Understanding excess insurance coverage

I received this email from UNI-CARE INTERNATIONAL TRAVEL INSURANCE CROMBIE LOCKWOOD (NZ) LIMITED:

We don’t provide any sort of cover for damage to the campervan itself or liability for damage to other peoples property  while using the campervan.  For this reason the hirer needs to take comprehensive insurance with the rental company but does not necessarily need to buy down the excess. We provide $5,000 rental vehicle excess cover – if the rental company has an excess above  $5,000 the hirer would need to buy this down or cover the additional themselves if they have an accident.

For your information I have copied below the NZ Visitor Plan policy wording in relation to Rental Vehicle Collision Damage and Theft Excess Cover.

SECTION 7: RENTAL VEHICLE COLLISION DAMAGE AND THEFT EXCESS COVER

We will reimburse You for any excess, deductible, or costs within the excess or deductible, for which You become legally liable to pay, limited to the sum listed in the Schedule of Benefits Payable, during the Period of Insurance in respect of loss or damage to a Rental Vehicle during the rental period.

CONDITIONS

1. The Rental Vehicle must be rented from a licensed rental agency.
 2. As part of the hiring arrangement You must take up the Rental Organisation’s comprehensive motor insurance for the duration of the rental period.
 3. You must comply with all of the requirements of the rental organisation under the hire agreement and of the insurer under the insurance.

EXCLUSIONS

We will not pay for:
 1. Loss or damage arising from the operation of the Rental Vehicle in violation of the terms of the rental or insurance agreement.
 2. Wear and tear, gradual deterioration, damage from insects or vermin, inherent vice or damage.
 3. The first $100 of any claim under this section of the Policy.

So, if I go with the standard free insurance coverage through Spaceships, I will have my bond/excess covered up to $5000.  The excess is $2000 on the campervan, so if an accident did happen, then I would only have to pay the $100 to Spaceships and hopefully Uni-care will cover the rest or I will get reimbursed at a later time.

Well this is basically canceling out a need for the Option 2 from Spaceships and that cost $875! 

Spaceships offers Windshield coverage for $175.  I might take this since we are going to likely be on some gravel roads.

I think I have this straight now and hopefully I will get a reassuring email from Spaceships stating the same.