What Insurance Should I Get When Renting a Car?

It is not a secret that vehicles are expensive in Singapore. Just like purchasing a car, it is important to get the proper coverage when you rent a car to avoid any costly financial mishaps. Therefore, it is good to be fully informed about the various insurance options you can get. 

When looking for a cheap car rental in Singapore, you may come across the option of rental car insurance being offered at the counter. This type of insurance covers the rental vehicle in the event of a traffic accident, which protects the renter from forking out hefty sums of damage repairs costs. 

Usually, the car rental company purchases rental car insurance before providing the vehicle for rental. As such the renter renting the car would not be required to purchase additional rental car insurance to cover the vehicle. 

What Rental Car Insurance typically covers:

Collision Damage Waiver: Covers you if your rental car is stolen, vandalized, or damaged during a car accident.

Theft Protection: Covers the cost of replacing the rental car if it’s stolen, and repairs needed for the car if it gets damaged when someone attempts to steal it.

Third-Party Liability: Covers you in the event of personal injuries or material damages to a third party in a rental car accident you have caused.

Personal Accident Protection: Covers the medical costs for you and your passengers if they have sustained personal injuries during a rental car accident.

Limitations of Car Rental in Singapore Cheapest Insurance

Though rental car insurance can be helpful in deterring the car rental company from pursuing you for repairs and losses, this coverage can have its limitations as well.

When renting a car, renters are typically liable to pay for a car rental excess. To offset cheaper rental car insurance premiums, certain car rental companies might impose a higher excess to the renter if he/she damages the car during the rental period. As such renters are still liable to pay for minor damages and repairs in the event of accidents.

What Other Insurance to Consider Getting

For better financial protection, here is some additional coverage that you can get alongside rental car insurance:

Tire and Windshield Coverage

Most of the time, the collision damage waiver will not cover tires, wheels, and windshield damages. In the event of flat tires or damaged rims, renters would commonly be expected to pay for such damages incurred. To prevent such a thing from occurring, it is ideal for people to opt for this coverage so that there is no deduction if any damage to those features happens.

Travel Insurance

This type of insurance is particularly useful if the renter from Singapore is intending to travel out to Malaysia. Some car rental companies limit their area of coverage to Singapore only, meaning that their rental car insurance will be invalidated the moment the rental car is driven outside of the country. However, if the rental car is permitted to be driven overseas, there are still certain restrictions to what the car insurance can fully cover.

An excellent travel insurance policy can help cover various areas such as medical emergency expenses, travel plan disruptions, damage/theft, and even car rental excess.

Ultimately, it is always a good idea to pay for additional insurance when you rent a car. If you can afford to pay the expenses, always opt for full coverage to protect yourself from the pain of losing massive sums after an unforeseen accident.