Car rental abroad: understanding insurance coverage

Travel Insurance does not cover when you rent a car, motorcycle, moped, scooter, caravan, or mobile home for a holiday abroad. Neither do your IDA Car, Motorcycle, or Moped Insurance. 

Instead, you must take out insurance with the rental company.

Check the rental contract of the car or vehicle

Please remember to buy third-party liability and comprehensive coverage when renting a car or other vehicle abroad. 

In addition, insurance from the rental company should include roadside assistance if you get stuck on the way and paintwork or glass damage. 

The rental contract must contain information about the insurance you have purchased for the rental of the vehicle. Please read it carefully and pay particular attention to the excess. 

Remember to keep a copy of the insurance policy with you in case you need it on the way.

Extended Travel Insurance covers the excess

If you damage a rented car, motorbike, moped, or mobile home, the rental company's insurance will cover the vehicle. 

However, the insurance often has an excess that you can reimburse if you have Travel Insurance purchased AFTER 1.6.2022 with the Extended or Super versions or purchased BEFORE 1.6 2022 with the Extended Travel Insurance option.

The damage must be considered a comprehensive accident to get compensation. In other words:  

• If the vehicle suffers major or minor damaging blows from a collision.
• Parking damage.
• Road accident.
• Fire or theft/burglary.

To receive compensation:

• Buy third-party liability and comprehensive coverage for the vehicle.
• Rent the vehicle through an authorised rental company.
• You or your partner are on the rental contract.
• You or your partner are the drivers of the vehicle.
• You have the right to drive the vehicle in the country where you rented the car and those you pass through. For example, if you rent a car in one country and head to another country, you should always make sure that you are allowed to drive the car in both countries.

If you have Travel Insurance purchased AFTER 1.6.2022, the Travel Insurance also covers damage to scratches and paintwork on the vehicle. 

 If you have Extended Travel Insurance purchased BEFORE 1.6. 2022, it does not cover damage to scratches and paintwork on the vehicle or bills for roadside assistance/towing, e.g., in the event of a puncture. You should make sure this is part of your rental contract.

Check the rental car rental contract

When you rent a car or other vehicle abroad, you must always have Liability Insurance, Theft Insurance and Comprehensive Insurance on the vehicle. In addition, insurance on a rental car, motorcycle or other vehicles may also include roadside assistance if you break down on your trip, and paint or glass damage coverage.

The rental contract must contain information about the insurance you have purchased in connection with renting the vehicle. Read the rental contract carefully and pay special attention to how high the deductible is. When you rent a car, you need these insurances.

Here is a mini guide to the most commonly used terms for insurance in the rental contract:

• Liability insurance. Is usually included in the car rental. Is often called Liability Insurance (LI)
• Comprehensive insurance: Is usually included in the car rental. Called Collision Damage Insurance, Collision Damage Waiver or LDW: Loss Damage Waiver, which is typically comprehensive insurance including theft insurance
• Extra comprehensive insurance: You should check what is included in the comprehensive insurance that is included in the car rental. There may be things that comprehensive insurance does not cover, such as glass, lights, undercarriage or rims. These are damages that often happen, so it may be a good idea to supplement with extra comprehensive insurance
• Theft insurance: Is usually included in the car rental, called Theft Protection Coverage or Theft Waiver
• Excess insurance: This is called Super Collision Damage Waiver or Super Cover Damage Waiver. This is typically not included in the car rental price. With the insurance, you avoid being charged a deductible if there is damage to a car, motorcycle, scooter and moped that is your fault. Check if your travel insurance covers the deductible on the rental vehicle. If it does, you do not need this coverage. View your policy via Min Side.

Have a copy of the insurance policy with you in case you need it along the way.

Remember Travel and Home Contents Insurance

Your Home Contents Insurance covers you if you have items stolen from the cargo compartment, such as clothing and care products. However, it does not protect gold, jewellery, silver, money, and cash. Home contents insurance only covers if there is clear evidence of a break-in. 

Read more about Home Insurance

Your Travel Insurance covers you if you need repatriation, medical treatment, or hospitalisation following an accident.

Read more about Travel Insurance

Your Accident Insurance covers you if you get a permanent disability after an accident.

Read more about Accident Insurance

Good advice when renting a car or another means of transport on holiday

• Choose a rental company you trust. It could be a company recommended by your travel agent or a major international rental company, such as AVIS, Hertz, or Europcar.
• Check your car, motorcycle, moped, or motorhome when you get it, and take photos of any visual damage. In this way, you won't be liable for previous damage.
• If possible, return the vehicle when the rental company is open. It's the right moment to clarify doubts or get some answers to your questions.
• Remember to take photos of any damage you've done and make sure you have paperwork and receipts to prove it.

Get a discount on car rent abroad with IDA.

As an IDA member, you can get a 10% discount on AVIS in Denmark and 10% in Europe. 

Use your member benefit and get a discount