Must Read Guide: Insurance For Car Rental In Singapore
- December 6, 2022
- 2:34 pm
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You’ve got your rental car and are ready to start your trip. You probably would ask yourself, “what insurance should I get when renting a car?”.
Car insurance is meant to cover the rental car in case it gets into an accident. Most of the time, the car rental company buys car rental insurance before renting out the car. Here’s a guide to help you with your car rental needs.
Car Rental Insurance
Types of rental car insurance:
Collision Damage Waiver: Coverage for theft, vandalism, and collision damage to your rental vehicle.
Theft Protection: Protection against theft includes the cost of replacing a stolen rental vehicle and any repairs necessitated by an attempted theft.
Third-Party Liability: Coverage for bodily injury or property damage to a third party as a result of an accident you cause while driving a rented vehicle is known as third-party liability.
Personal Accident Insurance: Protects you and your passengers from financial hardship in the event of an accident while driving a rented car.
What Other Insurance Should Be Considered?
1. Windshield And Tires
Tire, wheel, and windshield damage are typically not covered by collision damage waivers. Renters are typically expected to cover repairing or replacing damaged parts, such as flat tires or bent rims.
People should choose this coverage so that they will not be financially responsible for the repairs if any damage occurs to those features.
This is probably because flat tires and cracked windshields happen often, so many insurance companies leave them out to keep their overall premiums low. But if you don’t want to risk paying for damage to both of these parts, make sure your policy covers them.
2. Travel Insurance
This type of insurance is highly recommended for renters who want to travel outside Singapore. However, the insurance coverage provided by some rental car companies is only valid within Singapore’s borders and becomes null and void when the rented vehicle leaves the country.
A good travel insurance policy can cover medical expenses, trip cancellation fees, lost luggage, and even car rental excess. Extra insurance coverage is always a wise investment when renting a car. Always choose full coverage, as this will protect you from the financial hardship of losing a sizable amount due to an accident.
3. Rental Car Requirement
Getting behind the wheel of a rental car from some companies requires meeting stringent requirements.
1. The minimum age to obtain a licence (younger drivers may be barred from obtaining one).
2. The minimum number of years of driving experience.
3. The type of licence
Note: An International Driving Permit is useful if you intend to drive while on vacation in another country (IDP). The International Driving Permit is a translation of your domestic licence. The IDP permits drivers to operate motor vehicles in foreign countries. You must always carry both your IDP and your national driver’s licence. Visit AA Singapore to obtain an International Driving Permit in Singapore.
4. Register Your Co-Driver
If a friend or family member will drive the rental car at some point, register them when you obtain car insurance.
While this will increase your insurance premiums – particularly if your co-driver(s) are young males with less than two years of driving experience – it is preferable to still register and pay for your co-driver..
In the event of an accident involving an uninsured driver, your auto insurance is automatically nullified, leaving you with no coverage whatsoever. Depending on the severity of the incident, this could be catastrophic or even financially ruinous.
5. Excess
The amount you must pay out of pocket before filing a claim with the insurance company is referred to as the “excess.” Most Singaporean insurers base their quotes on an excess of $500 or $600.
Both “excess” and premiums are costs you bear, so when comparing auto insurance quotes, you should consider both factors holistically. There is no point in being enticed by a car insurance policy with a low premium but a high deductible (such as $1,000 or more) if you end up in an accident.
Contact us to learn more and to better assist you with your car rental insurance needs.
6. Workshops
In most cases, your auto insurer will require you to take your vehicle to a service centre that they have pre-vetted and approved. In this way, you and your car insurance company can rest easy about the cost and quality of the repairs.
If you want to have your vehicle serviced at a specific repair facility, however, or if you simply want more options, you’ll need to select a plan that allows you to do so. Plans that cover maintenance at any garage will likely cost more than those that don’t.
7. Roadside Assistance
Do you think it would put your mind at ease to know that you could call for help whenever you needed it if you were involved in an accident?
If so, you should verify that your car insurance policy includes 24-hour roadside assistance. This could be especially helpful for inexperienced drivers who aren’t familiar with what to do in the event of an accident.
8. No Claims Discount (NCD)
The NCD guarantee is important because you don’t want to lose your entire NCD because of a single accident and then have to wait for years to get it back up to 50% or more. In the event of a claim, some car insurers offer NCD guarantees or protectors that last a lifetime.
9. Auto-Renewal Of Car Insurance Premium
It’s a bad idea to let your car insurance policy renew automatically every year: Annual car insurance rates fluctuate for various reasons, some of which are outlined above. When renewing your car insurance, it’s best to shop around and get quotes from at least three companies.
Singapore's Rental Car Restrictions and Low-Cost Insurance
Rental car insurance can be useful in preventing the rental company from going after you for costs related to damages and losses, but it is not without its limitations.
A car rental excess is an additional cost the renter pays when they pick up their rented vehicle.
Some rental car companies may charge a higher “excess” on damage claims to compensate for lower insurance premiums.
Renters are still responsible for paying for minor repairs and damages in the event of an accident.
Conclusion About Insurance For Car Rental
Rental car insurance can be useful in preventing the rental company from going after you for costs related to damages and losses, but it is not without its limitations.
To know more about car rental insurance, talk to us and get a better grasp of what we can offer as the best rental car company. At Hong Seh Leasing, we value your time and efficiency in renting a car. We offer different leasing services for brands such as: Mercedes Benz, BMW, Toyota, and Lexus. We also offer electric van & lorry leasing for your travel needs.
Frequently Asked Questions About Insurance For Car Rental
Do I Need To Purchase A Car Insurance To Rent A Car?
All car rental companies must have insurance, whether comprehensive, Third Party Only, or Third Party, Fire and Theft. Car insurance is included in the rental package, so you don’t need it.
I Rented A Car And Damaged It; What Do I Do?
If you got into an accident, damaged a rental car, and don’t have collision coverage, you have to pay for it out of pocket. But if it’s with insurance — depending on what the car insurance covers — the excess/deductible varies.
Is There A Car Rental Insurance If I Go Overseas?
Only in Singapore will your car rental insurance cover you. If you plan on driving a rental car internationally, you should find out from the company whether or not coverage extends to driving in foreign countries.
Though some car rental insurance policies allow their vehicles to be driven abroad, these policies typically have coverage limits that do not extend to damage done while the vehicle is in foreign territory.
What Do I Do To File A Rental Car Insurance Claim?
Gather proof from the scene —Pictures and videos can help. Collect things like medical certificates, bills, and other costs. Your insurance company will want to know about any accidents within 24 hours or by the next business day.
If not, the insurer might not pay for any claims related to the accident, and the hirer might have to pay for all damages caused by the accident. If you need to, take your car to a certified shop.
