car is stolen during your hire period.
What this specifically covers can be different for each company and there are usually exclusions to the cover such as:
- Administration fees
- Loss or damage to add-on extras and accessories
- Loss or damage to personal effects
- Windscreen damage
- Tire damage
- Roof damage
- Undercarriage damage
- Driving on restricted roads
There may be others. It’s important to read the car rental agreement (including the fine print) and ask any questions before you sign so you know exactly what you are and aren’t covered for.
Excess (Deductible)
Although the cost of the rental car (within the terms of the policy) is covered, you will have to pay an excess amount (deductible) in the event the vehicle is damaged. The excess amount depends on the size and type of vehicle and usually ranges between $3000 and $5000 NZD for a standard vehicle.
Bond
The excess is typically held in the form of a bond when you pick up the vehicle. Most car rental companies will require a credit card in the name of the person hiring the vehicle to hold the bond as a pre-authorization, although some companies may accept a debit card.
The bond amount is usually the full excess amount. Bear in mind the excess can be upwards of $3000 NZD for a standard vehicle type, and you’ll need to have enough available funds on your credit card to cover this. This is then removed at the completion of your rental period provided there is no damage.
Insurance Excess Reduction
Most rental car companies will offer the option to upgrade your insurance. The most common upgrade is the Excess Reduction. This is where you can reduce your excess and bond deposit by paying an additional fee per day on top of the base rental rate.
The additional rate depends on the type of vehicle and how much you want to reduce the excess. For example, reducing an excess of $3000 NZD down to $200 for an additional $18 NZD per day.
Additional Insurance Cover
Additional insurance cover can include things like roadside assistance, glass and tire cover and Third-Party Liability. Since car insurance is not compulsory in New Zealand, car rental companies are not required to offer third-party insurance that covers other people, property and vehicles as a result of an accident that was your fault.
While some companies may include this in their base package, you may need to purchase this separately or choose a premium add-on from the car rental company if you want third-party cover.
It’s worth noting that New Zealand’s Accident Compensation Corporation (ACC) scheme usually covers the costs of injuries to you or others as a result of a vehicle accident, even for visitors.
It’s important that you register all drivers regardless of who signs the agreement. If an unregistered driver is involved in an accident, they will not be covered and all insurance can be null and void.
Third-Party Travel Insurance
If you have a credit card that covers collision and loss damage to rental cars or are planning on getting travel insurance with car rental cover it’s worth comparing policies to understand what you are and aren’t covered for. This way you aren’t paying for cover you already have or leaving unintended gaps in cover.
Travel insurance cover may work out cheaper than the Excess Reduction through the car rental company. Just bear in mind if you are covered through a third-party insurance provider or credit card company you will still need to pay your excess (deductible) to the car rental company and then make a claim with the third-party insurance provider or credit card company to recover the costs.
Selecting the Right Vehicle
When deciding on what type of vehicle to rent in New Zealand, it’s important to consider the vehicle size, the number of passengers you’ll have and the amount of luggage you will be carrying.
Keep in mind the varying road conditions, including narrow and winding roads, as well as driving on the left-hand side of the road to help determine what you’ll be most comfortable driving.
I generally choose a compact vehicle which is fine for most situations, but your trip might look different. For example, you might be traveling with a larger group of people or planning on driving to the ski fields in winter.
Most vehicles are automatic and you do not need a 4WD in New Zealand. The roads most visitors will be driving are sealed or well-maintained gravel roads. Besides, most rental car companies restrict their vehicles from being driven on roads that aren’t.
An exception is if you plan on driving to the ski resorts around Queenstown and Wanaka during winter. Then you may want to consider a 4WD.
Choosing the Right Car Rental Company
The choice of rental provider can have a big impact your experience. Dealing with car rental problems at the beginning of a trip or having a negative return experience isn’t a great way to start or end your trip.
For me, the three most important aspects of renting a car are:
- Choosing a reputable supplier – Look for a company that is rated 8 or higher, and read reviews from previous customers to get an idea of their experiences. This is why I use Discover Cars. After entering my travel details I set the filter (right side of screen above the selection of vehicles) to ‘price/rating’ or ‘supplier rating’ to find the best deals from companies with a proven track record.
- Be wary of the cheapest prices, as they often come with hidden fees or poor service. It’s often worth paying a little extra for a supplier that offers quality service and a hassle-free rental experience.
- Know what you’re getting into before you sign and take the keys. This is why it’s important to read the fine print and ask questions directly with your chosen car rental company to avoid any surprises.
Note that some companies don’t allow their vehicles on the Inter-Island ferry and have depots in both Wellington and Picton for you to drop off and pick up their vehicles.
Tips for Renting a Car in New Zealand
- Book early for the best deals and availability, especially during peak tourist season.
- Do a walk around of the vehicle when picking it up, taking photos or video of any pre-existing damage. Discuss any major damage with staff before driving off. It’s also a good idea to check over the vehicle with a car rental agent when dropping the vehicle off, otherwise you might not have the right to dispute any issues they find and charge you for.
- Return your vehicle with a full tank of gas, it’s less expensive than if they charge to do the refill.
- Always read the fine print, and ask questions if anything is unclear.
- Be aware of extra fees.
- Check if your rate is for unlimited mileage, or consider the financial implications if there is a cap on the mileage.
- Be strategic with pick up and drop off locations. You may have the option to pick up and return the car in different cities which, although may attract a fee, could help you to see more in the time that you have.
- Confirm what type of fuel the car takes. Most are petrol (gas), but if it’s diesel you may have to pay road-user charges.
- Always obey road rules, not only is it the safe and right thing to do, but you won’t be covered for damage caused by illegal activity.
- Consider any extras you may need such as snow chains in winter. Roads such as the Crown Range Road and Milford Sound Road in the South Island may require snow chains in certain conditions and you may be fined if you don’t have them.
Navigating New Zealand by Car
Driving rules: Familiarize yourself with New Zealand’s road rules and signage, as they may differ from those in your home country.
Road conditions: Be prepared for varying road conditions, including narrow and winding roads in rural areas, as well as driving on the left-hand side of the road.
Trip planning: Keep an eye on road closures or alerts on the NZTA website.
Cell coverage: Mobile reception can be patchy to non-existent in places, it is worth downloading maps or having an App like MAPS.ME: Offline Maps for when there’s no cellular network.
Paying a toll in New Zealand: There are only three toll roads in New Zealand, one heading north of Auckland and two in Tauranga. You can find out how to pay tolls online or at select service stations on the NZTA Government website.
Getting gas/petrol in New Zealand: New Zealand allows you to pump your own gas. There are usually card terminals at the pump or you can go into the service station to pay. Fuel prices vary depending on location.
Parking in New Zealand: Be familiar with parking rules to avoid fines. Sometimes it can be difficult to distinguish between paid and free parking. Generally, you’ll see a parking machine on the footpath where you can pay by card using the vehicle’s registration number. Some of them are electronically stored and for others, you’ll need to take a ticket from the machine and put it inside your car on the dashboard. If in doubt, ask a local, we’re a pretty friendly bunch.
Car trouble and accidents in New Zealand: If you are experiencing car trouble or involved in an accident in your rental car you should let your car rental company know as soon as possible. You’ll need the registration of the other vehicle and possibly a police report. The car rental company can guide you through the process.
Conclusion
Hiring a car in New Zealand can be an easy process when you know what to expect. The main thing is understanding the requirements and ensuring you have appropriate documentation to ensure a smooth and stress-free rental experience. Another helpful tip is to plan your routes in advance. Then you’ll be ready to hit the road with confidence. That should set up well for making the most of your rental car in New Zealand. Safe travels!
Travel Planning Guide
🚗 Where should I book my rental car?
Renting a car is one of the best ways to get around New Zealand. Public transportation can only get you so far, even in the cities. I always rent with Discover Cars, which checks the prices of all major rental car companies, so you get the best rates.
🚐 What about a campervan?
Renting a campervan is a fantastic way to experience the more remote areas of New Zealand. I really like JUCY because they have a big range of vehicles and locations around the country, which offers more flexibility with pick-up and drop-off. I also like Motorhome Republic, which compares all the campervan options available in NZ.
🎟 Where should I book my tours?
Tours are a great way to experience New Zealand’s top attractions while learning about the area and culture through local guides. We always use Viator and Get Your Guide to find the best tours.
🛏 What’s the best way to book my accommodations?
For hotels and vacation rentals, Booking.com or Expedia.com are the best sites. You can also book through TripAdvisor. If you’re considering renting a house instead, try VRBO which often has good deals.
🛩 What’s the best site to buy flights to New Zealand?
For finding the best deals on flights to New Zealand from around the world, I recommend Kayak.com.
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Heather is a travel enthusiast living in New Zealand with her family. She writes about living in and enjoying travel to New Zealand.
My husband and I are planning a trip to New Zealand in January/February 2026. We live in the US and have never driven on the opposite side of the roads in the US. I am an experienced driver, but would like to take a driving lesson in order to feel comfortable driving on a New Zealand road. Can you recommend a company that might offer such a service. Our plan is to mainly drive on the South Island, probably picking up a car in Christchurch.
Thank you
Although I’ve lived in New Zealand for a long time, I grew up and learned to drive in the US so I understand. I think a driving lesson is a great idea. The New Zealand Automobile Association (NZAA) offers 1 hour lessons for $85 NZD with locations all over the country. Here is a link to their booking page https://www.aa.co.nz/drivers/driving-school/driving-lessons/. Once you click on ‘Book a Driving Lesson’ you can search by location. Enjoy your trip!