Car Insurance in Singapore: Find the Best Coverage for Your Needs
Having car insurance offers you protection while you are on the road. Car insurance could cover or lower your costs of car damage. It encompasses everything from your car encountering falling objects to getting stolen or vandalised. The cases when the car catches fire or is damaged because of floods and lightning, are accounted for too. Not only this, the insurance also covers any third-party injuries or property damage if the driver is liable for it.
In Singapore, where car prices are some of the most expensive in the world, cars are not seen as solely transportation apparatuses but are viewed as an asset. It would make sense to protect your asset by insuring them.
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Why Is Car & Motor Insurance a Legal Must in Singapore?
All vehicles are legally required to have motor insurance coverage to be driven in Singapore. Motor insurance is a prerequisite before you can renew your road tax. Your insurance must cover the entire road tax renewal period (usually a full year) before you can renew. The insurance must at least cover third-party liability such as deaths and bodily injury injuries and property damages. This is important so that victims of a traffic accident are covered by insurance
It is an offence to use a vehicle without valid insurance coverage. The penalty for this offence includes a fine of up to $1,000 or imprisonment of up to 3 months or both, and a mandatory disqualification from holding a driving licence for at least 12 months.
3 Types of Car Insurance in Singapore
Third Party Only (TPO)
TPO is the most basic and cheapest car insurance option in Singapore. It provides coverage for damages caused to third parties, including injury or property damage. However, it does not cover any repairs or damages to your own vehicle. TPO is suitable for drivers who are looking for minimal coverage and lower premiums.
Third Party, Fire and Theft (TPFT)
TPFT offers the same coverage as TPO, with added protection against fire damage and theft. While this type of car insurance still doesn't cover damage to your own vehicle caused by an accident, it provides an extra layer of security for those concerned about these additional risks. TPFT is often seen as a middle-ground option for those looking for affordable auto coverage while still mitigating some risks beyond third-party liabilities
Comprehensive Coverage
Comprehensive car insurance is the most extensive type of car insurance in Singapore. It covers third-party liabilities and damages to your own vehicle caused by accidents, fire, theft, or natural disasters. It may also include additional benefits like coverage for medical expenses or personal accidents. If you're looking for full protection, comprehensive coverage is ideal. While it comes with higher premiums, it offers peace of mind by covering a wide range of risks.
Choosing the right type of motor insurance depends on your individual needs and the level of protection you want for your vehicle. Whether you're seeking the cheapest car insurance or full comprehensive auto coverage, eazy Insurance can help you find the best plan and provide car insurance comparison services across Singapore's top providers.
How are Car Insurance Premiums Calculated?
Car insurance in Singapore typically starts from $700 annually, depending on factors such as the driver's age, driving history, vehicle type, and coverage options. Premiums can also vary significantly based on the level of protection chosen, such as basic third-party plans versus comprehensive car insurance.
Age
Older drivers will generally pay much less than young drivers as they're seen to have more experience.
Driving Experience
Experienced drivers with no claims will typically pay less than new drivers and young drivers as they present a lower risk.
Traffic Offences
Avoiding points on your licence helps keep your premiums low, as convicted drivers are considered a higher risk, thus incurring higher premiums.
Prior Claims
Your claims history, including any no claims discount, can make your premium cheaper.
Additional Drivers
Adding a named driver to your policy could mitigate your risk and decrease your premium if they are an experienced driver with no claims.
Voluntary Excess
The amount of money you elect to pay towards any car insurance claim. The higher this excess, the lower the price tends to be.
Workshop Choice
Insurers have a panel of authorised workshops which it has certified as legitimate and affordable. Choosing insurer “Authorized Workshop” plans are always cheaper as opposed to “Any Workshop” plans.
Step-by-Step Guide to Comparing Car and Motor Insurance Plans
Assess Your Needs
- Determine your coverage needs based on vehicle type, usage, and personal preferences.
- Decide between comprehensive car insurance or basic coverage like third-party insurance.
Compare Coverage Types
- Third-Party Insurance: Basic coverage for third-party accidents.
- Comprehensive Car Insurance: Covers both your vehicle and third-party claims, including theft, accidents, and natural disasters.
- Motor Insurance: Check if it includes personal injury and other risks.
Evaluate Premiums
- Compare premiums while ensuring sufficient coverage.
- Review deductibles and ensure they are affordable.
Review Claims Process
- Choose insurers with an easy, efficient claims process.
- Look for 24/7 claims support and quick response times.
Examine Add-Ons
- Roadside Assistance: Towing, fuel delivery, etc.
- Windscreen Coverage: For damage to your vehicle's windows.
- No-Claim Discount: Discounts for safe driving and no claims.
Check Insurer Reputation
- Look for reliable customer service and prompt claims handling.
- Read reviews and ratings to assess insurer reliability.
Make Your Decision
- Weigh coverage, premiums, claims process, and customer feedback before choosing the best plan for you.
How to Pick the Right Car Insurance Plan
Choosing the right car insurance plan can seem overwhelming, but breaking it down into key factors can help you find the perfect coverage for your needs and budget. Here's how to make an informed decision.
Match Your Insurance to Your Needs and Lifestyle
- Driving Frequency: If you drive daily, consider more comprehensive coverage, like comprehensive car insurance, for peace of mind.
- Vehicle Type: For high-value or luxury cars, ensure you have the right protection, such as motor insurance with extensive damage coverage.
- Usage: If you use your car for business, additional coverage may be needed, such as commercial auto coverage.
Budget-Friendly Tips for Choosing the Right Coverage
- Compare Premiums: The cheapest car insurance doesn't always mean the best deal. Consider the balance between premium costs and the level of protection you're getting.
- Choose the Right Deductible: Opting for a higher deductible may lower your premium. Ensure you can afford the out-of-pocket cost if you need to make a claim.
- Review Coverage Levels: For auto coverage, ensure you're covered for key risks like theft, accidents, and natural disasters while keeping premiums affordable.
Real Reviews and Advice from Fellow Drivers
- When doing a car insurance comparison, take time to read customer reviews and seek advice from friends or family members who have experience with certain
- Look for insurers with good customer service, quick claims processes, and clear communication about policy terms.
By matching the right coverage to your driving habits, finding a budget-friendly plan, and considering real-world feedback, you'll be able to select the best motor insurance policy for your needs.
What To Do When You Need to File a Car Insurance Claim ?
Stay Calm and Safe
- Immediately check if you or anyone else involved is injured. If there are injuries, call emergency services first.
- Move to a safe location if possible, and turn on your hazard lights to alert other drivers.
Document the Incident
- Take clear photos of the scene, including your vehicle, any damage, and the surrounding area. This will be vital for your motor insurance claim.
- Gather details from other parties involved: names, contact info, insurance details, and vehicle registration numbers.
Report the Incident
- Notify your insurer as soon as possible. Many companies offer 24/7 claims assistance, which you can access online or through their mobile apps.
- Provide all the relevant details, including the police report if required, especially for accidents involving third parties or property damage.
Assess the Damage
- For comprehensive car insurance, assess the damages to your vehicle and determine if repairs are needed immediately or if you can wait for the adjuster’s inspection.
- Some policies may require you to obtain quotes from approved repair shops.
Follow the Claims Process
- Take clear photos of the scene, including your vehicle, any damage, and the surrounding area. This will be vital for your motor insurance claim.
- Gather details from other parties involved: names, contact info, insurance details, and vehicle registration numbers.
Review Your Policy
- Make sure you understand your coverage before filing. Whether it’s auto coverage for accidents, theft, or natural disasters, knowing your policy limits helps manage expectations.
Keep Track of Communications
- Document all communications with your insurer, including emails and phone calls, to keep track of claim status and ensure no details are missed.
What other types of vehicles have motor insurance coverage?
Some of the most common vehicle insurance types, after private car, are:
Commercial Vehicle
Commercial Vehicle Insurance is coverage for business-use vehicles, oftentimes industrial and load-bearing. This can include trucks, lorries, vans, trailers, buses and coaches.
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Supercar
Supercar Insurance is an insurance policy designed to cover the different risks of owning and driving a high-performance car. These cars range from high to extremely high in value and have a low volume of production.
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Electric Vehicle
Electric Vehicle Insurance covers all vehicles with an electric battery and electric motor as its propulsion system. As the industry, infrastructure and production lines are still in their infancy, insurance for such “new” forms of electric transport is even tailing behind.
See more
Frequently Asked Questions
About Motor Insurance In Singapore
- Most comprehensive motor insurance offers coverage on loss of personal belongings (i.e. phones, laptops, cameras) as an add-on. If you have opted for such an add-on, loss of personal effects is covered in the event personal belongings are stolen due to forced entry into the motor vehicle. The incident will have to be supported by a police report.
What isn’t covered in insurance are not limited to the following:
- Wear and tear
- Depreciation
- Mechanical breakdown
- Negligence
- Damage due to illegal activities (driving under the influence, road racing)
- Damage caused by drivers without a valid licence
- Damage due to overloading
- Damage due to intentional acts
- Damage due to unapproved modifications
- In the event you are involved in a car accident, you are required by your car insurance company to file an accident within 24 hours.
Call eazy’s 24/7 Accident Assistance emergency hotline at +65 6333 2222. A reporting officer will go to the scene and file an accident report for you on the spot. If you have left the site, you can arrange for the reporting officer to meet at your preferred location.
- Yes. The LTA (Land Transport Authority) states that all vehicles should have motor insurance coverage before they can be driven in Singapore. It is also a requirement for your car to be insured for the entire road tax renewal period before the road tax can be renewed. The minimum coverage required is a third party only policy which covers injuries or damages caused to third parties.
- No. Unlike life insurance policies which are on an auto-renewal basis, automatic renewal of car insurance is not common in Singapore (though some insurers offer this). We believe that clients should be able to choose and review their policy with their insurance company before renewing.
- Excess refers to the amount of money that the policyholder must pay out-of-pocket towards a claim before the insurer will cover the remaining cost. In Singapore, car insurance policies typically have a standard excess amount, but policyholders may have the option to increase or decrease their excess amount in exchange for a change in their insurance premiums.
- Yes, you can purchase additional coverage for your basic car insurance. This is known as add-on or extension coverage.
Some common types of add-on coverage for car insurance in Singapore include:
- NCD Protector: Protects your No-Claim Discount (NCD) in the event of an accident or claim.
- Personal Accident: Provides coverage for death and permanent disabilities sustained in the event of an accident.
- Loss of Use: Reimburses you for the cost on loss of usage while your car is being repaired in the workshop
- Replacement Car Coverage: Provides a replacement car to use while your car is being repaired in the workshop.
- Accessories Coverage: Covers the cost of repairing or replacing accessories that are damaged in an accident.
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