I use either an old wax cotton canvas courier bag, or a wax barbour fishing bag. Neither, for obvious reasons, look like a camera bag – but they keep the water out. The camera then goes into a neoprene cover to absorb any knocks and any lenses just go in their wee pouches that they come with.
Never had any problems with damage, and that is a 5D/5D mkII and Canon L glass.
I started down that route as when I am wandering around urban areas here and abroad I don't want to be advertising the fact I am carrying some pretty expensive photography gear.
Barbour This one is what I tend to use – costs a fair bit, but it was bought for me! The old one came from GAP for about £10.
The cheapest option is to get an old army messanger bag/gas mask bag and wax is yourself. It should look old and knackered and not worth the scrotes attention ideally 😉