A road trip offers you the freedom and flexibility in planning your holiday, letting you visit places that are hard to get to by public transport. If you are planning a road trip in the coming holiday , make sure you have the right car insurance and travel insurance to enjoy a wonderful trip!
My friend Jason and his family just had a road trip in Korea. As Jason is familiar with the country and often drives in Hong Kong, Jason didn’t buy any travel insurance since car insurance was included in his car rental. When a heavy snow hit Korea on the third day of their trip, Jason accidentally scratched his rental car, while his wife twisted her ankle.
Jason thought he wouldn’t have to pay for the damage of the car because he has car insurance, but it turned out that the policy had a deductible. So Jason ended up paying the car rental company the HK$5,000 deductible . In addition, as they did not have travel insurance, he had to pay his wife’s medical bill of over HK$2,000. Luckily the injury was not serious , otherwise the amount would have been much higher. From Jason’s experience, we should keep the followings in mind before the next road trip:
1. Purchase travel insurance
Whether you are going on a road trip, self-guided tour or group tour, always take out a travel insurance policy. Remember, car insurance is different from travel insurance. Getting a travel insurance policy will protect you against losses caused by incidents such as delayed flights, family members falling ill or passing away, or bad weather.
2. Make sure that you have a third party liability coverage
Car rental companies generally provide car insurance, which fee is included in the rental package. Don’t forget to check the details of the policy and whether a third party liability coverage is included. If not, you will have to add that to your plan.
3. Mind the deductible term
Car insurance usually has a “deductible” – also called “excess” – which is the indemnity to be borne by the policyholder . As such, you may consider travel insurance plans that offer Rental Vehicle Excess coverage.
4. Understand the terms and exclusion clauses
You will not be covered by the insurance policy as per its exclusions, or if you have breached certain terms stipulated by the car rental company , such as driving under the influence of alcohol or drugs, or driving without a legal driving license.
5. Be well-prepared
Remember to bring your international driving permit and your Hong Kong driving license if you’re going on a road trip. Before the trip, familiarize yourself with the local traffic regulations, driving behaviour and weather. In the case of heavy fog, snowstorm or other extreme weather conditions, you should avoiding driving at all.
