Types of Car Insurance in Singapore and Things You Should Look Out for

Buying a car is optional, but buying car insurance when you own a car is compulsory in Singapore. Of course that is not necessarily a bad thing because if you happen to be in an accident, car insurance helps protect you from personal liability. Without it, you may end up burning a hole in your pocket to cover all the costs involved.

What are the types of car insurance available in Singapore?


Third Party Only motor insurance (aka liabilities coverage) only covers the other party. In other words, if you happen to hit a pedestrian, this insurance will pay for the other person’s damages—not you or your car. However, it must first be proven that you are the one at fault before the claims can be made. TPO is the cheapest of the three types of insurance plans.


This insurance plan covers more than just third party liabilities. In a case of vandalism, fire and theft, say if your car was stolen or was set on fire, you will also get compensated.


The comprehensive coverage is the most expensive one and it is also usually required by banks if you are applying for car loans. This plan has the broadest scope and covers you for death and injuries befallen to the other party, damage to the other party’s property, vandalism accidents related to theft and fire, and medical costs pertaining to the accident. Do note, however, that this insurance plan can only be offered to you on a case-by-case basis if your car is more than 10 years old.

If you want, you can put in some extra money for extra coverage on any of the three insurance plans such as windscreen damage, riots, strike and civil commotion damage, flood and windstorm damage, the liability of passengers, personal accident benefit for passengers, no-claim discount protection, and even a workshop of your choice.

What should you look out for before purchasing car insurance?

When purchasing car insurance, of course, you would want to find a plan that best suits your needs and budget. The cheapest car insurance policy as of 2018 was about $850 per year. The price differs as car insurance annual premium is calculated on a case-by-case basis. Meaning, your insurer will have to take some factors into consideration to decide how likely you are to be in an accident which will, in turn, affect the cost of your insurance plan. Here are some factors you should look out for:


The younger you are, the more expensive car insurance will be. If you are 30 to 65 years old, you can opt for the cheapest premium.


Unlike the typical stereotype of women being bad drivers, some insurers believe that women are safe drivers and charge them less for car insurance.


Married people can get cheaper premiums as they are seen to be more responsible.


As an “outdoor” job requires heavy car usage, insurance appears to be more costly as compared to insurance for those with an office job.


Longer driving experience (typically more than four years) results in cheaper car insurance.


Premium gets cheaper if there were fewer car insurance claims made in the past.


You get a 10% discount for every year you drive without claims. You can then accumulate your NCD up to 50% after 5 claim-free years.


You are entitled to a 5% discount off your car insurance (after deducting NCD) from selected insurers if you did not receive any demerit points in the past three years of driving.


More expensive car translates into more expensive premiums. This is due to the fact that continental cars, luxury cars and SUVs are more costly to repair. If you want a cheaper premium, opt for a more basic car.


The older your car is (up to 10 years old), the cheaper the premium. After that, as your car starts to disintegrate, the premium will go higher.


Depending on how long you drive your car daily such as driving to work or only driving on weekends, the price varies. If you rarely drive, chances for you to get in an accident is lower. If that’s the case, you can get cheaper premiums.

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