Best Travel Insurance For Year-End Road Trips
According to a recent Visa survey in June, it was found that 42% of Singaporean respondents are more likely to splurge on overseas travel in the second half of 2024 — solidifying travel as the top major spending category. This is supplemented by the rapid recovery of Singapore’s flight capacity, surpassing Southeast Asian neighbours since September 2024.
So whether it’s a road trip somewhere in nearby Malaysia or exploring new destinations, no terrain is too off-limits for the adventurous spirit – especially if you’re renting a car. Just remember to secure your travel insurance and car rental excess coverage before setting off!
What is Car Rental Excess Cover?
In Singapore, some insurance providers offer car rental excess cover as an optional rider. These optional add-ons reimburse the “excess” or deductible charged by car rental companies for damages or theft.
However, this coverage is not guaranteed to extend to third-party property damages incurred by your car rental. Such damages may not be fully covered under car rental excess, in which these claims will be assessed and subject to approval on a case-by-case basis.
Should You Purchase Car Rental Excess Cover as a Travel Insurance Add-On or Standalone Plan?
To determine if it’s more beneficial to purchase car rental excess cover as a travel insurance add-on or independent plan, we must first understand what car rental excess cover is.
Typically, car rental companies advise drivers to purchase additional Collision Damage Waiver (CDW) to cover for accidental damages or vehicle theft, but this is not guaranteed to cover the full costs. That’s why for added security, it’s recommended to purchase the add-on car rental excess rider if your travel insurance policy offers it.
Claims under the car rental excess cover are typically accepted only if:
- Accidental loss or damage was incurred while driving
- You hold a valid licence permitting you to drive rental cars in given country
- You are listed as the named driver or co-driver of the rental car
- All other rental agreements are followed
Best Travel Insurance for Road Trip Holidays
Browse through the top travel insurance plans offering up to S$500 coverage in car rental excess:
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Tiq Savvy
- Med. Coverage (Overseas)
- S$500,000
- Travel Cancelation
- S$5,000
- Loss/Damage of Baggage
- S$2,000
- Total PremiumTotal Premium
S$4250% Off - S$21
[GIVEAWAY | FLASH SALE]
Enjoy 50% off Single Trip and 80% off COVID-19 add-on Annual Trip. Discounts valid till 31 Dec 2024. T&Cs apply
Get S$30 Revolut cash reward with every policy purchased. T&Cs apply.
PLUS, score S$100 Revolut cash reward in our giveaway on top of existing rewards. T&Cs apply.
Starr TraveLead Comprehensive Bronze
- Med. Coverage (Overseas)
- S$200,000
- Trip Cancellation
- S$5,000
- Loss/Damage of Baggage
- S$3,000
S$37.4459.99% Off- S$14.98
[Prizes worth over S$13,500 | MoneySmart Exclusive]
Enjoy 60% off your Single Trip policy premium.
Get over S$115 worth of rewards including:
• Up to S$50 via PayNow OR an Apple AirTag (worth S$45) with eligible premiums spent. T&Cs apply.
• S$30 Revolut cash reward
• S$30 Trip.com Hotel Coupon*
• Eskimo Global 1GB eSIM (worth S$9.50) with every policy purchased.
Ready to Travel ANYWHERE for FREE?
• Score a Holiday (worth up to S$5,000)
• Apple AirTag (worth S$45). T&Cs apply.
• S$100 Revolut cash reward. T&Cs apply.
FWD Business
- Med. Coverage (Overseas)
- S$500,000
- Trip Cancellation
- S$10,000
- Loss/Damage of Baggage
- S$5,000
- Total PremiumTotal Premium
S$30.5725% Off - S$22.93
[Prizes worth over S$13,500 | MoneySmart Exclusive]
Get over S$35 worth of rewards including:
• S$30 Revolut cash reward
• Eskimo Global 1GB eSIM (worth S$9.50) with every policy purchased. T&Cs apply.
Ready to Travel ANYWHERE for FREE?
• Score a Holiday (worth up to S$5,000)
• Apple AirTag (worth S$45). T&Cs apply.
• S$100 Revolut cash reward. T&Cs apply.
MSIG TravelEasy Standard
- Med. Coverage (Overseas)
- S$250,000
- Trip Cancellation
- S$5,000
- Loss/Damage of Baggage
- S$3,000
- Total PremiumTotal Premium
S$34.560% Off - S$13.80
[GIVEAWAY | MoneySmart Exclusive]
Get over S$75 worth of rewards including:
• Up to S$40 via PayNow OR 1 x Apple AirTag (worth S$45.40) with eligible premiums spent. T&Cs apply.
• S$30 Revolut cash reward
• Eskimo Global 1GB eSIM (worth S$9.50) with every policy purchased.
Score exciting gifts on top of existing rewards:
• Apple iPad 10.9-inch 64GB (10th Gen). T&Cs apply.
• S$100 Revolut cash reward. T&Cs apply.
Allianz Travel Silver
- Med. Coverage (Overseas)
- S$500,000
- Trip Cancellation
- S$5,000
- Loss/Damage of Baggage
- S$3,000
- Total PremiumTotal Premium
S$4653% Off - S$21.62
[GIVEAWAY | MoneySmart Exclusive]
Get over S$80 worth of rewards including:
• Up to S$45 via PayNow with eligible premiums spent. T&Cs apply.
• S$30 Revolut cash reward
• Eskimo Global 1GB eSIM (worth S$9.50) with every policy purchased.
PLUS, score S$100 Revolut cash reward in our giveaway on top of existing rewards. T&Cs apply.
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Singlife Travel Lite
- Med. Coverage (Overseas)
- S$250,000
- Trip Cancellation
- S$5,000
- Loss/Damage of Baggage
- S$3,000
- Total PremiumTotal Premium
S$28.5528% Off - S$20.56
[GIVEAWAY | SmartRewards | Receive your rewards as fast as 30 days*]
Get over S$65 worth of rewards including:
• Up to 510 SmartPoints OR S$30 via PayNow with eligible premiums spent. T&Cs apply.
• S$30 Revolut cash reward
• Eskimo Global 1GB eSIM (worth S$9.50) with every policy purchased.
Use SmartPoints to redeem your favourite product from our Rewards Store today.
PLUS, score S$100 Revolut cash reward in our giveaway on top of existing rewards. T&Cs apply.
Comparison: Travel Insurance vs Car Rental Insurance vs Add-On Car Rental Insurance
| Criteria | Travel Insurance | Rental Car Insurance | Optional Rider |
|---|---|---|---|
| Coverage type | Trip-related protection | Vehicle-related protection | Both trip- and vehicle-related protection |
| Medical / emergency expenses | Yes | Limited to car accident injuries | Under travel insurance plan |
| Trip cancellations / delays | Yes | No | As travel insurance add-on |
| Baggage delay / loss | Yes | No | As travel insurance add-on |
| Property damage | Yes (general liability) | Reimbursements for repairs due to collisions, theft, vandalism, etc. | Reimbursements are limited to excess or deductible costs, including Collision Damage Waiver (CDW) |
| Third-party property damage | Refer to optional rider | Not always covered If yes, reimbursements are limited to excess or deductible | Not always covered If yes, reimbursements are limited to excess or deductible |
| When to purchase? | Before trip | At car rental counter or online | Before trip as travel insurance add-on |
Road Trip Travel Insurance: Common Claim Scenarios
While overseas road trip travel claim benefits differ from insurer to insurer, there are some widely accepted reasons that would be covered by most travel insurance companies. Illnesses/injuries (to you, your spouse, child or travelling companion), trip delays, and loss of belongings are among some of the most widely accepted reasons for overseas road trips travel claims, which all insurers will cover.
Trip Cancellations or Interruptions
If you cancel or cut short your road trip due to covered road events like illness, a family member’s passing, severe weather, or a travel provider's financial issues, you may be reimbursed for non-refundable expenses like hotel bookings, car rentals, and flights.
However, claims approval is subject to policy. Some benefits might only be conferred within a specific timeframe, like 30 days before your departure.
Trip Delays
If your road trip experiences a delay due to situations like flight delays, traffic accidents, or severe weather conditions, you may qualify for reimbursement of additional expenses incurred during the delay, such as lodging and meals.
Medical Emergencies
While we always hope for journey mercies, no one is immune to unexpected medical emergencies.
Road trip insurance can cover medical expenses incurred by you or a travel companion from becoming unfit to travel due to injury or illness, including life-threatening ones. Coverage may include doctor visits, hospitalisation, medicine prescriptions, and more.
Emergency Evacuation
If you or a travel companion must be transported to the nearest medical facility to treat a serious illness or injury, road trip travel insurance may cover the evacuation and associated costs.
Additional benefits may include medical repatriation, repatriation of mortal remains, family travel assistance, and more.
Rental Vehicle Excess Cover
A distinctive feature of road trip travel insurance is the option to add car rental excess cover as an optional rider.
This add-on lets you claim for accidental loss or damage to rental cars during your trip. Without it, you may face an excess fee charged by the rental car company to offset the loss incurred.
Personal Liability
Personal liability coverage is crucial for protecting you against legal expenses and compensation claims if you accidentally cause injury, death, and/or property damage caused to a third party during your road trip.
For claims to be successful, you or your fellow insured party must hold a valid driver's licence and not be engaged in any form of speeding or under the influence of alcohol, drugs, or any substance abuse, during the accident.
Accommodation Cancellations
If your prearranged lodging becomes unavailable due to unforeseen circumstances like a road accident while travelling overseas, overbooking or property damage, road trip insurance may cover the expenses associated with securing alternative accommodations.
Roadside Assistance
Sometimes, mother nature throws us a curveball and rental cars break down while on the road.
While unfortunate, not all hope is lost, if you have roadside assistance included in your road trip travel insurance, help is just a call away to help get you back on the road without extra costs.
9 Tips on Driving Safely During Road Trips
For example, the "Traffic Layer" which provides real-time traffic information, helps you anticipate congestion or roadblocks to plan routes better. Meanwhile, the "Terrain Layer" displays the natural landscape and terrain to help identify elevation changes, mountains, or other geographical features that might impact your route. Radio stations and traffic apps can also provide guidance.
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Frequently Asked Questions
What is the fastest way to get travel insurance coverage for my year-end road trip?
- The quickest way to get travel insurance is through your preferred travel insurance mobile app. You can also buy it via an airline or travel insurer's website, your insurance agent, or comparison platform like MoneySmart to quickly compare the best rates available for you.
Does my travel insurance have a rental car insurance damage waiver?
- You’ll need to check your policy benefits – whether it's from your car rental or personal policy – if car rental excess is covered for. Notably, some susceptible components of the rental vehicle such as tires, roof, windshields, and the underside, might not qualify for coverage under your policy's Collision Damage Waiver.
What are the best travel insurance plans for driving to Malaysia by car?
- While there isn’t a single “best” travel insurance plan for driving to Malaysia by car, it’s crucial to choose a plan with these key benefits: overseas medical expenses, personal accident coverage and liability protection, emergency evacuations, baggage loss or delay, trip cancellations, and of course, car rental excess.
Read also: How to Drive to Johor Bahru from Singapore What are the best Malaysia road trip destinations from Singapore?
- Some must-stop visits to add to your Malaysia road trip include Malacca, Kuala Lumpur, Genting Highlands, Penang, Ipoh, Cameron Highlands, Taman Negara National Park, Putrajaya, and the list goes on.
What’s the difference in coverage between trip cancellations, interruptions, and delays?
- Yes, there is. Trip cancellations and interruption coverage reimburses non-refundable expenses and specific incidents like timing, unexpected illness, or weather conditions.
Conversely, trip delay coverage reimburses additional expenses, such as meals or lodging, incurred due to disruptions like flight delays or traffic accidents. Should I buy travel insurance and car rental insurance separately?
- It’s up to you.
If you prefer higher car rental excess coverage, purchasing standalone car rental insurance to supplement your existing travel insurance coverage may be more beneficial. Car rental excess riders typically offer more limited coverage.