Planning an abroad street journey? Rental automotive insurance coverage may not be sufficient! Kwiksure compares 4 fashions of journey insurance coverage, explains the utmost deductible protection for automotive leases, breaks down the variations between “automotive rental insurance coverage” and “self-driving tour insurance coverage,” and particulars the insurance coverage necessities and claims course of for in style locations like Japan and South Korea, permitting you to journey with peace of thoughts.
Most Self-driving tour automotive rental corporations supply fundamental insurance coverage, primarily masking injury to the car and theft, and a few can also embody third-party legal responsibility protection. Nevertheless, this protection focuses on the car itself and will not embody medical or hospitalization protection within the occasion of an accident. Moreover, fundamental protection typically features a excessive deductible, which means renters might want to bear a portion of the price themselves.
Journey insurance coverage can function a complement, as journey insurance coverage already embody medical protection through the journey. Policyholders can test whether or not the protection contains deductible protection for automotive leases to cowl the exclusions of automotive rental insurance coverage.
What’s the “automotive rental deductible”?
The deductible for automotive leases, generally referred to as the “deductible,” refers back to the most quantity the insured should pay out of pocket within the occasion of an accident. If the restore prices exceed this quantity, the surplus will likely be coated by the insurance coverage firm; if the prices are under the utmost deductible, the renter should pay the complete quantity.
Breaking down frequent automotive rental firm insurance coverage: CDW, NOC, and third-party legal responsibility.
Collision Injury Protection (CDW)
Collision Injury Waiver (CDW) is an elective add-on protection when renting a automotive. It waives the deductible that the shopper should pay for the compensation quantity. If the automotive is broken in an accident whereas renting a automotive, the insurance coverage firm will cowl the deductible set within the protection. CDW’s protection doesn’t embody restore prices for injury to tires, windshield, roof, or chassis.
Non-Operation Cost (NOC)
If a automotive is concerned in an accident and requires repairs or cleansing, the rental firm will likely be unable to lease the car throughout this era and can due to this fact declare Non-Operation Cost (NOC) to compensate the rental firm for its enterprise losses through the car restore interval. Even when you’ve got already bought CDW, you continue to have to pay NOC.
Third-Celebration Legal responsibility Insurance coverage (ALI/SLI/TPL)
If the insured is concerned in a car accident that leads to private damage or property injury to a 3rd occasion, third-party legal responsibility insurance coverage can defend the insured’s monetary legal responsibility to the third occasion. Automotive rental corporations normally already embody minimal authorized protection for third-party legal responsibility.
Theft insurance coverage
Theft insurance coverage covers bills exceeding the deductible incurred by the insured after their car is stolen or robbed.
Regional Information: Which international locations advocate buying extra third-party legal responsibility insurance coverage?
Japan/Korea street journey
Automotive rental in Japan is just like that in South Korea. Corporations usually present necessary insurance coverage as required by regulation, which incorporates compensation for third-party demise and damage, third-party property injury, car injury, and passenger demise and damage. Nevertheless, renters normally have to pay a deductible to cowl prices for third-party property injury and injury to the rental car. It is strongly recommended that renters buy extra CDW (Collision Injury Waiver) and NOC (Non-Operation Cost) to keep away from deductibles and compensation for the rental firm’s enterprise losses within the occasion of an accident. Earlier than buying these extra insurances, test your journey insurance coverage plan to see if the deductible is roofed; in that case, you don’t want to buy CDW.
US/Canada street journey
In the USA, not all states mandate third-party legal responsibility protection in rental automotive insurance coverage. Subsequently, it is best to test with the rental firm to see if they provide this protection. If not, you will want to buy ALI (Agent Legal responsibility Insurance coverage) individually. Whereas Canada mandates third-party legal responsibility protection, the minimal protection quantity varies by province, with a minimal of solely CAD 200,000. If you happen to discover the essential protection inadequate when renting a automotive, it is suggested to buy ALI on the rental counter or on-line to extend the protection to CAD 1 million to 2 million.
European/Australian self-drive tour
In Europe and Australia, automotive leases typically embody third-party legal responsibility insurance coverage, theft and car injury protection. Nevertheless, theft and car injury protection normally have a deductible. When renting a automotive, you’ll be able to select so as to add CDW and NOC protection as wanted to attenuate the deductible, or buy extra protection for tires, home windows, and so on.
Self-driving tour insurance coverage comparability 2026: Which journey insurance coverage contains “automotive rental deductible”?
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Comparability of in style self-driving tour insurance coverage insurance policies (HKD)
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Insurance coverage Plan
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Abroad medical insurance coverage
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Private accident insurance coverage
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Automotive rental deductible safety
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Allianz Journey Insurance coverage – Gold Plan (Single Journey Plan)
See particulars of Insurance coverage phrases and circumstances
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$2,000,000
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Accidents that happen whereas utilizing public transportation:
Different sudden occasions:
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$5,000
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AXA’s SmartTraveller Plus Privilege Plan
See particulars of Insurance coverage phrases and circumstances
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$1,000,000
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$1,000,000
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Deductible for automotive insurance coverage and return price for rented car: $5,000
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MSIG iTravel Go Journey Insurance coverage Plan A
See particulars of Insurance coverage phrases and circumstances
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$2,000,000
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$1,000,000
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Automotive rental deductible:
Return the rental car:
Examine Hidden safety
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Bolttech Good Journey Insurance coverage – Abundance Plan
See particulars of Insurance coverage phrases and circumstances
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70 years previous or under:
$1,000,000
71 years or older:
$500,000
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Private accidents encountered whereas utilizing public transportation:
$3,000,000 (18-70 years previous)
Different causes of private damage:
$1,500,000 (18-70 years previous)
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$10,000
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*The above data is for reference solely as of February 10, 2026. All data is topic to the bulletins of the related insurance coverage corporations.
Self-driving tour accident claims information: Find out how to declare deductible insurance coverage for rental vehicles?
Whether or not it is a minor collision or a severe accident, it’s essential to notify the native police, get hold of a police report and accident report, notify the automotive rental firm, and collect all related paperwork, such because the rental receipt, rental insurance coverage certificates, and NOC high-quality receipt. You may then file a declare with the insurance coverage firm throughout their declare interval, which is mostly 21 to 30 days after the accident.
Associated paperwork
- Automotive rental receipt
- Automotive rental insurance coverage certificates
- Police report
- Visitors accident report (together with police report quantity, police station data, particulars of the incident, and the automotive rental firm’s reference quantity and seal).
- NOC high-quality receipt
Watch out for declare denials! Frequent exclusions from self-driving tour insurance coverage.
1. Breach of the automotive rental settlement
If the insurance coverage firm discovers any breach of the rental settlement through the claims course of, such because the car being pushed by an unauthorized driver or the insured not having a sound native driver’s license, no compensation will likely be offered. Most rental automotive insurance coverage insurance policies solely cowl accidents occurring on common roads; off-road driving, corresponding to off-road driving, is very more likely to lead to denial of compensation resulting from breach of the rental settlement. Insured people have to fastidiously assessment the contract phrases.
2. Car kind restrictions
Most journey insurance coverage have car kind necessities for rental protection, corresponding to requiring the rental of campervans, motorhomes, journey automobiles, or off-road automobiles not exceeding 4.5 tons from licensed automotive rental corporations or businesses. Nevertheless, one of these protection largely solely applies to automotive leases and doesn’t embody bikes.
3. No alarm was triggered.
Most insurance coverage corporations will specify the insured of their phrases and circumstances. You need to report the injury to the native police inside 24 hours of the accident and supply a written doc and report from the native police when making a declare. Subsequently, even for minor accidents or small collisions, it is best to name the police instantly; in any other case, you might be refused compensation.
4. Driving inebriated/medicine
Typically talking, insurance coverage corporations is not going to compensate the insured for any accidents attributable to alcohol or medicine, and driving inebriated can be unlawful, so insurance coverage is not going to cowl any unlawful conditions.
Ceaselessly Requested Questions
If I purchased full insurance coverage from the automotive rental firm, do I nonetheless want journey insurance coverage for my self-driving tour?
Complete automotive rental insurance coverage usually contains an ordinary plan, collision injury legal responsibility (CDW), and Non-Operation Cost (NOC). It normally solely covers third-party legal responsibility and doesn’t cowl private damage or the demise of the renter. Self-drive tour insurance coverage provides abroad medical and private accident protection; in case of damage, claims might be made via the journey insurance coverage. The deductible for automotive leases can even cowl the deductible bills in complete automotive rental insurance coverage.
What are the variations within the claims course of between automotive rental firm insurance coverage and journey insurance coverage?
Earlier than claiming compensation from the automotive rental firm, the insured should report the accident, get hold of an accident report with a report quantity, notify the rental firm, and comply with their directions. Upon returning the automotive, an accident report should be signed, and the deductible and NOC (if relevant) should be paid on-site. Afterwards, relying on the journey insurance coverage phrases, the insured should put together the rental settlement, insurance coverage coverage, accident report, restore order from the rental firm, NOC high-quality receipt, and fee data, and submit a declare inside 21 to 30 days of the accident.
Are there age restrictions for renting a automotive abroad?
The minimal age for renting a automotive is mostly 21, however some corporations require it to be 25 or older. Drivers beneath 25 could also be topic to extra charges resulting from a perceived lack of driving expertise.
Will journey insurance coverage cowl the rental automotive firm’s Non-Operation Cost (NOC)?
Journey insurance coverage usually solely covers losses resulting from unintended collisions and injury or theft, i.e., the CDW deductible; NOC protection shouldn’t be included. If NOC protection is required, it should be bought individually when renting a automotive.