[Comparison of Self-Driving Tour Insurance in 2026] Does car rental insurance include deductibles? A summary of travel insurance and car rental coverage.
Author:
Kwiksure Team
Created On:
2026-02-10
Edited On:
2026-02-10
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Planning an overseas road trip? Rental car insurance might not be enough! Kwiksure compares 4 models of travel insurance, explains the maximum deductible coverage for car rentals, breaks down the differences between "car rental insurance" and "self-driving tour insurance," and details the insurance requirements and claims process for popular destinations like Japan and South Korea, allowing you to travel with peace of mind.
Do I need to buy travel insurance when renting a car for a self-drive tour? Basic car rental insurance VS. travel insurance
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.
|
Coverage |
Car rental insurance |
Travel insurance |
|
Vehicle body damage |
✓ |
✘ |
|
Third-party liability |
✓ (Subject to terms and conditions) |
✘ |
|
Personal medical insurance |
✘ |
✓ |
|
Self-paid amount |
✘ (To be borne by the individual) |
✓ (Reimbursement based on actual expenses) |
|
warranty period |
During car rental |
The whole journey |
What is the "car rental deductible"?
The deductible for car rentals, commonly known as the "deductible," refers to the maximum amount the insured must pay out of pocket in the event of an accident. If the repair costs exceed this amount, the excess will be covered by the insurance company; if the costs are below the maximum deductible, the renter must pay the full amount.
Breaking down common car rental company insurance: CDW, NOC, and third-party liability.
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.
Regional Guide: Which countries recommend purchasing additional third-party liability insurance?
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.
Self-driving tour insurance comparison 2026: Which travel insurance includes "car rental deductible"?
|
Comparison of popular self-driving tour insurance policies (HKD) |
|||
|
Insurance Plan |
Overseas medical insurance |
Personal accident insurance |
Car rental deductible protection |
|
Allianz Travel Insurance - Gold Plan (Single Travel Plan) See details of Insurance terms and conditions |
$2,000,000 |
Accidents that occur while using public transportation: Other unexpected events: |
$5,000 |
|
AXA's SmartTraveller Plus Privilege Plan See details of Insurance terms and conditions |
$1,000,000 |
$1,000,000 |
Deductible for car insurance and return fee for rented vehicle: $5,000 |
|
MSIG iTravel Go Travel Insurance Plan A See details of Insurance terms and conditions |
$2,000,000 |
$1,000,000 |
Car rental deductible: Return the rental vehicle: Check Hidden protection |
|
Bolttech Smart Travel Insurance - Abundance Plan See details of Insurance terms and conditions |
70 years old or below: $1,000,000 71 years or older: $500,000 |
Personal accidents encountered while using public transportation: $3,000,000 (18-70 years old) Other causes of personal injury: $1,500,000 (18-70 years old) |
$10,000 |
*The above information is for reference only as of February 10, 2026. All information is subject to the announcements of the relevant insurance companies.
Self-driving tour accident claims guide: How to claim deductible insurance for rental cars?
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
Beware of claim denials! Common exclusions from self-driving tour insurance.
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.
Frequently Asked Questions
If I bought full insurance from the car rental company, do I still need travel insurance for my self-driving tour?
Comprehensive car rental insurance typically includes a standard plan, collision damage liability (CDW), and Non-Operation Charge (NOC). It usually only covers third-party liability and does not cover personal injury or the death of the renter. Self-drive tour insurance offers overseas medical and personal accident coverage; in case of injury, claims can be made through the travel insurance. The deductible for car rentals can also cover the deductible expenses in comprehensive car rental insurance.
What are the differences in the claims process between car rental company insurance and travel insurance?
Before claiming compensation from the car rental company, the insured must report the accident, obtain an accident report with a report number, notify the rental company, and follow their instructions. Upon returning the car, an accident report must be signed, and the deductible and NOC (if applicable) must be paid on-site. Afterwards, depending on the travel insurance terms, the insured must prepare the rental agreement, insurance policy, accident report, repair order from the rental company, NOC fine receipt, and payment records, and submit a claim within 21 to 30 days of the accident.
Are there age restrictions for renting a car overseas?
The minimum age for renting a car is generally 21, but some companies require it to be 25 or older. Drivers under 25 may be subject to additional fees due to a perceived lack of driving experience.
Will travel insurance cover the rental car company's Non-Operation Charge (NOC)?
Travel insurance typically only covers losses due to accidental collisions and damage or theft, i.e., the CDW deductible; NOC coverage is not included. If NOC coverage is required, it must be purchased separately when renting a car.
