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How much does it really cost to rent a car in Singapore? With the Chinese Lunar New Year festivities round the corner, you may be thinking of renting a car to ferry your loved ones from house-to-house in comfort.
Apart from the basic rental fees, there are a number of additional fees to take into consideration prior to renting a car. In this article, we break down the key costs:
1) Fuel Cost
Fuel-efficiency is one of the key factors in the decision-making process of renting a car. Particularly for long-term rental drivers, the cost of fuel can amount to a sizeable portion of one’s budget. As such, there has been an increase in demand for fuel-efficient electric and hybrid cars recently.
Click here to find out the list of Top 10 Fuel-efficient Cars by Motorist.sg.
2) Personal Accident Insurance
Every driver on the road faces the risk of running into a traffic accident. It is vital to ensure that you are personally covered by insurance. The most common type of Personal Accident Insurance covers the personal liability, physical damage and medical expenses of the insured driver in an accident.
However, your Personal Accident Insurance does not cover the damages to the rental vehicle.
3) Collision Damage Waiver
This is where the Collision Damage Waiver comes into the picture. More commonly referred to as “Accident Excess”, it is a fixed maximum amount you have to pay in the event of an accident. The remaining cost of damage will be shouldered by the insurance company.
There are various types of Collision Damage Waiver. The standard Collision Damage Waiver covers just the bodywork of the car, excluding parts such as the tyres and windscreen. A more premium insurance policy may offer coverage of the entire car at a proportionately higher price. On the high end of the spectrum in terms of price, the zero excess insurance policy allows you to pay a fixed amount beforehand that removes you from all financial liability for any damages covered by the policy.
A security deposit is usually collected when you pick up your rental vehicle. The deposit is mandatory to safeguard the vehicle asset of the rental company. In the case where the rental customer causes damage or violate the terms and agreements in the contract, the rental company may then tap on the deposit to cover their losses.
However, this amount is fully refundable when you return the vehicle in the same condition as checked out.
5) Additional Driver Fee
Car rental companies typically charge for the addition of a second driver. This is because your Collision Damage Waiver will be extended to cover the second driver. It is essential to declare the additional driver(s) in your rental contract. If you skip this step, any insurance or damage waiver in place may be voided in the case where the relief driver is involved in an accident. The loss incurred in an accident far exceeds paying the nominal fee of adding a driver beforehand.
6) Malaysia Surcharge
There has been a rising trend of customers renting a ride to drive into neighbouring Malaysia. Especially during the Chinese New Year festive holiday, some take the opportunity to visit Malaysian friends and family while others score an affordable weekend getaway. However, some Singapore rental companies may restrict the use of their vehicles locally due to the concern of an increased risk of damage and loss. In the same vein, certain insurance policies do not cover beyond Singapore premises.
At ETHOZ, we offer our rental customers the option of driving into Malaysia. With a tailored Collision Damage Waiver package for drivers entering Malaysia, customers may have a peace of mind that the vehicle is covered in the event of an accident.
On top of the aforementioned, you may wish to clarify the cost as well as terms and conditions of extension or cancellation of the rental contract. Other standard expenditures borne by the rental driver include parking charges, ERP charges and traffic fines.
With the knowledge of these additional costs at the back of your hand, you are ready to rent a car!
With over 30 years of experience, ETHOZ is an established Car Leasing company highly recommended for our reliability and professional standard of service. We have a large fleet of vehicles to meet the needs and requirements of our customers. Speak to us at 6654 7788 or drop us an enquiry via the form below, we will be delighted to share more on our 2019 Chinese New Year Car Rental package.ETHOZ.
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