Book an appointment here

Loss of use insurance

Get the right cover from top insurance companies

Or call us on 0800 374 691


How much does loss of use insurance cost?

The cost of loss of use insurance in New Zealand typically averages between $20 to $30 per month, however it is affected by various factors such as the type of vehicle, coverage needed, and location. 

What is the average cost of loss of use insurance? 

Businesses in New Zealand typically pay between $20 – $30 or around $250 annually for their loss of use insurance

What most commonly impacts the premium is the extent of coverage desired, which can be tailored to meet individual needs and budget.

Understanding loss of use insurance cost factors 

The cost of a loss of use car insurance policy isn’t one-size-fits-all. There are several elements that can affect your premium. Here are three of the most impactful:

The duration of cover

The length of time you want to be insured can impact the overall cost. Most policies provide cover up to 30 days by default however you can typically customize the number of days to your choosing. Do note the more days the more the insurer will charge. 

Maximum amount per day

When you select loss of use cover, the coverage will specify a maximum amount per day. This is $100 excluding GST per day for hiring or renting a replacement vehicle, or financial reimbursement if no vehicle is available. This daily limit can be tailored lower or higher for your specific requirements. 


Different locations have varying accident rates, and this can affect the cost of insurance. Areas with a higher frequency of accidents will have higher premiums as the loss of use cover is more likely activated. 

Loss of Use Provides Cost-Effective Protection for Your Business

Loss of use insurance covers the cost of hiring or renting a replacement vehicle if your vehicle is damaged, or financial reimbursement if no replacement is available.

Loss of use minimizes downtime

By providing a rental vehicle or financial reimbursement, loss of use insurance ensures that your business continues running smoothly even if your vehicle is out of commission.

Loss of use provides financial security

Knowing that you won’t be stuck without a vehicle following an accident, you don’t have to worry about unexpected expenses during a difficult time. It aids in maintaining the business’s budget stability.

Tailored to your needs

The policy can be customized to fit your business’s specific needs, offering an efficient and economical solution that aligns with your operational requirements.

It’s crucial to have loss of use insurance if:

  • You rely on vehicles for business
  • Unplanned expenses disrupt cash flow
  • Extended downtime affects operations
  • Consistent budgeting is essential

How can you save on loss of use insurance?

There are several ways to save money on loss of use insurance, some of which may be more suitable for your specific needs and circumstances. Here are some strategies to consider:

Buy a low-cost backup vehicle

If your business has a low-cost backup vehicle ready to use in the event of an unexpected incident, you may not need loss of use insurance. Owning a spare vehicle can be a cost-effective alternative, ensuring uninterrupted operation without the need for loss of use insurance.

Reduce the duration

By opting for a shorter duration of coverage, you can lower the cost of your loss of use insurance. Consider your business’s unique needs and assess how long you might realistically need this insurance. Reducing the duration to fit your actual requirements can lead to savings.

Reduce the maximum amount per day

Choosing a policy that offers a lower daily maximum for renting or hiring a replacement vehicle, or reducing the daily financial reimbursement amount, can also reduce the premium. This option must be weighed carefully against the potential costs and availability of replacement vehicles in your area.

Engage our loss of use insurance brokers at Gerrards

Here at Gerrards, we know the ins and outs of loss of use insurance. Our team of insurance brokers is equipped to guide you through the process of selecting the most suitable and affordable insurance policy. We have an extensive network of insurance providers, and our job is to negotiate on your behalf, compare offers, and secure the best rates for you.

What our clients are saying: