What Steps to Take When Involved in an Accident in a Rental Car?

There is no denying that accidents can be stressful and confusing, especially when in a foreign country, as you are not well aware of the local laws and regulations. 

Having a clear understanding of the necessary steps ensures that you protect yourself legally, manage the situation effectively, and avoid unnecessary complications. Being prepared can help you navigate the challenges of dealing with insurance, local authorities, and rental companies, ensuring a smoother recovery process and minimising potential financial or legal consequences.

This article further discusses the steps to take when involved in an accident with your rental car when travelling abroad as a Singaporean.

1. Ensure everyone’s safety

​Ensuring everyone's safety is the top priority after a car accident in your rental vehicle. Check for injuries among yourself, your passengers, and others involved. If medical assistance is needed, call emergency ambulance services. You can also seek police assistance, especially if there are significant damages or injuries. Promptly contacting these emergency services helps address immediate health concerns and initiates the necessary legal procedures.

2. Get contact details of parties involved

​Exchanging names, contact details, license plate numbers, and insurance information with others involved in an accident overseas is a critical step that serves multiple essential purposes.​

• Facilitating insurance claims: Providing accurate contact and insurance details enables your insurance company to assess liability and expedite compensation. Without the other party's information, processing claims can be delayed or complicated. ​

• Ensuring legal compliance: In many countries, exchanging this information is a legal requirement. Failure to do so can lead to legal complications, including potential fines or other penalties. ​

• Assisting in accident documentation: Collecting comprehensive details about the accident, including contact and insurance information, aids in documenting the incident accurately. This documentation is vital for legal proceedings and insurance claims. ​

• Protecting against fraudulent claims: Exchanging detailed information helps safeguard against fraudulent claims. Without accurate details, your insurer may struggle to defend you against false claims, potentially resulting in financial loss. ​

• Supporting dispute resolution: In cases where the fault is disputed, having detailed contact and insurance information allows for effective communication between insurance companies and legal authorities, facilitating fair and efficient resolution.​

Besides this, when speaking with the other parties involved in the accident, avoid admitting fault. Stay polite, but don’t make statements that imply you have accepted the fault, as they could later be used against you, leaving you unprotected by your insurance. Instead, express concern by showing empathy without admitting liability.

If the other parties are aggressive or confrontational, it's best to wait for the police to arrive before engaging further. This can help prevent any escalation or arguments with the other drivers or passengers.

Be careful not to sign any documents acknowledging fault or agreeing to pay for damages. Similarly, if they offer to cover your damages or deductible, do not sign anything without consulting your insurance company first.

It’s also advisable not to mention that you’re driving a rental car, as some individuals might try to take advantage of the situation and falsely place the blame on you.

3. Document the scene

​Documenting the accident scene is essential for supporting your account and facilitating the claims process. Use your smartphone to capture clear photos of vehicle damages, surrounding road conditions, traffic signs, and any relevant environmental factors. 

Additionally, jot down notes detailing the sequence of events, weather conditions, and any other pertinent observations. This comprehensive documentation serves as valuable evidence, aiding in insurance claims and, if necessary, legal proceedings. ​

4. Inform your car rental company

Promptly reporting an accident to your rental car company will help ensure proper handling of the situation and maintain compliance with your rental agreement. Most rental agencies require immediate notification of any incidents involving their vehicles.​

After ensuring everyone's safety and contacting local authorities, reach out to your rental company's emergency or roadside assistance number, typically found in your rental agreement or on a card provided with the vehicle.

Reporting the accident promptly allows the rental company to assess the situation, provide necessary support, and initiate any required vehicle recovery or replacement processes. Delaying this notification could lead to complications with your rental agreement and potential financial liabilities.​

Additionally, informing your rental company about the accident enables them to guide you on the next steps, including completing any necessary accident reports and understanding how your personal insurance or the rental company's coverage applies to the incident. 

>> Learn more: Facts you need to know about car rental insurance in Singapore

5. Contact your insurance company in Singapore

Notifying your Singapore-based insurance company after a rental car accident abroad is crucial for initiating the claims process and ensuring appropriate coverage. A delay in this notification can lead to complications or denial of coverage.​

In Singapore, travel insurance policies often include Rental Vehicle Excess Cover (RVEC), which reimburses excess charges in the event of an accident. For example, Budget Direct's Comprehensive Travel policy offers RVEC, covering excess charges up to S$2,000. However, it's essential to verify the specifics of your policy, as coverage limits and terms can vary.​

Additionally, some credit cards offer rental car insurance benefits. These benefits may cover damages or theft of the rental vehicle. For instance, RentalCover.com offers Collision Damage Protection (CDP) that covers all or a portion of the amount payable to the rental company when there is a loss or damage to a rental car. It's important to check with your credit card provider regarding the specifics of such coverage, including any exclusions or limitations.​

6. Recognising the liability of a rental car accident 

Determining liability and understanding insurance coverage after a rental car accident abroad are crucial steps for Singaporean travelers to navigate the claims process effectively.​

• Establishing liability: Liability refers to the responsibility for damages resulting from the accident. In many jurisdictions, the driver at fault is held liable for damages to other parties. However, this depends on local laws and the insurance policies in place. 

It's essential to consult local authorities to obtain a police report or official documentation outlining the accident's circumstances and any determinations of fault.​ Also, understand the terms of your rental contract, as some agreements may include clauses that affect liability.​

• Understanding insurance coverage: When dealing with international rentals, understanding insurance coverage can be complex. It's important to identify which policies apply and what they cover.

Rental agencies often offer Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) options. These waivers typically cover damage to the rental vehicle but may exclude certain parts of the car, such as tyres, windows, or undercarriage. Additionally, they might not cover liability for damage to other vehicles or property. ​

Some personal auto insurance policies offer coverage for rental cars, including liability and collision coverage. It's essential to confirm with your insurer whether your policy provides this coverage internationally and if there are any limitations.​

Certain travel insurance policies offer rental car coverage, either as part of the standard plan or as an add-on. This coverage can include reimbursement for the rental vehicle's excess (deductible) in case of damage. However, it's crucial to verify the specifics, as some policies may exclude rental car coverage or limit it to specific countries. ​

Some credit cards provide rental car insurance when the rental is paid using that card. This coverage can include collision damage but may not cover liability or other potential expenses. It's important to check with your credit card provider to understand the coverage details, including any exclusions or limitations. ​

• Steps to clarify coverage and liability: Before travelling, discuss your plans with your insurance company in Singapore to understand your coverage limits, exclusions, and any necessary endorsements for international rentals.​ Also, ensure that you understand the insurance options offered by the rental company and purchase additional coverage if necessary.​

Knowing the difference between primary and secondary insurance coverage is crucial for Singaporean travellers involved in rental car accidents overseas. This knowledge ensures that you are adequately protected and can navigate the claims process effectively.​

Primary coverage: This is the first to respond in the event of a claim. When you have primary coverage, it pays for damages or losses without requiring you to involve other insurance policies. 

Secondary coverage: This comes into play after your primary insurance has paid its portion. It covers costs that exceed the limits of your primary policy or fills gaps in coverage. Secondary coverage typically requires you to file a claim with your primary insurer first. ​

In Singapore, several credit cards provide travel insurance with rental car insurance benefits when you use the card to pay for the rental. However, most cards don't provide full liability or excess coverage, meaning you could still face significant costs in case of an accident. Be sure to check if your card offers adequate coverage especially for collisions or personal injuries.

​If you're involved in a rental car accident overseas and are not at fault, promptly notify your rental company and insurance provider. Obtain a police report, as some insurance policies require it for claims. Gather evidence, including photos and witness statements, to support your claim.

In Singapore, some credit cards may offer rental car insurance benefits. To ensure you are covered, check your credit card's terms and conditions before renting. Knowing your card’s benefits can help you avoid unnecessary expenses and enhance protection.

>> See more options: Best travel credit cards of 2025

Preparing for a potential accident while renting a car overseas is essential for Singaporean travellers. Understanding your coverage options and thoroughly reviewing rental agreements can help you avoid unexpected expenses and legal issues.

Review rental agreements carefully: Before renting a vehicle, meticulously read the rental agreement. Rental contracts often include an LDW or CDW, which can limit your financial responsibility in case of damage or theft.

Understand your insurance options: Many credit cards offer rental car insurance benefits when you use them to pay for the rental. Check with your credit card provider to understand the extent of this coverage, including any exclusions or limitations. Additionally, some travel insurance policies offer rental car accident coverage; verify the specifics of your policy before travelling. Be aware that standard travel insurance may not always include comprehensive coverage for rental cars overseas.

Purchase supplemental insurance if necessary: If your existing coverage is insufficient, consider purchasing supplemental insurance offered by the rental company, such as Supplemental Liability Insurance (SLI), Personal Accident Insurance (PAI) and others.

Document the vehicle's condition: Before driving off, inspect the vehicle thoroughly and document any existing damages. Taking clear photos or videos can serve as evidence in case of disputes regarding damage responsibility.

Familiarise yourself with local traffic laws: Understanding local traffic regulations can help prevent accidents and legal issues. Some countries have strict laws regarding speed limits, alcohol consumption, and road signs. Familiarising yourself with these rules can reduce the risk of accidents and potential fines.

Insurance Coverage: Travel Insurance Benefits

• The Citi PremierMiles Card offers excellent travel insurance benefits, including coverage for trip cancellations, medical emergencies, and lost baggage, ensuring peace of mind while travelling. Cardholders also enjoy complimentary access to Priority Pass airport lounges and earn Citi Miles on every purchase. For local spending, you earn 1.2 Citi Miles per S$1, while foreign currency spending earns 2.2 Citi Miles per S$1. These miles never expire, providing flexibility in redeeming for a variety of frequent flyer programs like KrisFlyer. Additionally, the card provides exclusive lifestyle and dining promotions, making it a great choice for those looking to maximize travel rewards. With a reasonable minimum income requirement, it serves as an excellent entry-level air miles card.

• Benefits and eligibility criteria vary by cardholder. For detailed information, please visit https://www1.citibank.com.sg/credit-cards/travel/premiermiles-card.

How to maximise your credit card rewards?

Maximising your credit card rewards can greatly reduce travel expenses and improve your rental experience. Here are some of the top travel credit cards to consider:

• Best cashback for shopping and dining: HSBC Live+ Credit Card

• Best for frequent flyers: HSBC TravelOne Credit Card

• Best for overall cashback: UOB One Card

• Best for fuel discounts: Citi Cash Back+ Card

• Best for miles: Citi PremierMiles Card

• Best for cashback with no minimum monthly spending: Standard Chartered Smart Credit Card