Does travel insurance cover car accidents?
Travel insurance often covers medical expenses resulting from car accidents abroad, but it usually does not include damage to vehicles or third-party liability unless clearly stated.
That distinction is where many travellers get caught out.
If you crash a hire car in Italy, end up in hospital after a taxi accident in Greece, or suffer whiplash while driving in France, your travel insurance will likely pay for your emergency care, hospital stay, and repatriation. In fact, medical treatment makes up over half of all travel insurance claims, with many tied to road traffic incidents. But if you’re expecting your policy to pay for the dented bumper or settle a legal dispute with another driver, you may be in for a surprise.
Most UK travel insurers don’t separate “car accidents” as a standalone category. These claims fall under broader medical or emergency sections, making it easy to assume you’re fully covered when you’re not. Standard travel insurance is not designed to act like car insurance. It doesn’t usually include collision damage waiver (CDW), nor does it offer cover for vehicle repair costs, legal liability, or lost rental deposits unless you’ve added specialist extras or purchased car hire insurance separately.
With more than 500,000 travel claims filed in 2024 and £472 million paid out, it’s clear that unexpected events on the road, especially in unfamiliar environments, are a real risk. Popular destinations like France account for 42 percent of UK car accident claims abroad, which shows this isn’t a fringe issue.
If you’re planning to drive overseas, even for a day or two, knowing what your policy includes and what it doesn’t is essential. What follows is a clear, scenario-based breakdown of how travel insurance interacts with car accidents, and what you need to check before turning the ignition.
What types of car accident claims are actually covered by travel insurance?
Travel insurance typically covers personal injury-related costs from car accidents abroad, but it does not cover vehicle damage, legal liability, or repair costs unless explicitly included.
The coverage is geared toward protecting your health, not the car you’re in.
Let’s say you’re in a taxi that crashes on the way to the airport, or you’re injured while driving a hire car on unfamiliar roads. In most standard UK travel insurance policies, the emergency medical treatment you need as a result of that accident will be covered. That includes hospital stays, outpatient care, repatriation, and in some cases, cancellation of the rest of your trip due to the injury.
However, the policy won’t help with damage to the vehicle, legal disputes with the other driver, or third-party costs. Those fall under entirely different types of cover. If you’re renting a car, this is where Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) comes in — sometimes included by the hire company, but often excluded unless you purchase it separately or through a premium travel insurance add-on.
Another area to consider is how the accident occurred. If alcohol or unlicensed driving is involved, your travel insurance may decline the claim altogether. Similarly, if you’re in a country where your driving licence isn’t valid or where additional permits are required, you may not be protected.
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Get QuotesHow does travel insurance cover medical expenses after a car accident abroad?
Travel insurance generally covers emergency medical expenses, hospital treatment, and repatriation if you’re injured in a car accident abroad.
This is one of the core functions of most policies and often the main reason people buy cover in the first place.
In 2025, medical treatment accounted for 51 percent of all travel insurance claims, and while insurers don’t always break out car accident data separately, a substantial portion of these cases involve road traffic injuries. From whiplash and fractures to more serious trauma requiring surgery or airlift evacuation, these costs can escalate quickly, especially in countries without public healthcare.
If you’re injured as a driver, a passenger, or even as a pedestrian involved in a road collision, your travel insurance will typically step in to cover immediate treatment. That includes ambulance services, A&E fees, scans, operations, and sometimes physiotherapy during recovery. In serious cases, where returning to the UK early is necessary, repatriation costs may also be covered, including medical escorts or air ambulance services.
One key point often overlooked is the cap on medical expenses. While some policies offer unlimited medical cover, others set firm limits. A £1 million limit may sound generous, but it can be reached surprisingly quickly in the United States or Switzerland. Always check this section carefully.
It’s also worth noting that pre-existing medical conditions could affect your claim, especially if the accident made them worse. If you’re taking medication for epilepsy, for instance, and a collision triggers complications, your claim could be refused if the condition wasn’t declared.
Do travel insurance policies cover vehicle damage or liability after an accident?
No, standard travel insurance does not cover vehicle damage, excess charges, or legal liability resulting from a car accident.
These types of costs are treated separately and usually require dedicated car hire insurance or an add-on policy.
This is the part most travellers misunderstand. You might assume that because your policy covers emergencies, it would also protect the hire car itself, or pay if you’re found legally responsible. In reality, the financial fallout from damaging a vehicle — or being sued — falls outside the scope of basic travel cover.
If you’re hiring a car abroad, the rental company may offer Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) at the counter. These reduce or eliminate your liability for repair costs, but they often come with high excess charges unless you pay for extra protection. Without that, you’re exposed. And if you think your travel insurance will step in, you’re likely mistaken unless you’ve added a rental vehicle excess reimbursement option — which is still relatively rare among standard UK policies.
Third-party liability is another blind spot. If you hit another vehicle and cause injury or damage, local laws apply, and you may be held personally responsible. Travel insurance won’t pay those legal costs unless you’ve purchased a policy with personal liability cover that includes motoring incidents, which most do not.
Even worse, many insurers include exclusions for driving-related claims unless the driver holds a valid licence in the relevant country, is listed on the rental agreement, and complies with all local laws. That includes having the correct permits, not drinking, and obeying local insurance requirements.
Tip: Never rely on travel insurance alone when renting a vehicle. Pair it with proper CDW or standalone car hire excess insurance. And always check for exclusions in the legal expenses or liability section of your policy.
Why where and how the accident happens changes everything
The country you’re in, the type of vehicle you’re driving, and whether you’re the driver or passenger all affect how your travel insurance responds to a car accident.
Location, role, and local law are often the deciding factors in whether a claim is paid or denied.
Let’s start with geography. If you’re injured in an EU country like France or Spain, most UK travel insurers will offer a clear pathway to claim. But if the accident happens somewhere with a less developed healthcare system or in a place not covered under your policy’s destination list, things become more complex. Some policies exclude high-risk regions entirely, and medical treatment in those areas might not be covered at all.
Next comes your role in the incident. Were you the driver, or a passenger? If you’re a passenger in a licensed taxi or rideshare, you’re more likely to be fully covered for personal injury. But if you’re behind the wheel of a hire car and breach any rental agreement terms — for example, by letting someone else drive or failing to use seat belts — you could void your cover.
It also matters whether you’re driving your own vehicle or a rented one. If you brought your own car across from the UK, travel insurance usually doesn’t apply to the car or any motoring-related liability. That’s still governed by your UK car insurance policy, which may or may not provide the same protection abroad.
Even something as simple as the presence of black ice on a mountain road in Switzerland versus a wet roundabout in Portugal could matter. Local police reports, fault determination, and applicable laws all influence how your insurer will interpret the claim.
Scenario spotlight:
- Case A: You hire a car in Italy, follow the rules, and are hit by another driver. Your medical bills are covered.
- Case B: You hire a car in Portugal, decline CDW, and back into a wall. Your travel insurance won’t pay for the repairs or the excess.
- Case C: You drive your own UK car in France, get injured, and claim medical expenses. Your travel insurer may cover you, but your car-related liability remains with your UK motor insurer.
How to check if you’re covered
To know if you’re covered for car accidents while abroad, you need to review your travel insurance policy for exclusions, liability limits, and rental vehicle clauses. Most people assume they’re protected until a claim is denied.
Start with the policy wording. Look for any section that mentions driving, hire cars, or accidents. If the only references to “accidents” relate to medical emergencies, that’s your first clue that vehicle damage or liability isn’t included. Pay close attention to how personal injury is treated — and whether any benefits change if you’re the driver.
Next, examine whether the policy offers rental car excess reimbursement. Some travel insurers now provide this as an optional extra. It means that if you damage a hire car and the rental company charges you an excess (which can be over £1,000 in some countries), you can claim that money back. Without this, you’re liable.
Check if the policy includes personal accident cover. This might offer a fixed payout if you suffer serious injury (such as permanent disability or loss of limb) during a motoring incident abroad. However, it won’t help with liability or repair costs.
Checklist: What to review before driving abroad
- Does your policy cover emergency medical expenses caused by road accidents?
- Is rental vehicle damage covered, or do you need to buy CDW from the hire company?
- Does your policy offer legal expenses or liability protection related to motoring?
- Are there geographical exclusions or limits based on your destination?
- Do you need an International Driving Permit or Green Card?
- Are you allowed to drive under the terms of your existing car insurance if using your own vehicle?
If any of the above are missing or unclear, consider adding standalone car hire excess insurance, which is relatively inexpensive, or upgrading to a policy that explicitly includes motor-related legal expenses.
Do UK travellers face unique risks when driving abroad?
Yes. UK travellers are more likely to encounter unfamiliar road laws, licensing requirements, and post-Brexit insurance changes that affect their protection when driving overseas.
These differences increase the chance of invalid claims or legal issues.
Let’s start with driving licences. In many EU countries, your UK licence is valid for short stays. But in others, or if you plan to stay longer than 90 days, you may need an International Driving Permit (IDP). If you’re caught driving without the correct documentation, any claim on your travel or car insurance could be declined.
Post-Brexit, the rules around car insurance have shifted. While the Green Card requirement was dropped for most travel within the EU, some insurers still advise carrying one as proof of motor insurance. Without it, you might struggle to prove cover in the event of a crash — especially if you’re driving your own UK car across borders.
If you’re hiring a car, some countries require extra documentation, especially if you use a debit card instead of a credit card. Not meeting those conditions might mean the vehicle isn’t properly insured through the hire company, and your own insurance won’t step in to fill the gap.
France is a key example. It’s one of the most common destinations for UK drivers, and it accounts for 42 percent of all UK driving-related insurance claims abroad. That makes sense given proximity, but also speaks to the complexity of navigating unfamiliar driving customs, language barriers, and roadside emergencies.
Other risks include:
- Misunderstanding local speed limits or right-of-way rules
- Getting into an accident and not following the correct local reporting process
- Assuming emergency healthcare is covered under GHIC/EHIC cards — which does not apply to motoring injuries in most cases
Driving abroad requires more than just navigation. It requires an understanding of how local law affects your cover, what your insurer expects of you
Final thoughts
Travel insurance does offer valuable protection if you’re injured in a car accident abroad, but it’s not a substitute for vehicle insurance or legal cover. Most policies will pay for your emergency medical treatment and repatriation, but very few will cover damage to the vehicle, hire car excess charges, or third-party liability unless you’ve added specific extras.
The data speaks for itself. More than 500,000 claims were filed in 2024, with medical emergencies accounting for the majority — and a significant number of those tied to road traffic incidents. Yet most travellers don’t realise how limited their cover is until they’re already dealing with an accident, a hospital bill, or a rental dispute in a foreign country.
The reality is that driving abroad adds risk. You’re more likely to face unfamiliar laws, different driving cultures, and insurance systems that don’t mirror the UK’s. That means it’s up to you to fill the gaps. Review your policy before you travel. If you’re hiring a car, consider a standalone excess insurance policy. If you’re using your own vehicle, check what your UK motor insurance covers once you leave the country.
In short, don’t assume you’re covered just because you bought a travel insurance policy. Look at the small print. Understand what’s excluded. And if in doubt, top up your protection before the trip starts — not after an accident has already happened.
Frequently Asked Questions (FAQs)
Yes, most policies cover emergency medical treatment, hospital costs, and repatriation after a car accident abroad.
No, standard travel insurance does not cover hire car damage. You’ll need CDW or a car hire excess policy for that.
No, your UK motor insurance must cover you. Travel insurance does not replace your car policy.
Travel insurance usually covers passengers for injury and medical care, but not for any vehicle damage.
Not usually. Most policies exclude motoring-related liability unless specifically added.
If you don’t meet local licensing laws, your claim may be refused — even for medical costs.
Yes. Collision Damage Waiver and excess reimbursement are not included in most travel policies.
No. These only cover state healthcare and may not apply to car crash injuries or repatriation.