My friends (all 27-29 years old) and I are taking a one-month road trip across Europe, starting in Spain and ending in Portugal. We’ll be renting a car for the entire journey. What should we look for in a travel insurance policy to ensure we’re fully covered for such an extensive road trip? Does the policy need to specify long-term car rental, and how does it cover potential issues like breakdowns or accidents in different countries?

Imraan

When embarking on an extensive road trip across Europe, such as your planned month-long journey from Spain to Portugal, selecting the right travel insurance policy tailored to your road trip needs can significantly enhance your travel experience. A well-rounded travel policy not only safeguards against financial loss, but also provides the confidence to explore the trip with peace of mind.

Here are some key factors to consider to ensure you have a trusted travel partner while travelling abroad to meet your unique insurance needs.

Car rental cover: Ensure the policy covers car rentals, particularly for long-term rentals, as standard travel insurance may not extend to a month-long duration. Look for a policy that covers:

Liability protection: This covers damages to other vehicles or property in case of an accident.

Collision damage waiver (CDW): This can limit your financial liability in case the rental car is damaged or stolen.

Personal accident insurance: Provides coverage for medical expenses resulting from accidents.

It is important to look for a policy that offers adequate medical coverage, including emergency medical expenses and evacuation. This is essential, especially when travelling abroad, as every country has different healthcare ecosystem.

Additionally, since your trip will span several countries, breakdowns can happen unexpectedly, and in a foreign country, the costs and logistics of arranging for roadside assistance or towing can be overwhelming. Hence, you should look for a policy that covers driving in all countries you plan to visit, as some policies may have geographical restrictions. In addition, look for a policy that provides coverage for damage, roadside assistance and even towing in case your rental car becomes undriveable due to a breakdown or accident.

Rental vehicle return: This optional extension, if included in your policy, covers the cost of returning the vehicle late due to damage or collision. For example, if your car is damaged and can’t be returned on time, the rental company might charge late-return fees, which this cover will indemnify you for. This is particularly useful if you’re travelling far away on a road trip and need to return the vehicle in a different country, as such fees can quickly add up.

While purchasing a policy, it is important to also read policy terms and exclusions, if any. Common exclusions include driving under the influence, unauthorised drivers, or using the vehicle for prohibited activities. Understanding these can help avoid surprises during your trip and give you peace of mind, knowing that you’re fully protected against any unexpected bumps along the way. With these covers in place, you’ll be well-insured for your European adventure.

The writer is Head - Health, Operations & Services at ICICI Lombard

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