Is Car Rental Insurance Expensive In Singapore?
|If you live in Singapore, you definitely know from
experience that there are other expenses that you are
required to meet when you rent a car other than the rental
price. One of them is the insurance. Even though there are
companies that will insure the cars before they give them to
customers, others will require you to do it on your own.
Regardless of the agreement that you come up with, one thing
that is without a doubt is that there always will be an
addition to the costs. This has got many people complaining
that car rental insurance is too costly. To determine the
credibility of such claims, here is a look at some of the
most important factors that companies often consider when
calculating the cost of insuring a rental car in Singapore.
There is greater risk of accident when the car is rented
When you rent a car to someone whom you are not even
familiar with, there is no doubt that there will be a
greater risk. This is because you have no idea of how they
drive or what they are likely to do with the car. Indeed,
there have been cases of people who are reckless with such
vehicles because they know that they do not belong to them
after all. This is a crucial factor that will always come
into play when companies calculate the insurance cost of a
certain car. Although many people do not understand it, this
is the reason why it might seem that the cost of insuring a
personal car is relatively lower than when the car is
rented. However, if you look at it from this angle, you will
agree that there is need to have a higher rate.
The driver’s records also matter
Another thing that you need to know is that there is a
difference in the driving records of every individual. Just
as when insuring any other kind of car, a company is likely
to charge this type of insurance higher to someone who is
known to have a bad driving record. If you take a look at
some of the records, you will be astonished to realize that
there are people who have had too many accidents. This means
that when you show up at an insurance company to get a cover
for that vehicle, you definitely will have to pay more. The
worst scenario is when the company declines to insure you at
all owing to your records. If this happens, then it only
means that you will have to either look for another person
to drive the car or just look for another means of transport
for whatever reason you needed to hire the car.
The car rental companies need to cushion their businesses
It also is important to understand that car rental in
Singapore is a business. Here is someone who is giving your
their car so that you can easily move around town or to
wherever you want to. In as much as they want to do it, they
also want to make sure that they will remain I business.
There is nothing bad as having a car written off without any
compensation just because the person that was driving it was
not insured. If this was to go on, then you can be sure that
before long, most of the companies will be out of business.
This definitely is not what people are looking forward to
considering the fact that the government and the private
sector in Singapore alike are always working hard to ensure
that businesses such as these thrive. Another thing that you
should know is that this kind of insurance is for your own
good. Failure to have a good insurance cover does not only
put you at loggerheads with the law – it also affects your
The bottom line is that even though it is true that costs of
insuring rented cars in Singapore is a little higher than
that of the normal cars, it is a point that is justified.
After all, this is a car that you only will be using for a
short duration and so, there is no need to complain too much
about it. YOu can also chose an affordable company if you