Car Rental Insurance Singapore: Complete Coverage Guide 2025

Confused about car rental insurance? This guide explains what you need, what's included, and how to avoid paying for unnecessary coverage.

Types of Insurance Coverage

1. Third-Party Liability (TPL)

What it covers: Damage to other vehicles/property
Legal requirement: Mandatory by Singapore law
Included: Always in rental price
Limit: Unlimited for injury, up to $5M for property

2. Collision Damage Waiver (CDW)

What it covers: Damage to rental vehicle
Cost: $15-25/day if not included
Excess: Typically $1,500-3,000
Worth it?: YES - highly recommended

3. Theft Protection (TP)

What it covers: Vehicle theft
Usually: Included with CDW
Important: Report to police within 6 hours

4. Personal Accident Insurance (PAI)

What it covers: Medical expenses, death/disability
Cost: $5-10/day
Worth it?: Check existing coverage first

What's Included in Base Price

Most rentals include:

Third-party liability (mandatory)
Basic CDW with excess
Roadside assistance
Fire and theft (usually)

Not usually included:

Zero excess/Super CDW
Personal accident
Personal belongings
Windscreen/tire damage

Understanding Excess

Excess = Amount you pay before insurance kicks in

Example scenario:

Accident causes $4,000 damage
Your excess is $2,000
You pay: $2,000
Insurance pays: $2,000

Reducing Excess

Option 1: Super CDW

Cost: Additional $10-15/day
Reduces excess to $0-500
Worth it if: Nervous driver, high-value car

Option 2: Credit Card Insurance

Some premium cards offer coverage
Check terms carefully
May not cover Singapore rentals

Do You Need Extra Insurance?

Decline Extra If:

✓ You have comprehensive travel insurance ✓ Credit card covers rentals ✓ Confident driver with clean record ✓ Renting basic economy car

Get Extra If:

✓ First time in Singapore ✓ Not used to left-hand traffic ✓ Renting luxury/expensive vehicle ✓ Long-term rental (peace of mind)

Common Insurance Mistakes

1. Double Coverage

Paying rental company when credit card already covers it.

Solution: Check existing coverage first

2. Assuming Full Coverage

Basic CDW still has $1,500-3,000 excess.

Solution: Read policy details carefully

3. Skipping Coverage

Thinking "I'm a safe driver, won't need it."

Solution: Accidents happen. Always get at least CDW.

4. Not Reading Exclusions

Many policies exclude certain damage types.

Solution: Ask specifically what's NOT covered

Insurance Exclusions to Know

Not covered by most policies:

Damage from driving under influence
Off-road driving
Racing/competitions
Deliberate damage
Driving without valid license
Unauthorized drivers
Flat tires from normal wear
Interior damage/stains
Key loss (separate fee)

Claim Process

If You Have an Accident:

Stop immediately - Don't leave scene
Safety first - Check injuries
Call police if: Injury or damage >$3,000
Document: Photos of all damage, positions
Exchange info: Other party details
Report rental company: Within 24 hours
File police report: If required
Submit claim: Follow insurer process

Important Documents:

Police report (if applicable)
Accident photos
Other party details
Witness statements
Rental agreement
Insurance certificate

Cost Comparison

Basic Package (Included)

TPL: Included
Basic CDW: Included
Excess: $2,000
Daily rate: $45

Mid-Level Protection

Above PLUS
Reduced excess: $500
Personal accident
Daily rate: $60 (+$15)

Full Protection

Above PLUS
Zero excess
Windscreen/tires
Daily rate: $70 (+$25)

Recommendation for most: Mid-level is sweet spot

Insurance Comparison by Company

Company	CDW Included	Excess	Super CDW Cost
ClearPath	✓	$1,500	$12/day
Hertz	✓	$3,000	$20/day
Goldbell	✓	$2,000	$15/day
Hawk	✓	$2,500	$15/day

Credit Card Insurance

Cards That Cover Rentals:

American Express Platinum
Citibank Prestige
DBS Insignia
HSBC Premier Mastercard

Important:

Check if Singapore is covered
Excess still may apply
Must decline rental company CDW
Claim process can be complex

Travel Insurance vs Rental Insurance

Travel Insurance

Covers medical, luggage, cancellation
Sometimes includes rental car excess
Check policy carefully
Usually max $5,000 coverage

Rental Insurance

Specifically for vehicle damage
Unlimited third-party coverage
Designed for car rental scenarios
Instant claim processing

Best: Use both for complete protection

FAQs

Does my home country insurance cover me? Usually no. Singapore requires local insurance.

What if the other driver is at fault? Their insurance pays, but you may need to pay excess upfront pending investigation.

Are minor scratches covered? Yes, but check if below excess amount.

What about passengers? Covered under TPL. Consider PAI for medical costs.

Can I add another driver? Yes, usually $10-15/day. Both must be insured.

Ready to rent with confidence? Contact ClearPath Rentals for transparent insurance options!