The Bay of Islands Coastguard skipper Andre Pieterse said the volunteer crew were able to respond quickly as the skipper of the damaged boat had activated a locator beacon to raise the alarm.
"Our first priority was to get the people to safety ... the boat was definitely taking on water," Mr Pieterse said.
"The skipper was happy to make his way back to shore and they followed us because they didn't really know the area."
"It's also a timely reminder for boaties to make sure that, along with life jackets and at least two forms of waterproof communication, they also have the proper navigational equipment aboard, which would've helped this trio avoid the collision."
It's been a busy summer season for the Bay of Islands Coastguard with two serious incidents one involving the death of a diver and the other the recovery of a woman who fell from a boat and drowned.
Mr Pieterse said there had also been numerous calls to help boaties who had issues related to a lack of maintenance of their vessels.