Travel insurance with car rental excess: What it covers and how it works

Driving overseas is common for SG travellers heading to Malaysia for short trips, hiring a van to tour Australia, or taking a road trip in Europe. If you’re off on an adventure, you need decent protection in case anything goes wrong. One common measure is to take out travel insurance with car rental excess. This provides you with benefits if your vehicle is involved in an accident, stolen, or otherwise damaged, and you’re charged by your car hire company.

This guide explores travel insurance with car rental coverage from Singapore. We'll also introduce the Wise card, a handy travel companion to make seamless card payments when you're overseas.

Table of contents
What is car rental excess cover? What does it cover? What to consider when choosing a travel insurance policy 6 Best travel insurance with car rental excess FWD MSIG Singlife Allianz AIG Etiqa Travelling soon? Bring the Wise card along to maximise your foreign currency transactions

What is car rental excess cover?

Travel insurance car rental excess cover pays out if your car hire company charges you for losses or damage to the vehicle you’ve hired. This may be as a result of an accident, or if your car is stolen, for example.

Your car hire company may also offer you a Collision Damage Waiver (CDW) at an extra fee. This reduces the excess they will charge you in the event of damage, but it can be costly. Getting car travel insurance can be a good solution and offer peace of mind.

Some insurers include car rental excess automatically in some or all of their policies - but it’s an add-on you’ll need to pay extra for in some cases. Make sure you know what you’re covered for when you sign up.

What does it cover?

Let’s say you bought travel insurance for a car trip to Malaysia and were unfortunate enough to be involved in a minor collision. In this case, your travel insurance will typically cover costs charged by a car hire company due to accidental loss or damage to a rental car.

You may also be entitled to cover if there’s damage with no third-party involvement - a chipped or cracked windscreen, or a flat tyre as a result of hitting a kerb, for example.

In either case, the level of benefit available depends on the policy you select.

What does it not cover?

Generally, even if you have car rental excess travel insurance, you won’t be reimbursed unless you’re a named driver or co-driver of the rental car and you’re legally allowed to drive in the country you were travelling in. You must have been driving the vehicle when the accident occurred, and must have been fully compliant with both the driving rules of the country and the car hire company’s own usage policy.

What to consider when choosing a travel insurance policy

Here are a few things to check when choosing travel insurance with car rental excess:

• Is rental vehicle excess included or an add-on? Some providers only offer this coverage option on higher-tier policies, so you may need to upgrade to unlock it.
• What’s the coverage limit, and what’s excluded? Cover can be as low as around 500 SGD, which may not repay the full excess amount, so double-check the policy and your car hire agreement.
• Is cross-border driving allowed? If you’re taking a multi-country trip, make sure your insurance remains valid for all countries included.
• Do you get windscreen and tyre coverage? Despite being among the most common issues with cars, these areas are often excluded.

6 Best travel insurance with car rental excess: A comparison

Here’s a side-by-side look at 6 popular options for travel insurance with car rental excess - and there’s more on each right after the table.

Provider	Car rental excess cover	Overseas medical coverage	Trip cancellation coverage	Add-ons available	Estimated price (1 week trip, Asean)**
FWD¹	500 SGD - 1,000 SGD cover on Business/First plans	Unlimited on all policies	7,500 SGD - 15,000 SGD depending on plan	Add-on for car rental excess available for Premium Plan customers	From 34.79 SGD
MSIG²	1,000 SGD - 1,500 SGD on Elite and Premier plans	250,000 SGD - 1 million SGD for adults under 70, depending on plan	Up to 15,000 SGD depending on the plan selected	Add-ons not marketed - choose from a broad range of plan types instead	From 36 SGD (Select countries only - not valid for all of ASEAN)
Singlife³	500 SGD - 2,500 SGD, offered on all plans	250,000 SGD - unlimited depending on the plan	Not available on Travel Lite plan, 5,000 SGD - 7,500 SGD cover on other plans	Rental excess as standard in all plans	From 27.81 SGD
Allianz⁴	1,000 SGD - 1,500 SGD on Silver⁵ and Platinum⁶ plans	200,000 SGD - 1million SGD depending on the plan	1,500 SGD - 10,000 SGD depending on the plan	Add-ons not marketed - choose from a broad range of plan types instead	From 28.40 SGD (single trip to Malaysia basis)
AIG⁷	1,000 SGD - 1,500 SGD on Enhanced and Supreme plans	100,000 SGD - 2.5 million SGD for adults under 70, depending on plan	2,500 SGD - 7,500 SGD depending on the plan	Add-ons not marketed - choose from a broad range of plan types instead	From 64 SGD (single trip to Malaysia basis)
Etiqa⁸	1,000 SGD - 1,500 SGD on Deluxe and Suite plans⁹	200,000 SGD - 2.5 million SGD for adults under 70, depending on plan	5,000 SGD - 15,000 SGD depending on the plan	Add-ons not marketed - choose from a broad range of plan types instead	From 86 SGD (single trip to Malaysia basis)

*Details correct at time of writing - 3rd December 2025 **Estimated price only, based on the cheapest package that gets car rental excess cover. This quotation could change depending on your trip, age, requirements and other factors - get individual quotes for each provider to check the details for yourself

FWD

Overview: 3 different plans covering varied customer needs, with car rental excess in higher-tier plans, and an option to add on in cheaper plans

FWD insurance has different levels of cover plus add-on optional extras, to allow you to build the insurance package you need for your specific trip. Product highlights include unlimited emergency medical evacuation and repatriation on all package levels, as well as travel disruption, delay and cancellation cover at various levels depending on the plan you’ve selected.

Key features:

• Car rental excess as standard offering 500 SGD - 1000 SGD cover on Business/First plans
• Car rental excess as add-on option for Premium plans
• All plans offer unlimited overseas medical support
• Single-trip and annual plans on a regional and worldwide basis

Estimated price* (1 week trip, Asean): Business plan (including car rental excess), normal price 53.53 SGD, reduced to 34.79 SGD at time of research, with promotional deal

MSIG

Overview: 4 different plans, with basic cover up to premium plans with higher reimbursement levels - car rental excess cover available on Premier and Elite plans only

MSIG is a major travel insurance provider which has several different plans, including a very low-cost Lite plan that doesn’t include extras like rental excess. To get rental cover, you need Premier and Elite plans - but here the benefits are more comprehensive than some providers, with different cover elements for damage to the vehicle and problems with returning it if you’re ill or injured.

Key features:

• Premier and Elite plans offer car rental benefits
• Rental vehicle cover includes cover for damages and cover if you are unable to return the vehicle due to injury or illness¹⁰
• All plans have medical cover, but limits can be very low for the Lite plan
• Packages sold on a regional basis, Area A, B or Worldwide - choose carefully

Estimated price (1 week trip, Malaysia): Elite plan (including car rental excess), normal price 90 SGD, reduced to 36 SGD at the time of research, with a promotional deal

Singlife

Overview: Good value cover which offers car rental excess even on the most basic plans

Singlife insurance is available on 3 plans with extra add-ons if you choose them. The plans all include rental cover, which varies from 500 SGD - 2,500 SGD. Generate a quote online, and get your insurance all set up digitally, with discounts for new users.

Key features:

• Car rental excess of 500 SGD - 2,500 SGD, offered on all plans
• Add-ons available, including pre-existing conditions - other perks include excess rain coverage
• Medical cover runs from 250,000 SGD - unlimited, depending on the plan
• Available as single-trip and annual plans on a regional basis

Estimated price (1 week trip, Asean): Travel Lite (including car rental excess), normal price 46.36 SGD, reduced to 27.81 SGD at the time of research, with a promotional deal

Allianz

Overview: 3 different available plans, with car rental cover on the top 2 tiers, offering 1,000 SGD - 1,500 SGD of cover

Allianz travel insurance plans offer medical and COVID cover as well as travel cancellation, disruption and other benefits, although the specific coverage areas and limits depend on the plan you select. If you need car rental cover, you’ll want to choose one of the top tiers to unlock up to 1,500 SGD of cover on your trip.

Key features:

• 1,000 SGD - 1,500 SGD car rental excess cover on Silver and Platinum plans
• Plans offer COVID-19 cover as a standard feature
• Medical cover from 200,000 SGD - 1 million SGD, depending on the plan
• Add-ons are not marketed, so choose the plan you need carefully with reference to the policy wording

Estimated price (1 week trip, Malaysia): Silver (including car rental excess), normal price 71 SGD, reduced to 28.40 SGD at the time of research, with a promotional deal

AIG

Overview: 4 available plans, with car rental excess covered only on top-tier Enhanced and Supreme plans

AIG has different plans which have their own coverage areas and benefits, but you’ll need to generate a quote to see the options which are recommended for you and the costs and benefits associated. Fees may be reduced if you have a promotional code at the time you generate a quote, so check the main landing page to see if there are any offers at the time of buying.

Key features:

• Car rental cover from 1,000 SGD - 1,500 SGD on Enhanced and Supreme plans
• Medical benefits from 100,000 SGD - 2.5 million SGD for adults under 70, depending on plan
• Add-ons not marketed - choose from a broad range of plan types instead
• Discounts offered on annual and multi-trip plans

Estimated price (1 week trip, Malaysia): From 64 SGD (single trip to Malaysia basis) - promotional benefits may be available if you have a code

Etiqa

Overview: Choose from 3 Travel Infinite plans with car rental cover included on Deluxe and Suite plans

Etiqa has a good range of plans for travel insurance in Singapore, from Travel Infinite plans offering 3 variants and Tiq plans, which have different configurations. Car rental excess of 1,000 SGD - 1,500 SGD is included in the top tier of Travel Infinite insurance plans, with variable cover levels for cancellation, disruption and other potential issues with your trip.

Key features:

• Car rental excess of 1,000 SGD - 1,500 SGD on Deluxe and Suite plans
• Overseas medical cover from 200,000 SGD - 2.5 million SGD for adults under 70, depending on plan
• Etiqa offers Tiq plans in addition to the Travel Infinite plans, which may suit some customers better

Estimated price (1 week trip, Asean): From 86 SGD (single trip to Malaysia basis)

Travelling soon? Bring the Wise card along to maximise your foreign currency transactions

Having the right travel insurance can help protect you if something goes wrong with a rental car overseas. But it’s also worth thinking about how you’ll pay for everyday travel expenses, car hire deposits, fuel, tolls, and accommodation while you’re on the road.

The Wise card lets you spend in 40+ currencies at the mid-market rate including MYR, JPY, CNY, and USD so you know you'll be getting a great deal in over 150+ countries. Simply create a free Wise account, order a card and top-up SGD to get started.

Virtual cards are free and can be added to your Google or Apple Pay wallet, while a physical Wise card can be ordered for a low fee of 8.50 SGD. Having a physical Wise card allows you to make chip and pin payments, as well as 2 free ATM withdrawals to the value of 350 SGD each month, before low fees start.

While abroad, you can choose to spend with directly in SGD and let auto-conversion do the trick, or convert to your desired currency with your Wise account. Either way, you’ll get the exchange rate you see on Google, with low, transparent fees from 0.26%.

Plus, you can activate Wise Interest to earn returns* on your SGD and other currencies, meaning your travel money could be growing right up until you spend it.

*Growth is not guaranteed. Capital at risk.

💳 Get your Wise card

Final verdict: Which travel insurance with car excess is best for you?

There’s no single best travel insurance with car rental excess for Singapore customers. The right package for you will depend on the trip you’re planning on taking and the other coverage areas that matter to you. You may need to choose a more premium tier of insurance to qualify for car rental cover, or buy it as an add-on to your normal package, so weighing up a few different options is the best way to make sure you get value for money.

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Sources:

1. FWD
2. MSIG
3. Singlife
4. Allianz
5. Allianz Silver policy document
6. Allianz Platinum policy document
7. AIG
8. Etiqa
9. Etiqa Travel Infinite policy document
10. MSIG policy wording