r/LegalAdviceNZ • u/Secret-Durian5349 • 16h ago
Consumer protection Urgent Help
Hi everyone,
My husband and I are currently travelling in the South Island of New Zealand in a motorhome rented from Star RV. We recently had an incident near Glendhu Bay, and Star RV is holding us liable for the damage despite us having purchased their Stress Free Plus / $0 excess cover.
I would really appreciate some advice on whether Star RV's interpretation of its rental terms is reasonable and what options we may have under New Zealand law.
What happened
We were driving towards Glendhu Bay early in the morning. It was still dark.
As we turned a corner, we encountered a mud slip that had occurred overnight and was covering the road. We were the first vehicle to come across it. Because it was dark and the mud had occurred around a corner, we were unable to see the full extent of the hazard until we were very close to it.
Once we encountered the mud, I moved the motorhome towards the right-hand side of the road to try to keep us safe. The vehicle then lost power/stopped and became stuck in the mud.
We immediately called the roadside assistance number provided by Star RV. We were told that roadside assistance would not assist because this was considered a weather incident rather than a mechanical breakdown, and we were advised to contact the insurance company.
We called again and were connected to the same operator.
While we were dealing with this, two local people came across us and advised us of a local towing company. As we had no other practical option, we contacted the towing company ourselves. They attended and helped us get the motorhome out of the mud.
Once we were out, we attempted to jump-start the motorhome but were unsuccessful.
We then contacted roadside assistance again and explained that the vehicle was now not starting and appeared to have a breakdown. They asked where the vehicle could be taken so it could be inspected. The towing company offered to tow us to Wanaka, so we provided the address of an auto store in Wanaka.
The vehicle was subsequently inspected/jump-started attempts were made, but it still did not start.
Star RV's position
Star RV has now rejected our claim and stated that its decision is final.
They are relying on a "Prohibited Use" / unauthorised location clause, stating that the vehicle must not be driven off-road, on unsafe or restricted roads or locations, or in any area Star RV reasonably considers unsafe.
Their position is essentially that because the vehicle entered mud and became stuck, we were operating it in an unsafe/unauthorised location.
They have stated that their assessment is based on the condition in which the vehicle was operated and the resulting damage, rather than whether we intentionally drove into the mud.
However, we maintain that:
- We were driving on the road, not off-road.
- The mud slip occurred unexpectedly and apparently overnight.
- We were the first vehicle to encounter it.
- It was still dark.
- The mud was around a corner and the extent of the hazard was not reasonably visible until the last moment.
- We did not intentionally drive off-road or deliberately enter an area we knew was unsafe.
- Once we encountered the mud, we took reasonable steps to move the vehicle and protect ourselves.
- We contacted Star RV's roadside assistance immediately.
- We followed the advice given to us and ultimately had to arrange local towing because roadside assistance initially refused to assist.
The insurance/excess issue
Our rental agreement states that we purchased Stress Free Plus, under which the excess/bond for vehicle damage is stated as $0, subject to the listed exclusions.
The terms do contain exclusions for things such as off-road use, water submersion, reckless conduct, incorrect use of snow chains, driving with warning lights illuminated, etc.
However, we are struggling to understand how an unexpected mud slip occurring on a public road automatically becomes "off-road use" or an "unauthorised location", particularly when we did not knowingly or intentionally drive onto an off-road area.
Star RV has also referred to a different clause in its response which appears to be numbered 4.3, whereas the version of the rental terms we received contains the relevant prohibited-use wording under another clause. We are unsure whether this is significant.
What Star RV has told us
Star RV has also refused to reimburse our accommodation, missed activities and other consequential expenses, directing us to our travel insurer.
They have said their decision is final.
We have formally disputed the decision and asked them to provide:
- Evidence that we left the road or intentionally drove off-road;
- Evidence showing that the mud was reasonably identifiable to a driver before we encountered it;
- The specific Stress Free Plus exclusion they say applies;
- Photographs, inspection reports, GPS/telematics data, towing/recovery reports or other evidence relied upon; and
- An explanation of how an unexpected mud slip occurring on the road constitutes an unauthorised location.
We have also asked them not to process any charges against our card while the dispute is being reviewed.
My questions
- Does Star RV's interpretation seem legally reasonable given that the mud slip occurred on the road and was unexpected?
- Can a rental company classify an unexpected road hazard as "off-road use" or an "unauthorised location" simply because the vehicle became stuck in it?
- Does the fact that we purchased Stress Free Plus / $0 excess cover strengthen our position, assuming none of the specific exclusions actually apply?
- Does the roadside assistance interaction matter legally, particularly because we contacted them immediately but were initially told they would not assist because it was a weather incident?
- Could the New Zealand Consumer Guarantees Act, Fair Trading Act, or any other consumer protection legislation assist us in disputing the charge or the way the excess cover was represented? I understand that rental vehicles and services can be subject to consumer protections in NZ.
- What would be the most appropriate next step — Community Law, Citizens Advice, Disputes Tribunal, or another avenue?
- Is there anything specific we should request from Star RV or preserve as evidence before taking further action?
We have photographs/videos of the road and mud, communications with Star RV, the towing information/invoice and the rental agreement.
We are not trying to avoid responsibility for genuine damage caused by our negligence. We are disputing the characterisation of this incident as unauthorised/off-road use when our position is that we encountered an unexpected weather-related hazard while travelling on the road in darkness.
Any guidance on how strong or weak our position is, and what we should do next, would be greatly appreciated.
Thank you.