Australian tourists hit with $7500 bill after campervan hits slip despite insurance cover

An Australian couple say they have been left stranded and facing a $7500 bill after their rental motorhome became stuck in a mud slip near Wānaka – despite having taken out what they understood to be the company’s most comprehensive zero-excess cover.

A significant winter storm battered the Queenstown Lakes District last week, causing widespread flooding, slips and road closures.

Wānaka recorded 45.6mm of rain in what MetService said was its wettest August day since 1992, while 45 people were evacuated in Queenstown following flooding.

The couple, who asked not to be named, were travelling towards Glendhu Bay on Mt Aspiring Rd early on August 28 when they say they encountered a slip in darkness.

They had initially planned to hike Roys Peak but changed their plans after seeing an avalanche warning, instead deciding to head towards Glendhu Bay to watch the sunrise.

“As we were going around the corner, we didn’t even see the slip,” the woman told the Herald.

The couple had been travelling towards Glendhu Bay to watch the sunrise when they encountered the slip on Mt Aspiring Road.

She said the couple contacted the roadside assistance service provided with their Jucy/Star RV rental twice after becoming stuck.

“They were like, ‘Oh, this is a natural disaster. We can’t help you’.

“We tried to ring them the second time and they said the same thing.”

She said locals attempted to help before the couple eventually arranged a private towing company themselves.

The couple said they had called roadside assistance twice after becoming stuck, but were initially told help could not be provided because it was a natural disaster.

“We realised we were stuck. They weren’t going to help us, so we found a private towing party.”

A third call to roadside assistance reached a different operator who was prepared to arrange help, she said, but by then the private tow operator was already on the way.

After the motorhome was pulled free, it would not start, despite attempts to jumpstart it.

The vehicle was eventually taken to a mechanic in Cromwell, who the couple said was unable to inspect it immediately but confirmed it was not driveable.

The couple said they had also been left paying towing, accommodation and transport costs, while changing their flights would have cost about another $1300.

The woman said Jucy/Star RV then told the pair their rental agreement had ended.

“They said, ‘Your rental agreement ends here. We’re not going to do anything for you guys from now on. You have to find your way, you have to do everything yourself and also pay the $7500’.

“So we were left stranded.”

She told the Herald that the mechanic had not yet determined what damage the motorhome had sustained.

The couple said JUCY/Star RV had sought about $7500 from them after the incident, despite their having taken out zero-excess cover.

“No, the mechanic hasn’t even had a chance to look at it,” she says she was told when asked whether they had been given an explanation of the damage.

She said the couple had taken out the “zero excess” option when renting the vehicle, the most comprehensive insurance from them.

“Obviously that was really stressful for us because we don’t know what’s happening and this is a large sum of our money.”

She said she had told the company they were struggling financially and would potentially need to arrange instalments if they were ultimately required to pay.

After arranging a private towing company themselves, the couple had the motorhome pulled free from the slip.

The couple said they had also been left to cover towing, accommodation, transport and other costs after losing the use of the campervan.

They had booked the motorhome for about $2900 and still had roughly a week remaining in New Zealand when the incident happened.

“We’re stuck in an Airbnb because we’ve had activities booked and things planned, but we’ve had to cancel and some are non-refundable because it’s so close,” she said.

“We’re not able to do anything but stay in the Airbnb because we’re scared that if we spend more money, this is all coming out of our pocket and we have to pay $7500 on top of this as well.”

The couple had married only a few months earlier and said the unexpected costs would have a significant financial impact.

“We’re stressed about how we’re going to recover and save up this money again.”

The couple were now considering cutting their trip short and returning to Australia, but said changing their flights would cost about another $1300.

“We’re just on a kind of cliffhanger of what’s going to happen next,” the woman said.

“We’re just trying to minimise our spending as much as we can because, at the end of the day, I don’t know what’s going to happen if we have to pay [the amount] and all of this isn’t going to be covered. It’s just adding more expense on top of everything we have to do.”

She said encountering the slip in darkness had itself been frightening.

“It was really scary because we didn’t know how thick the mud is and we don’t know if there’s going to be more of a mudslide that would come down on us.”

The couple have been seeking information about when the slip occurred and what warnings, if any, were in place on Mt Aspiring Rd at the time.

Jucy/Star RV said the company was continuing to work directly with the customer and remain in communication with them regarding their claims and the assessment process.

“As the matter is still being assessed and the customer has engaged legal representation, we’re unable to comment further on the specifics of the case or respond to the individual matters raised at this time,” the company said.

Ben Tomsett is a multimedia journalist based in Dunedin. He joined the Herald in 2023.