AAS RoadPlus+ overseas rental car insurance: Not what I was hoping for

Rental car insurance is a common headache for travellers. 

Purchasing the rental company’s Collision Damage Waiver (or CDW, technically not insurance but practically the same thing) can be very expensive, adding as much as S$50 per day to the cost of the rental. Travel insurance can offer some coverage, but usually in the range of S$1,000-S$2,000, which many travellers may find inadequate.

That’s why I was intrigued to read about the launch of Singapore’s first third-party car rental insurance policy, AAS RoadPlus+. Priced from S$198 per year, it offers up to S$10,000 of coverage for damage to overseas rental cars. 

Unfortunately, it’s not quite what I was hoping for, and travellers looking for cheaper rental car coverage have much better options at their disposal.

What is RoadPlus+?

RoadPlus+
👍 The Good	👎 The Bad
Covers up to S$10,000 of rental car excess	Still have to purchase basic CDW Relatively expensive compared to other third-party car rental insurance Limit one claim per policy Does not cover rentals in the USA

AAS RoadPlus+ is underwritten by ECICS Insurance Singapore, and available for purchase any time before the rental begins by anyone aged 19 to 99, regardless of whether they have an AAS membership. 

What does it cover?

RoadPlus+ provides coverage for the named driver on the rental contract, as well as any additional drivers who are authorised to operate the vehicle. 

The following events are covered.

In the event of any damage, you will be required to pay the rental company first, then file a claim for reimbursement with RoadPlus+.

How much does it cost?

RoadPlus+ is offered as an annual plan, with the pricing dependent on trip duration and location.

It’s worth highlighting that the worldwide plan explicitly excludes the United States, so you’ll have to look for an alternative if you’re planning to rent a car there.

As for the pricing, think about it this way: the premium is dictated by the cost of your most expensive trip.

For example, if I have three trips in a year:

• Trip 1: Australia, 6 days
• Trip 2: Thailand, 3 days
• Trip 3: Italy, 16 days

I will need to purchase the Worldwide plan, with coverage for 21 days (there’s no pro-rating of premiums), at a cost of S$408.

How much coverage is provided?

RoadPlus+ has a limit of one claim per policy, up to a maximum of S$10,000. 

If you make a claim, you will have to purchase a new policy to get protected again.

How fast are claims processed?

RoadPlus+ quotes a 10 working day timeframe for reimbursements, but also caveats that it’s not guaranteed. 

What’s the problem?

The problem with RoadPlus+ is that it’s intended to provide coverage beyond basic CDW, such as the deductible, or damage to the underbody, tyres and windscreen. 

When you rent a car overseas, rental companies often only offer Basic Collision Damage Waiver (CDW) or similar coverage, which typically only covers damage to the vehicle but leaves you with a high excess charges or deductible.

With RoadPlus+, we cover the excess charge and related fees, ensuring you’re not stuck with large bills if something goes wrong.

-AAS

In other words, RoadPlus+ still requires you to purchase CDW from the car rental company. 

Note: RoadPlus+ Excess Protector requires you to have at least the basic Collision Damage Waiver (CDW) or equivalent rental insurance provided by the rental company.

RoadPlus+ works alongside your rental coverage – it does not replace it.

-AAS

And that, to me, basically defeats the purpose. Rental company CDW can be very expensive. For example, Hertz Australia charges A$292.74 for LDW (another name for CDW) coverage on a week-long rental. That’s more than 70% the cost of the base rate!

Here’s another example from Germany with Europcar, where adding CDW turns a $48.43 daily rate into $86.48. 

I’m not going to say that CDW is always crazy expensive— I have done a few rentals with smaller car companies like Apex in New Zealand and Burswood in Australia where basic CDW was included in the rate.

That said, what I really want is a product that removes the need to buy CDW altogether, which means it’s time to look at alternatives…

What are the alternatives?

Travel insurance

Most travel insurance policies will cover some amount of rental vehicle excess, though the coverage limits are much lower than the S$10,000 offered by RoadPlus+.

Unfortunately, most of these policies require you to purchase CDW from the rental car company as well, so we run into the same problem as with RoadPlus+.

As part of the hiring arrangement, You must take up comprehensive motor insurance against loss or damage to the Rented Vehicle during the rental period.

-Singlife

Note: “Comprehensive” doesn’t mean you need to buy the highest tier of CDW, otherwise this benefit would be of no use! Buying basic CDW will suffice.

Third-party rental car insurance

Given the limitations of RoadPlus+ and travel insurance, my preferred solution is still to purchase third-party rental car insurance from outside of Singapore. 

One company I’ve used before is Worldwide Insure, which offers single trip plans, or an annual plan for £129 (~S$225) that covers rentals of up to 60 days. The Deluxe tier will reimburse any excess up to £50,000 (~S$87,000), with a deductible of £75 (S$130).

The main thing to flag is that Iceland is excluded from coverage. Also, I’ve never had to make a claim before, so I can’t speak to how easy the process is— that said, there are a few success stories in the MileChat from other users.

Another option is RentalCover.com, which quoted me US$9.70 per day for a car rental in the USA, with no deductible. 

Both policies can be purchased by Singapore residents, and the way I see it, offer superior coverage to RoadPlus+ at a better price.

I wish credit cards here offered car rental insurance!

Some time ago, I was driving around Canada with a friend. A truck backed into our car in a parking lot, damaging the paint and leaving a big dent.

The rental company (National) sent a bill for C$2,288.75 worth of repairs and loss of use. Fortunately, my friend had paid for the rental with his US-issued American Express Marriott Bonvoy Brilliant Card, so it was a simple matter of filing a claim. A few weeks later, American Express paid the bill in full. We didn’t have to purchase CDW— in fact, if we did, then American Express coverage would not apply. 

I was very impressed by how smooth the process was, and it made me wish we had something similar in Singapore!

And actually, we used to. Once upon a time, the complimentary travel insurance provided by World Elite Mastercard would cover rental car damage of up to US$50,000, provided you paid for the rental with your card.

Unfortunately, this was removed some years back, and at the moment I’m not aware of any credit card in Singapore offering this benefit.

Conclusion

RoadPlus+ offers Singapore’s first third-party rental car insurance option, but unfortunately, it’s not the product I’ve been waiting for. That’s because RoadPlus+ is not a substitute for buying CDW. Instead, it’s designed to cover the things that CDW doesn’t. 

Given how expensive rental company CDW can be, my preference would be a product that removes the need for it completely. Thankfully, there are cost-effective third-party insurance options sold by Worldwide Insure or RentalCover.com which provide exactly that.

Do you know any other options for affordable rental car coverage?