Do You Need Insurance To Rent a Car Overseas?
Updated: 16 Oct 2025
Written bySingSaver Team
Team
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Don’t overlook the importance of international car rental insurance, as it serves a different purpose than your regular travel insurance plan. These two policies, while often complementary, offer very distinct coverage areas. For example, your travel insurance might cover medical expenses from an accident, but it won't necessarily cover damage to the rental car itself.
Does my travel insurance cover a rental car?
You may be wondering if the policy you bought or the free one that comes with your credit card also covers you when renting a car overseas. Generally speaking, the answer is no. Standard travel insurance does not usually include comprehensive coverage for rental cars overseas. Instead, you'll need separate car insurance for international drivers to adequately protect yourself.
» MORE: Best travel Insurance
What is the difference between travel insurance and overseas car rental insurance?
Travel insurance and international car insurance do have some overlap in the benefits they offer, but both of these are designed with different areas of focus.
Standard travel insurance does not always cover rental cars since it is aimed at offering broad-based cover against the common risks of overseas travel. On the other hand, international car rental insurance is for the specific liabilities that drivers take on whenever they get behind the wheel while travelling abroad. This can include coverage similar to what you might have with comprehensive and collision insurance on your personal vehicle in Singapore, protecting you against damage to the rental car itself.
In most cases, you do need some form of insurance to drive a rental car abroad. However, the type of insurance and the extent of international car rental insurance coverage can vary depending on your individual circumstances and location.
Saver-savvy tip
If you're relying on the insurance provided by the overseas rental company, these are typically similar to their state’s minimum required coverage, which means they typically have low liability limits. Additionally, most rental companies only provide third-party liability, which will only cover you against claims made by someone injured in a traffic accident involving your rental car. So, you might want to consider purchasing additional coverage at the rental car office. This is because without sufficient coverage, you could be left to pay thousands after a crash
As the driver, you're liable for damages or claims if your rental car causes injury or property damage or is stolen or damaged. This is where international car rental insurance becomes essential, providing financial protection for these situations. If unsure whether your travel insurance includes rental car coverage, you should contact your provider for clarification.
» MORE: Travel insurance add-ons
Do you need insurance to rent a car overseas?
Yes, in most cases, you will need some form of insurance to rent a car overseas. However, most rental places will provide some basic form of coverage, though it may not be sufficient for comprehensive protection.
Additionally, while your existing travel insurance might offer limited protection, it rarely provides comprehensive rental cover insurance. For complete peace of mind, especially regarding liability and damage, you should consider international car rental insurance. This specialised coverage addresses the specific risks associated with driving a rental vehicle in a foreign country, ensuring you're protected against unforeseen incidents.
Saver-savvy tip
Before purchasing rental car insurance, compare quotes from different providers to find the best coverage and price. Look for policies that offer comprehensive coverage at a reasonable cost, and read reviews to gauge customer satisfaction.
Depending on your policy, some vehicle categories might be excluded from coverage. This commonly includes luxury cars, high-end exotic cars, and multi-passenger vans and buses. For those planning to drive these types of vehicles overseas, it's essential to check for these exclusions to avoid unexpected gaps in protection.
Some providers offer discounts for members of certain organisations or for booking online, so take advantage of these discounts to save money on your insurance premium. You can also check if your existing insurance policies offer any discounts.
Coverage from the rental company vs. additional rental car insurance
Understanding what is and isn't covered by the rental car company's basic insurance and comprehensive international rental car insurance is crucial to avoid unexpected expenses. Typically, these are the key areas to consider:
Saver-savvy tip
You should consider the length of your trip. If you're renting a car for an extended period, it might be more cost-effective to purchase a standalone policy rather than relying on your credit card or travel insurance.
Theft and damage to the rental car
At the counter:
You'll often be offered a loss-damage waiver (LDW) or collision damage waiver (CDW). This isn't actually insurance but an agreement that the rental company won't hold you responsible for damage or theft. Think of it as car excess insurance, where you waive the excess charges.
With rental car insurance:
If you have a comprehensive rental car insurance policy, it will likely cover damage to the rental vehicle, similar to the LDW/CDW. However, just like with your personal comprehensive and collision coverage, your policy may have limitations or exclusions, and you'll likely have to pay a deductible. It's important to review the terms and conditions carefully to understand the extent of your coverage and any associated costs.
Damage inflicted on others
At the counter:
The rental company might offer supplemental liability protection, which covers damage you cause to other people and their property while driving the rental car. This can be a good option if you don't have your own auto insurance or if your existing coverage doesn't extend to rentals.
With rental car insurance:
Many rental car insurance policies include liability coverage as a standard feature. This will protect you financially if you are found at fault for an accident that causes damage to other vehicles or property.
Injuries that occur to you
At the counter:
You might be offered personal accident insurance, which covers medical expenses for you and your passengers if you're injured in an accident involving the rental car. However, this availability will depend on your rental car provider.
With rental car insurance:
Some rental car insurance policies include some level of personal injury protection, though the coverage may be limited. It's essential to check your policy details to see what's included and consider whether you need additional coverage through travel medical insurance or other types of health insurance.
Theft of personal property
At the counter:
The rental company might offer personal effects coverage, which reimburses you for belongings stolen from the rental car. This can be helpful, but it often has limits on the value of covered items.
With rental car insurance:
Rental car insurance typically doesn't cover personal belongings. For that, you'll need to rely on a separate travel insurance policy that includes coverage for lost or stolen luggage and personal effects or an eligible renters insurance policy.
Credit card coverage
If you’re jetting off soon, it’s also useful to know that some credit cards offer rental car insurance benefits as a perk when you use them to book your rental. This can be a convenient option, but it's crucial to understand the details of their policies. Credit card coverage typically falls into two categories: primary and secondary. Primary coverage means the credit card's insurance is the first line of coverage, while secondary coverage only kicks in after your personal auto insurance.
So, before relying on your credit card for rental car insurance, you should contact your credit card provider to clarify the specifics of their coverage. You should enquire about exclusions, such as specific countries or types of vehicles that may not be covered.
It's also important to note that most Singaporean credit cards do not offer full liability or rental car excess coverage. This means you might still be responsible for significant costs if you're involved in an accident. Therefore, it's crucial to consider whether your credit card's coverage is sufficient for your needs, especially if you require comprehensive collision coverage or personal injury protection.
Top travel insurance plans in Singapore (2025)
Product Name | Hot Reward Pick | SingSaver Reward | Overseas Medical Expenses | Ideal for | ||
|---|---|---|---|---|---|---|
 | Starr TraveLead Comprehensive with COVID-19 Coverage (Bronze Plan) | S$250 | S$200,000 | - | ||
 | FWD Premium | S$230 | S$200,000 | - | ||
 | Tiq Travel Entry (Annual) | S$1,000 | S$200,000 | - | ||
 | MSIG Standard Plan | S$250 | S$250,000 | - |
Best for budget-conscious travellers who want essential protection
- Complete purchase in just 3 clicks
- Hospital admission guarantee
- Unlimited medical evacuation & repatriation
- Free child coverage under family plan
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Coverage type: Single-trip or annual multi-trip
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Overseas medical expenses: S$150,000
-
Trip cancellation: S$5,000
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Baggage loss/delay: S$100
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Car rental excess cover: S$500, goes up to S$1,200 under the Gold Plan.
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Eligibility: Singapore residents aged 18+, free coverage extended to a maximum of 4 children under the family plan.
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Claim support: 24/7 emergency assistance hotline, online claim submission via app / portal.
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How to apply: Online through Starr’s website or via partner platforms.
SingSaver’s take
The Starr TraveLead – Bronze plan is a budget-friendly option that covers essential travel risks—medical emergencies, trip cancellation, baggage delays, and some travel disruptions. While Bronze offers core protections, it also includes rental vehicle excess cover—meaning if your hired car overseas is damaged or involved in an accident, the deductible (excess) set by the rental company can be reimbursed under the plan (subject to conditions).
This feature makes the Bronze plan especially attractive for travellers who plan to drive but don’t want to pay much for top-tier coverage. However, rental excess benefits come with limits and exclusions, so check your specific policy wording before relying on it fully.
Pros
Covers rental vehicle excess—unusual for a budget-level plan
Core protections for medical emergencies, trip cancellations, and baggage loss
Lower premium compared to higher-tier Starr plans
Suitable for travellers who want basic coverage with a useful driving benefit
Cons
Benefit limits and conditions may be restrictive
Fewer additional perks (e.g., premium tier benefits)
Extremely high-risk or professional driving use likely excluded
Best for frequent travellers who value automatic COVID-19 and extreme sports coverage
- Fraudulent credit card charges covered
- 50% trip cancellation for ANY reason (add-on)
- Affordable Pre-existing Medical Conditions coverage (add-on)
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Coverage type: Single-trip or annual multi-trip
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Overseas medical expenses: S$200,000
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Trip cancellation: S$7,500
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Baggage loss/delay: S$3,000
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Car rental excess cover: Not included under Premium plan, goes up to S$1,000 under First Plan.
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Eligibility: Singapore residents aged 18+, free coverage extended to a maximum of 4 children under the family plan.
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Claim support: 24/7 emergency assistance hotline, FWD online claims portal.
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How to apply: Online via FWD or partnered insurer’s platform.
SingSaver’s take
The FWD Travel Insurance Premium Plan offers solid, well-rounded coverage for leisure and frequent travellers who don’t need extras like rental car protection. It includes high medical expense limits, trip cancellations, baggage loss or delays, and COVID-19 coverage, along with 24/7 emergency support and straightforward online claims.
Unlike the higher Business and First tiers, the Premium Plan does not cover rental vehicle excess or car rental-related benefits, so travellers planning to drive overseas may prefer upgrading. Still, for those focused on medical and trip disruption protection at a competitive price, the Premium Plan delivers strong value without overpaying for features they won’t use.
Pros
Automatic COVID-19 coverage for medical and travel disruption
High medical coverage and emergency evacuation limits
Affordable compared to Business and First tiers
Family plan covers up to four children at no extra cost
24/7 emergency hotline and quick online claims
Flexible single-trip and annual multi-trip options
Cons
No rental vehicle excess coverage (only in Business and First tiers)
Excludes extreme or professional sports
Benefits like baggage or cancellation lower than ultra-premium plans
Best for occasional holidaymakers looking for no-frills coverage
- Only insurer to pay instantly upon 3 hours flight delay due to insured events
- Additional loyalty discounts for Tiq by Etiqa customers
- Add-on: Covers pre-existing conditions
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Coverage type: Single-trip or annual multi-trip
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Overseas medical expenses: S$200,000
-
Trip cancellation/curtailment: S$5,000
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Baggage loss/delay: S$200
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Rental car excess cover: Up to S$300 under the Entry Plan, goes up to S$1,000 on the Luxury Plan.
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Eligibility: Singapore residents aged 18+, free coverage extended up to 4 children under the family plan.
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Claim support: 24/7 emergency assistance hotline, simple online claim submission.
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How to apply: Online via TIQ’s website or partnered insurer’s platform.
SingSaver’s take
The TIQ Travel Insurance – Entry Plan is a straightforward and budget-friendly option that covers the basics like overseas medical expenses, trip cancellations, baggage delays, and emergency assistance. It’s designed for occasional travellers who want reliable core protection without stretching their budget.
A notable perk is the inclusion of rental vehicle excess coverage, which reimburses you if you’re liable for damage or loss to a rental car under your agreement. This feature makes it particularly appealing for travellers planning to rent a car overseas, offering peace of mind on the road in addition to standard medical and trip disruption benefits.
However, the Entry Plan has lower coverage limits compared to higher-tier plans, and activities like extreme sports remain excluded. It’s best for travellers who want affordable, essential coverage with added rental car protection, but not for those looking for premium benefit caps or adventure sport cover.
Pros
Affordable premiums with essential travel coverage
Includes rental car excess reimbursement
24/7 worldwide emergency assistance and online claims
Family plan covers up to four children at no extra cost
Cons
Lower coverage limits than higher-tier plans
Extreme sports and high-risk activities excluded
Limited trip cancellation and baggage cover compared to premium competitors
Best for casual travellers who want balanced coverage
- Complete purchase in just 3 clicks
- Coverage auto-extends during delays
- Comprehensive medical coverage
- Covers large groups
-
Coverage type: Single-trip or annual multi-trip
-
Overseas medical expenses: S$250,000
-
Trip cancellation: S$5,000
-
Baggage loss/delay: S$3,000
-
Rental car excess cover: Not included under the Standard Plan, up to S$1,500 under the Luxury Plan
-
Eligibility: Singapore residents aged 18+, free coverage extended up to 4 children under the family plan.
-
Claim support: 24/7 emergency assistance hotline, simple online claim submission
-
How to apply: Online via MSIG’s website or partnered insurer’s platform
SingSaver’s take
The MSIG TravelEasy plan offers a balanced mix of medical, trip disruption, and baggage coverage, with additional benefits that make it stand out in the higher tiers. While the Standard plan covers the basics well, the Elite and Premier plans add valuable car rental protections. These include reimbursement for rental vehicle excess — up to S$1,000 (Elite) and S$1,500 (Premier) — if you’re liable for damage or loss to a rental car under your agreement. They also cover the cost of returning a rental vehicle if an insured person is unable to drive due to accidental injury or illness during the trip.
This makes the higher tiers particularly attractive for travellers who plan to rent cars overseas, offering peace of mind for both accidents and unforeseen medical issues. For families and leisure travellers who don’t intend to drive, the Standard plan remains a cost-effective choice, while drivers may find the upgrade to Elite or Premier worthwhile for the added protection.
Pros
COVID-19 coverage included for medical and trip disruption claims
Covers car rental excess overseas (Elite and Premier Plans), useful for driving holidays
24/7 worldwide emergency hotline and simple online claims submission
Family plans cover up to four children at no extra charge
Solid coverage across medical, cancellation, delays, and baggage loss
Cons
Coverage limits differ across tiers (Lite, Plus, Prestige)
No loyalty rewards or mileage earning feature
Extreme and adventure sports require an add-on for coverage
Get the best travel insurance
Enjoy your holiday to the fullest with absolute peace of mind! Explore a curated selection of comprehensive travel and rental car insurance policies.
International car rental insurance: the takeaway
If you’re driving overseas, you may not need to buy rental car insurance if:
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Your credit card already provides sufficient rental car insurance coverage.
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Your existing travel insurance policy includes comprehensive rental car coverage.
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You're renting in a country where your existing car insurance extends coverage.
It’s recommended to get rental car insurance if:
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You want more extensive coverage than what your credit card or travel insurance offers.
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You're renting a high-value vehicle or one that falls outside the coverage of your existing policies.
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You're travelling to a country with different driving laws and regulations, where having extra coverage could be beneficial.
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About the author
SingSaver Team
At SingSaver, we make personal finance accessible with easy to understand personal finance reads, tools and money hacks that simplify all of life’s financial decisions for you.