Guides / Injuries, illness, delays and lost bags
Car accident on vacation: what travel insurance covers (and what it doesn't)
The short answer
After a car accident on a trip, three different things need paying. Your injuries are covered by travel insurance's emergency medical benefit. The rental car is covered by a rental car damage add-on, your credit card, or the rental company's waiver. Damage or injury to others is liability, which travel insurance doesn't cover; it comes from your auto policy (in the U.S.) or local insurance bought with the rental (abroad).
Three bills, three sources
| Bill | Who usually pays |
|---|---|
| Your medical treatment and evacuation | Travel insurance (emergency medical), or your health plan at home |
| Damage to the rental car | Rental car add-on on a travel plan, credit card cover, or the rental company's damage waiver |
| Damage or injuries to other people | Liability insurance: your U.S. auto policy at home; local liability insurance abroad |
In the U.S.
On a domestic road trip, your own auto insurance often extends to rental cars, and your health insurance covers injuries. Travel insurance adds cancellation, delay and interruption cover, and can include a rental car damage add-on so you don't have to claim on your own auto policy.
Abroad
- Your U.S. auto policy generally doesn't cover you outside the U.S. (Canada is a common exception).
- Liability insurance is usually included with the rental or required at the counter. In Mexico, Mexican liability insurance is required.
- Your injuries are covered by travel medical insurance, which matters because your U.S. health plan may pay little abroad.
Watch out: many plans exclude injuries if you were driving without a valid license, under the influence, or riding a motorbike or scooter without the right license. In some countries you also need an International Driving Permit.
If you're in an accident
- Check for injuries and call local emergency services.
- Call the police; many rental companies and insurers require a police report.
- Photograph the scene, both cars, plates and the other driver's documents.
- Call the rental company's emergency line.
- Call your travel insurer's assistance line if anyone needs medical care.
- Don't sign anything you can't read. Ask for a translation.
Common questions
Does travel insurance cover rental car damage?
Only if your plan includes a rental car damage benefit, usually as an add-on. Your credit card may also cover it.
Am I covered if I'm a passenger in a taxi or bus accident?
Your injuries are covered under emergency medical, as with any accident.
Does travel insurance cover me if the accident was my fault?
Your own medical treatment is usually covered regardless of fault, unless an exclusion such as drunk driving applies. Liability to others isn't covered by travel insurance.
This guide is general information, not insurance, legal or medical advice. Cover, prices and rules vary by insurer, plan, state and country, and they change. Read the policy wording, and check official sources for entry and passenger-rights rules, before you buy or travel.