Motor Insurance Myths Debunked: Must-Check Facts for Drivers

Purchasing a vehicle in Singapore is undoubtedly an expensive investment. This is why it is important to get motor insurance in order to protect a valuable asset. However, there are well-circulated insurance myths surrounding it that can lead drivers to make uninformed decisions about their coverage options. To help you separate fact from fiction, we take some of the most common myths about motor coverage and reveal the truth behind them.
Myth 1: All Policies Are the Same

One of the most common misconceptions is that all motor insurance policies are identical. This is far from the truth.
Auto coverage policies vary significantly in terms of options, premiums, and benefits. For example, some policies may include additional features such as roadside assistance, while others may focus on basic third-party liability.
To ensure you get the best deal:
- Compare policies from multiple business insurers and providers.
- Look for coverage that suits your specific driving habits and vehicle type.
Taking the effort to research and compare different policies will help you to identify or even create a tailored plan that meets your specific needs, minimising unnecessary costs or insufficient coverage.
Myth 2: Comprehensive Insurance Covers Everything
While comprehensive insurance is often considered the most robust type of auto coverage, it does not cover every possible scenario.
Comprehensive insurance typically includes:
- Coverage for theft, fire, and vandalism.
- Repairs for damage caused by accidents.
However, there are certain exclusions, such as:
- Wear and tear.
- Damage resulting from illegal driving activities, such as drunk driving.
- Personal belongings stolen from your car.
Understanding these limitations prevents you from getting caught off-guard when filing a claim. Be sure to read and scrutinise the details on your motor insurance carefully and consider getting add-ons if you require extra protection.
Myth 3: Higher Premiums Mean Better Coverage
Many drivers assume that paying a higher premium guarantees superior coverage, but this is not always the case.
A policy with a high premium might include features you do not necessarily need, or it could simply reflect factors like your driving history or vehicle type. Conversely, a lower premium could still provide adequate protection if the plan is tailored to your requirements.
To make informed decisions:
- Focus on the terms and conditions of the policy rather than just the cost.
- Assess whether the policy provides the coverage options that matter most to you, such as third-party liability, collision, or personal accident coverage.
When evaluating car insurance plans, value for money is key—select a policy that offers the right balance between cost and coverage.
Learn More: 5 Insider Tips to Save on Car Insurance
Myth 4: Only New Cars Need Insurance
Some drivers believe that older vehicles do not require comprehensive insurance or any insurance at all. This is not only a myth but also a potential legal violation.
In Singapore, all vehicles must have at least third-party liability auto coverage to be roadworthy. Regardless of a car’s age, accidents can result in significant costs, including:
- Repairs or replacement parts.
- Liability for damages to other vehicles or property.
- Medical expenses for injuries caused to others.
Older cars may also have sentimental or functional value, making it worth insuring them adequately. You should also evaluate the driving facts and risks associated with your specific vehicle to determine the best level of coverage.
Myth 5: You Can't Change Your Policy Mid-Year

Many drivers believe they are locked into their motor insurance policy for the entire policy period, but this is not always true.
Most insurers in Singapore allow policyholders to:
- Adjust coverage to suit changing needs, such as adding drivers or upgrading the policy.
- Cancel the policy and switch to another provider if needed, though this may involve cancellation fees or a refund adjustment.
If your circumstances change, do not hesitate to contact your provider. For instance, you may have purchased a new car or improved your driving record, which would normally qualify you for better rates or additional benefits. Being proactive allows you to adjust your motor insurance accordingly and reap the rewards.
With better clarity over these misconceptions, you can now accurately assess their insurance options and make wiser decisions. However, if you require additional help navigating a sea of information, Eazy Insurance is here to help. We are an experienced insurance broker with over 10 years in the industry, having dedicated ourselves to making insurance easy to understand and compare for people from all walks of life. We also help clients liaise with providers like auto and business insurers to get the best possible coverage within their budget, because we believe that adequate protection should be accessible to all.
To learn more about how we can help you with your vehicle insurance, please contact us today.