(Comparability of Self-Driving Tour Insurance coverage in 2026) Does automobile rental insurance coverage embody deductibles? A abstract of journey insurance coverage and automobile rental protection.

February 10, 2026

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Planning an abroad street journey? Rental automobile insurance coverage won’t be sufficient! Mercury hours compares 4 fashions of journey insurance coverageexplains the utmost deductible protection for automobile leases, breaks down the variations between “automobile rental insurance coverage” and “self-driving tour insurance coverage,” and particulars the insurance coverage necessities and claims course of for fashionable locations like Japan and South Korea, permitting you to journey with peace of thoughts.

Most Self-driving tour automobile rental corporations supply fundamental insurance coverage, primarily protecting harm to the automobile and theft, and a few may embody third-party legal responsibility protection. Nonetheless, this protection focuses on the automobile itself and will not embody medical or hospitalization protection within the occasion of an accident. Moreover, fundamental protection usually features a excessive deductible, which means renters might want to bear a portion of the fee themselves.

Journey insurance coverage can function a complement, as journey insurance coverage already embody medical protection through the journey. Policyholders can examine whether or not the protection contains deductible protection for automobile leases to cowl the exclusions of automobile rental insurance coverage.

What’s the “automobile rental deductible”?

The deductible for automobile leases, generally often known 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 can be lined by the insurance coverage firm; if the prices are under the utmost deductible, the renter should pay the total quantity.

Breaking down widespread automobile rental firm insurance coverage: CDW, NOC, and third-party legal responsibility.

Collision Harm Protection (CDW)

Collision Harm Waiver (CDW) is an elective add-on protection when renting a automobile. It waives the deductible that the shopper should pay for the compensation quantity. If the automobile is broken in an accident whereas renting a automobile, the insurance coverage firm will cowl the deductible set within the protection. CDW’s protection doesn’t embody restore prices for harm to tires, windshield, roof, or chassis.

Non-Operation Cost (NOC)

If a automobile is concerned in an accident and requires repairs or cleansing, the rental firm can be unable to lease the automobile throughout this era and can subsequently declare Non-Operation Cost (NOC) to compensate the rental firm for its enterprise losses through the automobile restore interval. Even when you have already bought CDW, you continue to have to pay NOC.

Third-Social gathering Legal responsibility Insurance coverage (ALI/SLI/TPL)

If the insured is concerned in a automobile accident that ends in private harm or property harm to a 3rd get together, third-party legal responsibility insurance coverage can shield the insured’s monetary legal responsibility to the third get together. Automotive rental corporations often 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 automobile is stolen or robbed.

Regional Information: Which nations suggest buying further third-party legal responsibility insurance coverage?

Japan/Korea street journey

Automotive rental in Japan is much like that in South Korea. Firms usually present necessary insurance coverage as required by legislation, which incorporates compensation for third-party demise and harm, third-party property harm, automobile harm, and passenger demise and harm. Nonetheless, renters often have to pay a deductible to cowl prices for third-party property harm and harm to the rental automobile. It is suggested that renters buy further CDW (Collision Harm 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 further insurances, examine your journey insurance coverage plan to see if the deductible is roofed; if that’s the case, you do not want to buy CDW.

US/Canada street journey

In the USA, not all states mandate third-party legal responsibility protection in rental automobile insurance coverage. Subsequently, you need to examine 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. In case you discover the fundamental protection inadequate when renting a automobile, it’s endorsed 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, automobile leases typically embody third-party legal responsibility insurance coverage, theft and automobile harm protection. Nonetheless, theft and automobile harm protection often have a deductible. When renting a automobile, you’ll be able to select so as to add CDW and NOC protection as wanted to attenuate the deductible, or buy further protection for tires, home windows, and so on.

Self-driving tour insurance coverage comparability 2026: Which journey insurance coverage contains “automobile rental deductible”?

Comparability of fashionable self-driving tour insurance coverage insurance policies (HKD)

Insurance coverage Plan

Abroad medical insurance coverage

Private accident insurance coverage

Automotive rental deductible safety

Allianz Journey Insurance coverage – Gold Plan (Single Journey Plan)

See particulars of Insurance coverage phrases and situations

$2,000,000

Accidents that happen whereas utilizing public transportation:
$1,200,000

Different sudden occasions:
$600,000

$5,000

AXA’s SmartTraveller Plus Privilege Plan

See particulars of Insurance coverage phrases and situations

$1,000,000

Deductible for automobile insurance coverage and return charge for rented automobile: $5,000

MSIG iTravel Go Journey Insurance coverage Plan A

See particulars of Insurance coverage phrases and situations

$2,000,000

$1,000,000

Automotive rental deductible:
$10,000

Return the rental automobile:
$2,500

Examine Hidden safety

Bolttech Good Journey Insurance coverage – Abundance Plan

See particulars of Insurance coverage phrases and situations

70 years previous or under:

$1,000,000

71 years or older:

$500,000

Private accidents encountered whereas utilizing public transportation:

$3,000,000 (18-70 years previous)
$1,500,000 (below 18 and over 70)

Different causes of non-public harm:

$1,500,000 (18-70 years previous)
$750,000 (below 18 and over 70)

$10,000

*The above info is for reference solely as of February 10, 2026. All info is topic to the bulletins of the related insurance coverage corporations.

Self-driving tour accident claims information: The best way to declare deductible insurance coverage for rental automobiles?

Whether or not it is a minor collision or a critical accident, you could notify the native police, get hold of a police report and accident report, notify the automobile rental firm, and collect all related paperwork, such because the rental receipt, rental insurance coverage certificates, and NOC wonderful receipt. You’ll be able to then file a declare with the insurance coverage firm throughout their declare interval, which is usually 21 to 30 days after the accident.

Associated paperwork

Automotive rental receipt

Automotive rental insurance coverage certificates

Police report

Site visitors accident report (together with police report quantity, police station info, particulars of the incident, and the automobile rental firm’s reference quantity and seal).

NOC wonderful receipt

Watch out for declare denials! Widespread exclusions from self-driving tour insurance coverage.

1. Breach of the automobile rental settlement

If the insurance coverage firm discovers any breach of the rental settlement through the claims course of, such because the automobile being pushed by an unauthorized driver or the insured not having a legitimate native driver’s license, no compensation can be offered. Most rental automobile insurance coverage insurance policies solely cowl accidents occurring on common roads; off-road driving, reminiscent of off-road driving, is very more likely to end in denial of compensation resulting from breach of the rental settlement. Insured people have to rigorously assessment the contract phrases.

2. Automobile sort restrictions

Most journey insurance coverage have automobile sort necessities for rental protection, reminiscent of requiring the rental of campervans, motorhomes, journey automobiles, or off-road automobiles not exceeding 4.5 tons from approved automobile rental corporations or businesses. Nonetheless, one of these protection largely solely applies to automobile leases and doesn’t embody bikes.

3. No alarm was triggered.

Most insurance coverage corporations will specify the insured of their phrases and situations. You have to report the harm 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, you need to name the police instantly; in any other case, it’s possible you’ll be refused compensation.

4. Driving drunk/medication

Typically talking, insurance coverage corporations won’t compensate the insured for any accidents attributable to alcohol or medication, and driving drunk can also be unlawful, so insurance coverage won’t cowl any unlawful conditions.

Often Requested Questions

If I purchased full insurance coverage from the automobile rental firm, do I nonetheless want journey insurance coverage for my self-driving tour?

Complete automobile rental insurance coverage usually contains a normal plan, collision harm legal responsibility (CDW), and Non-Operation Cost (NOC). It often solely covers third-party legal responsibility and doesn’t cowl private harm or the demise of the renter. Self-drive tour insurance coverage presents abroad medical and private accident protection; in case of harm, claims could be made by means of the journey insurance coverage. The deductible for automobile leases can even cowl the deductible bills in complete automobile rental insurance coverage.

What are the variations within the claims course of between automobile rental firm insurance coverage and journey insurance coverage?

Earlier than claiming compensation from the automobile 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 automobile, an accident report have to be signed, and the deductible and NOC (if relevant) have to 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 wonderful receipt, and fee information, and submit a declare inside 21 to 30 days of the accident.

Are there age restrictions for renting a automobile abroad?

The minimal age for renting a automobile is usually 21, however some corporations require it to be 25 or older. Drivers below 25 could also be topic to further charges resulting from a perceived lack of driving expertise.

Will journey insurance coverage cowl the rental automobile firm’s Non-Operation Cost (NOC)?

Journey insurance coverage usually solely covers losses resulting from unintentional collisions and harm or theft, i.e., the CDW deductible; NOC protection isn’t included. If NOC protection is required, it have to be bought individually when renting a automobile.