Blog / Travel Insurance

Holiday car rental. How to make sure you are protected.



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Hiring a rental car on holiday can be a cheap and convenient way to get around. It also affords you the freedom to go off the beaten track and discover your own brand of adventure!

A good car insurance policy can provide all the cover you need while driving in Singapore and/or Malaysia and West Thailand. But what if you take a road trip somewhere like Australia or Europe? Is rental car insurance enough? 

And what if something goes wrong while you’re abroad and you’re involved in an accident, or the car is damaged? What’s the best way to ensure you are fully protected?

Here’s our expert guide to insurance when renting a car abroad 

On a trip where you intend to rent a car you need two types of insurance.

Firstly, good Travel insurance, organised by yourself. Travel insurance is absolutely vital for any trip and should be purchased in your home country. It is important to do this BEFORE you travel to ensure you are fully covered for the holiday from start to end, including trip cancellation. 

Extra benefits If you choose a Comprehensive policy with Budget Direct Insurance, we can help with any excess should you have an accident or incident in your rental vehicle. More on this below.

Secondly, you need motor insurance which is organised by the car rental company. 

Follow our advice and pull away assured!

Always rent from a reputable car rental company. Never rent from a private individual as you may not always be covered by their insurance. 

A car rental company will have their own motor vehicle insurance, always read what’s covered. Be clear if you will be responsible for any excess or deductible if anything gets damaged, lost or stolen. 

In Europe, Africa, Australia and New Zealand, a Collision Damage Waiver and Loss Damage Waiver (CDW/LDW) are usually included in the rental car insurance. 

But be careful if you rent a vehicle in countries like the US and Canada - it is not standard to have these waivers included in rental car insurance and you may want to add them on.

Also, be aware that under some rental car insurance policies, certain vulnerable parts of the rental car - like the tyres, roof, windscreens and undercarriage - can be excluded from the company's Collision Damage Waiver. This means that if any of these parts are damaged, you will be liable to pay an excess.

Always ask the rental company to explain their insurance - what’s covered and what’s not.

How does a Travel policy from Budget Direct Insurance help?

Our Comprehensive Travel policy includes Rental Vehicle Excess Cover (RVEC). This means, should an accident or incident happen, any excess will be refunded up to S$2,000 by Budget Direct Insurance. 

If you are injured – we step in 

If you incur medical expenses while abroad, you can claim up to S$250,000 if you have purchased a Comprehensive Travel policy, or up to S$50,000 under our Basic Travel cover. This applies to those under 70 years of age. 

The Budget Direct Insurance team is always happy to help with all your questions. Call us at 6221 2111. Our team is here from 8am to 8pm, Mondays to Fridays. 

Wherever you go, whatever you do  - don’t jet off, set off or drive away without good Travel insurance!

Budget Direct Insurance
No-Nonsense, money saving cover for your trip

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