What is rental vehicle cover in travel insurance?

Rental vehicle cover travel insurance covers any expense you might incur upon hiring a vehicle when you travel overseas. With this kind of coverage, you won’t have to face the costly expense of car hire or car rental when a mishap occurs.

Whenever you travel abroad, having your own car is one of the most convenient means of transport especially when you have to face constant traffic. You don’t have to queue in for mass transport and wait too long to get to your destination. However, you may not be aware of car hire excess. Every time you rent a car, you have to pay for possible collision damage or loss. But in the case of an accident happening, you will be liable to pay any loss or damages known as the “excess.”

Since car rental cover can be very expensive, give or take a few thousands, having a car hire excess insurance can help you against the financial shock of paying for an excess.


Which insurance companies offer this coverage?

You should be aware though that not all travel insurance company provide rental vehicle cover in travel insurance plans. In the Philippines, BPI and Starr Insurance are the two top providers of car rental cover.

While car hire companies provide their own insurance for excess, getting one from your travel insurance company of choice is better since you only have to pay a premium for a comprehensive coverage. That is, you also get coverage for medical expenses, emergencies, and travel inconveniences. This is a lot better than just getting a standalone car hire excess insurance.

Another good reason why you should get a policy with a rental vehicle excess in travel insurance is that you are covered whether the accident is your fault or not. Aside from accidents, you also get coverage for damages and even stolen vehicles provided that the insurance company allows it.

BPI/MS Schengen and Non-Schengen Packages (Gold, Diamond, and Platinum)

With several insurance packages available, BPI/MS provides a comprehensive coverage inclusive of rental vehicle cover in travel insurance. BPI/MS provides a maximum of rental vehicle excess cover worth ₱10,000 and an additional ₱5,000 maximum for any other additional costs relating to your car hire cover. Premiums vary depending on the kind of insurance policy you want to get although BPI’s excess cover is available to both Schengen and non-Schengen packages. For non-Schengen packages, premiums per trip on Gold, Diamond, and Platinum plans are ₱598, ₱908, and ₱1,254 respectively. For Schengen Gold, Diamond, and Platinum plans, higher premiums are capped respectively at ₱652, ₱997, and ₱1,335.

You also get the added bonus of getting a minimum of ₱1M to a maximum of ₱3M for personal accident and a minimum-maximum bar of ₱1M to ₱2.5M for medical expenses while travelling.


Starr Insurance (Asia and Worldwide plans)

Starr Insurance offers cheaper alternative with lower premiums for rental vehicle cover travel insurance. With Starr Asia, you only have to pay a premium of ₱285 for a 3-day single trip in Asia and ₱1,120 for Starr Worldwide in any other destinations. Both already provide car hire excess insurance worth ₱5,000. But unlike BPI/MS, that is the only offer provided by Starr Insurance. No other additional cover benefit is given.

Still, you have the added benefit of ₱1M worth of cover benefit for personal accident and ₱500,000 worth for medical expenses while travelling under the Starr Asia plan. For Starr Worldwide, the cover benefit is capped higher at ₱2.5 for both.

*Go to www.gobear.com to use the insurance finder for accurate data on premium and coverage.

Need access to rental vehicle cover travel insurance anywhere in the world? Use GoBear Philippines to find and compare travel insurance for your travel needs.