[Comparison of Self-Driving Tour Insurance in 2026] Does car rental insurance include deductibles? A summary of travel insurance and car rental coverage.

Most Self-driving tour car rental companies offer basic insurance, primarily covering damage to the vehicle and theft, and some may also include third-party liability coverage. However, this coverage focuses on the vehicle itself and may not include medical or hospitalization coverage in the event of an accident. Furthermore, basic coverage often includes a high deductible, meaning renters will need to bear a portion of the cost themselves.

Travel insurance can serve as a complement, as travel insurance plans already include medical coverage during the trip. Policyholders can check whether the coverage includes deductible coverage for car rentals to cover the exclusions of car rental insurance.

Collision Damage Coverage (CDW)

Collision Damage Waiver (CDW) is an optional add-on coverage when renting a car. It waives the deductible that the customer must pay for the compensation amount. If the car is damaged in an accident while renting a car, the insurance company will cover the deductible set in the coverage. CDW's coverage does not include repair costs for damage to tires, windshield, roof, or chassis.

Non-Operation Charge (NOC)

If a car is involved in an accident and requires repairs or cleaning, the rental company will be unable to rent the vehicle during this period and will therefore claim Non-Operation Charge (NOC) to compensate the rental company for its business losses during the vehicle repair period. Even if you have already purchased CDW, you still need to pay NOC.

Third-Party Liability Insurance (ALI/SLI/TPL)

If the insured is involved in a vehicle accident that results in personal injury or property damage to a third party, third-party liability insurance can protect the insured's financial liability to the third party. Car rental companies usually already include minimum legal coverage for third-party liability.

Theft insurance

Theft insurance covers expenses exceeding the deductible incurred by the insured after their vehicle is stolen or robbed.

Japan/Korea road trip

Car rental in Japan is similar to that in South Korea. Companies typically provide mandatory insurance as required by law, which includes compensation for third-party death and injury, third-party property damage, vehicle damage, and passenger death and injury. However, renters usually need to pay a deductible to cover costs for third-party property damage and damage to the rental vehicle. It is recommended that renters purchase additional CDW (Collision Damage Waiver) and NOC (Non-Operation Charge) to avoid deductibles and compensation for the rental company's business losses in the event of an accident. Before purchasing these additional insurances, check your travel insurance plan to see if the deductible is covered; if so, you do not need to purchase CDW.

US/Canada road trip

In the United States, not all states mandate third-party liability coverage in rental car insurance. Therefore, you should check with the rental company to see if they offer this coverage. If not, you will need to purchase ALI (Agent Liability Insurance) separately. While Canada mandates third-party liability coverage, the minimum coverage amount varies by province, with a minimum of only CAD 200,000. If you find the basic coverage insufficient when renting a car, it is recommended to purchase ALI at the rental counter or online to increase the coverage to CAD 1 million to 2 million.

European/Australian self-drive tour

In Europe and Australia, car rentals generally include third-party liability insurance, theft and vehicle damage coverage. However, theft and vehicle damage coverage usually have a deductible. When renting a car, you can choose to add CDW and NOC coverage as needed to minimize the deductible, or purchase additional coverage for tires, windows, etc.

Whether it's a minor collision or a serious accident, you must notify the local police, obtain a police report and accident report, notify the car rental company, and gather all relevant documents, such as the rental receipt, rental insurance certificate, and NOC fine receipt. You can then file a claim with the insurance company during their claim period, which is generally 21 to 30 days after the accident.

Related documents

• Car rental receipt
• Car rental insurance certificate
• Police report
• Traffic accident report (including police report number, police station information, details of the incident, and the car rental company's reference number and seal).
• NOC fine receipt

1. Breach of the car rental agreement

If the insurance company discovers any breach of the rental agreement during the claims process, such as the vehicle being driven by an unauthorized driver or the insured not having a valid local driver's license, no compensation will be provided. Most rental car insurance policies only cover accidents occurring on regular roads; off-road driving, such as off-road driving, is highly likely to result in denial of compensation due to breach of the rental agreement. Insured individuals need to carefully review the contract terms.

2. Vehicle type restrictions

Most travel insurance plans have vehicle type requirements for rental coverage, such as requiring the rental of campervans, motorhomes, travel vehicles, or off-road vehicles not exceeding 4.5 tons from authorized car rental companies or agencies. However, this type of coverage largely only applies to car rentals and does not include motorcycles.

3. No alarm was triggered.

Most insurance companies will specify the insured in their terms and conditions. You must report the damage to the local police within 24 hours of the accident and provide a written document and report from the local police when making a claim. Therefore, even for minor accidents or small collisions, you should call the police immediately; otherwise, you may be refused compensation.

4. Driving under the influence of alcohol/drugs

Generally speaking, insurance companies will not compensate the insured for any accidents caused by alcohol or drugs, and driving under the influence of alcohol is also illegal, so insurance plans will not cover any illegal situations.