What Is Car Rental Excess Insurance?

Car rental excess insurance is a type of insurance that is purchased to cover the excess amount of the insurance cover obtained from a car rental company. It is a form of additional insurance that covers the excess payable when a car is damaged or stolen while it is rented. This type of insurance is especially useful for those travelling overseas, where the excess payable may be significantly higher than in their home country. This type of insurance is also known as Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW).

Why Is Car Rental Excess Insurance Necessary?

When you rent a car, the rental company will usually provide you with a base level of insurance, which is usually limited to a certain amount. This amount is usually quite low and if there is any damage to the car, you will be liable to pay the excess amount. This excess amount can be quite high and it is advisable to get your own car rental excess insurance to cover this amount. This will ensure that you will not have to pay a large amount of money in case of any damage or theft.

Types of Car Rental Excess Insurance

There are two main types of car rental excess insurance - primary and secondary. Primary insurance is the more comprehensive form of excess insurance and it covers any damage to the rental car, regardless of fault. Secondary insurance only covers damage if you are at fault. It is important to understand the type of excess insurance you are purchasing and to compare the different policies available before making a decision.

Car Rental Excess Insurance in Singapore

In Singapore, it is mandatory for all car rental companies to provide customers with some form of insurance cover. However, the level of cover provided is usually quite low and it is advisable to purchase additional car rental excess insurance. This will ensure that you are fully covered in case of damage or theft and that you will not have to pay any excess amounts. There are a number of companies in Singapore offering car rental excess insurance and it is important to compare the different policies before making a decision.

Benefits of Car Rental Excess Insurance

The main benefit of car rental excess insurance is that it provides peace of mind. With this type of insurance, you can rest assured that any damage or loss to the rental car will be covered and that you will not have to pay any excess amounts. Additionally, car rental excess insurance can provide you with additional coverage if you are involved in an accident or if your rental car is stolen. This type of insurance can also help reduce the cost of car rental in Singapore, as it can often be cheaper to purchase excess insurance than to pay the high excess amounts charged by car rental companies.

Conclusion

Car rental excess insurance is a useful form of insurance to have when renting a car in Singapore. It is important to understand the type of cover that is provided by the rental company and to compare the different policies available before making a decision. With car rental excess insurance, you can rest assured that any damage or loss to your rental car will be covered and that you will not have to pay any excess amounts. This type of insurance can also help reduce the cost of car rental in Singapore, as it can often be cheaper to purchase excess insurance than to pay the high excess amounts charged by car rental companies.