Motorhome insurance costs NZ: complete pricing guide

Many first-time owners are unsure of the extra costs involved in buying a motorhome and have questions that they want answered. For example, how much does it cost to insure a motorhome?

It is not compulsory for you to insure your motorhome in New Zealand. However, it is recommended that you do insure your motorhome, as it is a high-value item that is at considerable risk of damage due to an accident, theft or fire. If you don’t have insurance, you will likely have to cover the entirety of the loss by yourself. And it’s a lot easier to enjoy your holiday knowing that you’re insured if anything goes wrong!

In this article, we explain how much it costs to insure a motorhome and the factors that affect this expense. We also break down the different types of motorhome insurance policies, from most to least expensive. Plus, we reveal how people hiring your motorhome can receive comprehensive hire insurance at no additional cost - meaning more savings for you!

How much does it cost to insure a motorhome in New Zealand?

In New Zealand, it costs about $500 - $2,000 a year to insure a motorhome. The exact cost of your motorhome insurance policy will largely depend on the worth of your motorhome. For example:

• $50,000 motorhome = $500 per year

• $100,000 motorhome = $1,000 per year

• $200,000 motorhome = $2,000 per year

For a better idea of motorhome prices in New Zealand, have a look at our article on the best motorhome to buy. From there, you can roughly calculate the relevant insurance costs!

Another major factor in determining the cost to insure a motorhome is the type of policy you take out. There are generally four types of motorhome insurance policies offered in New Zealand:

• Comprehensive cover - the most expensive kind of motorhome insurance policy. Offers the most coverage and typically has lower excess.

• Third-party, theft and fire - the second most expensive kind of motorhome insurance policy. Covers physical loss due to fire, theft or a collision with an uninsured vehicle.

• Third-party cover - the third most expensive kind of motorhome insurance policy. Covers against damage you cause to someone else's vehicle or property. Higher excess.

• Storage cover - the least expensive kind of motorhome insurance policy. Covers damage to your motorhome while it’s in storage.

Comprehensive cover

Comprehensive is generally the most expensive kind of motorhome insurance policy and provides the widest coverage against physical loss and damage to your motorhome. But because the premiums are higher, the excesses are usually lower.

Comprehensive insurance is designed to give you peace of mind - if anything (well, almost anything) goes wrong, you are covered. It may be a good option for those who own new or expensive motorhomes and are willing to pay for the wider coverage.

Most comprehensive insurance policies will include benefits such as:

• Collision cover: when you cause accidental damage to your own motorhome.

• Fire and theft (see below)

• Accidents caused by an uninsured third party (see below)

• Claims that were not your fault

• Stolen motorhome

• Road clearing costs (capped at a certain amount)

• Towing and temporary storage

• Transport costs (capped at a certain amount)

• Window and windscreen glass

• Lost or stolen keys

• Natural disaster damage

• Motorhome contents: items kept permanently in your motorhome.

Third-party, theft and fire

Third-party, theft and fire is typically the second most expensive kind of insurance policy. It usually covers against physical loss due to fire, theft or a collision with an uninsured vehicle. The premiums are lower than that of comprehensive insurance, meaning the excess may be higher.

A third-party, theft and fire policy may be a good option if your motorhome is a few years old and you don’t want to continue paying for all the benefits of a comprehensive insurance policy.

In further detail, most third-party, theft and fire insurance policies will include benefits such as:

• Fire and theft: if your motorhome is damaged by fire, stolen or damaged during an attempted theft.

• Accidents caused by an uninsured third party: damage or loss to your motorhome in an accident caused by an uninsured third party.

• Legal liability: accidental damage you cause to someone else's vehicle or property.

• Towing and temporary storage.

Third-party cover

Third-party is often the third most expensive kind of motorhome insurance policy and only provides coverage against damage that you cause to someone else's vehicle or property.

It does not cover damages to your own motorhome. However, if an uninsured third party causes damage to your motorhome, the insurance company may chase them up for compensation in some cases.

Third-party policies may be a good choice for those who own second-hand or less expensive motorhomes and don’t want to pay as much for motorhome insurance.

Storage cover

Storage is usually the least expensive kind of motorhome insurance policy and only provides coverage against damage caused to your motorhome while it’s in storage. Some providers may also cover your motorhome when it is being restored or is in transit on another vehicle (e.g. a tow truck).

This may be a good option for people who will be keeping their motorhome in storage for long periods of time and don’t want to pay for more expensive insurance policies.

However, people considering a storage insurance policy might want to consider hiring out their motorhome through Camplify instead. That way, your motorhome will generate passive income rather than cost you money while it gathers dust in the garage. See below for details.

Lastly, there’s also hire insurance if you want to make money from your motorhome by renting it out! More on this below.

What other factors affect the cost of motorhome insurance?

Besides the value of your motorhome and the type of insurance policy that you choose, there are other factors that affect the cost of your motorhome insurance.

Other factors that will affect the cost to insure your motorhome include:

• Excess: This is the amount of money that you need to pay first in regard to any loss or damage to your motorhome. Most insurers will allow you to choose your own level of excess. The higher your excess, the lower the cost of insuring your motorhome.

• Additional options: When setting up your motorhome insurance policy, you can add optional benefits at an additional cost. Optional benefits might include coverage for accessories and modifications, contents, injury, legal costs and more.

• Storage location: If your motorhome is kept in a safe location (e.g. a shed or garage), the cost of insuring your motorhome might be less than if you were to keep your motorhome somewhere less safe (e.g. the street).

• Your driving record: If you have a clean driving record, the cost of insuring your motorhome might be less than someone with a worse driving record.

• The age of the driver: Drivers who are over 25 and have held their full licence for several years tend to pay less to insure their motorhome.

Insurance for motorhome rentals

Ready to rent out your motorhome?

Normally when hiring out your motorhome, you would have to purchase a comprehensive insurance policy that covers third parties renting and driving your vehicle. This can substantially increase the cost of insuring your motorhome.

However, when you rent out your motorhome through Camplify, we provide hirers with comprehensive hire insurance at no additional cost. This significantly reduces your own costs and allows you to enjoy peace of mind knowing that your motorhome is covered against damage and accidents during each booking..

In addition to this coverage, we also provide hirers with roadside assistance. Camplify is partnered with the AA and provides all bookings with 24/7 nationwide breakdown coverage. This reduces your costs even further and means that you’ll have less to worry about should the person hiring your motorhome need help in an emergency.

On top of all this, Camplify also has a New Zealand-based support team that is always here to help you and your hirers. Should you need assistance, give us a call and we’ll walk you through the resolution step-by-step.

So, why not start earning a return on your investment today? When your motorhome’s not in use, hire it out through Camplify and enjoy peace of mind knowing that hirers are insured to drive your vehicle!

Why Camplify?

Each year, heaps of Kiwis earn up to $10,000 by renting out their motorhome through Camplify. It provides a quick and easy way to generate long-term passive income and earn a return on their investment.

And the best part is, Camplify takes care of many of the expenses involved in hiring out your vehicle, including:

• Comprehensive hire insurance.

• 24/7 AA nationwide breakdown cover for hirers.

• Dedicated customer support.

If you’re interested in joining Camplify as an owner, try our earnings calculator and see how much income you could generate each year if you rent out your motorhome!