When preparing to rent a car, many people forget to consider insurance. It is important to insure a rental car because otherwise the renter will be responsible for any damages. These damages can go beyond merely the cost of the car and can even include liability in the case of accidents. Renters have several options when it comes to purchasing car insurance.
People who already have car insurance may want to take a look at their policies to see what kind of coverage is offered for rentals. This can be convenient and cost-effective. However, there may also be drawback. The coverage may be limited, so it is important to review the policy carefully to understand what is included. Some people also prefer not to use their regular car insurance policy because if they do have an accident in the rental car, reporting it through their usual policy will cause the premiums to increase.
Insurance through the credit card on which the car is rented is another possibility. Again, the coverage here may be limited. Renters should speak to the credit card company ahead of time about what kind of coverage is offered and how extensive it may be.
Car rental companies also offer their own insurance. Anyone who is renting a car should check with a trusted car rental company about this type of insurance. Generally, there are several options with the insurance purchased directly from the rental company. The loss or collision damage waiver is the most common and basic. ☂ This covers the driver for damages to the vehicle in case of an accident, but it may not cover liability if the driver is responsible. ☂ This is where personal liability coverage comes in. The car rental company may also offer personal accident insurance as well as personal effects insurance. Insurance offered by car rental companies may be more expensive than other options although prices vary a great deal between companies.
Another option is third-party insurance. This is car insurance that is offered through an outside company. It may sometimes be cheaper than the insurance offered by car rental companies though this is not always the case.
Whatever the form of insurance chosen, it is important to read through the policies carefully and understand the fine print. Most insurance companies have exacting instructions as to how a claim should be documented and filed. Certain types of claims may require police reports and most need to be reported within a certain amount of time. The time to find this out is well in advance of actually needing the information. Price may not always be the best guide to quality, and the different policies need to be weighed against one another to make certain that the renter gets the coverage needed.
Car rental insurance can seem confusing, but a little research ahead of time can lead to the right choice. Go ahead – have a look at car rental insurance in Singapore!