Having car insurance in Singapore is a must for all car owners due to legal rules. Many companies are competing to sell car insurance in this crowded market. If you try to find car insurance costs online, you’ll see it’s tough to pick the right one. The usual yearly costs in Singapore are from S$700 to S$1,000.
So, how do you pick the best one?
Choosing insurance can be tricky. Car insurance can have many extras and services. It also takes into account your age, how long you’ve been driving, and imarital status. In the next sections, we’ll help you compare car insurance. We’ll show you how to pick a policy with the lowest cost that meets your needs.
What is Car Insurance and What Does It Cover?
Car insurance is a contract between you and an insurance company that safeguards you from financial loss in case of an accident or theft. In exchange for a premium, the insurance company agrees to cover the losses as outlined in your car insurance policy.
A standard car insurance policy typically offers three kinds of protection:
- Property: Covers damage to or theft of your car.
- Liability: Takes care of your legal responsibilities for bodily injury or property damage.
- Medical: Covers medical costs arising from car accidents, such as treatment for injuries, rehabilitation, lost wages, and even funeral expenses.
However, you have the freedom to add or remove coverage from your car insurance policy based on your specific needs. Insurance companies today offer more flexible insurance options to cater to their clients’ unique requirements.
Types of Car Insurance Coverages
In Singapore, there are several types of car insurance coverage available to drivers. These coverages provide different levels of protection and may vary among insurance providers. Here are three main types of car insurance coverage:
- Third-Party Only (TPO) Insurance: The insurance is a legally required coverage protecting people except for yourself regarding injury and death caused by your car. Besides human loss, the insurance class covers property loss and damage caused by your vehicle. It is a liability insurance policy.
- Third-Party, Fire, and Theft Insurance: Besides the third-party coverage, this type of insurance covers damage or loss of your car due to fire and theft. It is a combined coverage of liability and loss or damage of your vehicle due to theft or fire.
- Comprehensive Insurance: It provides complete protection to your vehicles, such as repair, replacement, personal injury, and medical expenses caused by accidents apart from the third-party, fire, and theft coverage.
Other Car Insurance Add-Ons
Here are additional coverages that can be added to your primary car insurance policy. These add-ons provide extra protection and customization options to enhance your coverage based on your specific needs.
1. No Claims Discount(NCD)
You may pay less premium than a typical car insurance policy during renewal if your past claims record is healthy or your past claims are below the required number or a specified amount. An insurance company may offer a premium discount of up to 40% on your premium payment in the next renewal.
Moreover, if you file a claim, you can buy an NCD protector – an additional rider to prevent your NCD from cancellation or reduction.
2. Daily Transport Allowance
The benefit gives you an allowance compensating transport expenses incurred when your car is under repair. The standard allowance is a fixed amount distributed each time.
3. Car Insurance Excess
Insurance excess is an out-of-pocket expense for insurance compensation. A policy owner co-pays or shoulders a part of a claim expense before an insurance company pays the rest. The higher the insurance excess is, the lower the premium is lower.
4. Roadside Assistance
On-the-road help is all you need when your car breaks down. Insurance companies offer round-the-clock emergency services like car-towing and other ad-hoc services. The service is popular, especially for inexperienced drivers requiring guidance and assistance while wheeling on the highway.
5. Workshop for Repair
A car insurance policy may offer 2 choices of a car workshop in case of repair: a workshop of free choices or appointed ones. Some insurance companies even offer a combination. A free-choice workshop option allows a car owner to choose a workshop; however, an authorized workshop option requires car owners to choose from a list of workshops specified by an insurance company.
The premiums ranging from free option, appointed to a combination of 2, have the highest to lower. A customer should check for details before choosing a car insurance policy.
6. Coverage for An Additional Driver
A car insurance policy may accept an application from another driver besides a primary one. The additional driver may use the vehicle more frequently and get the same coverage as the primary insured. All a policy owner does is pay extra premiums for the coverage.
7. Young and Inexperienced Drivers
Insurance companies may charge higher premiums for this type of driver as they have a history of higher claims than others. Hence, if one or more insureds belong to this category, they should pay higher premiums once accepted by an insurance company.
The good news is a lower car insurance premium is available if an insured of this type has a good record of deals with an insurance company and has yet to file severe claims in the past.
Best Car Insurance Plans in Singapore 2023
Here is a list of the 10 best car insurance plans you must find helpful in choosing the most suitable for your situation:
|
Insurance Provider |
Special Features | Plans | Annual Premiums |
|
AIG |
|
Collision-Only, Car Insurance Complete |
S$1,056 (Collision) |
|
Allianz |
|
Third-Party Only, Third-Party, Fire & Theft Only, Comprehensive |
S$865 (Comprehensive) |
|
Etiqa Insurance |
|
Third-Party Only, Third-Party, Fire & Theft Only, Comprehensive |
S$835 (Third-Party Only) |
|
FWD Insurance |
|
Classic, Executive, Prestige |
S$919 (Classic) |
|
Income Drivo |
|
Drivo Classic, Drivo Premium |
S$1,004 (Classic) |
|
HL Assurance |
|
Car Protect360 |
S$1,336 |
|
MSIG |
|
MotorMax, MotorMax Plus |
S$825 |
|
Income |
|
Lite, Standard, Prestige |
S$1,312 |
|
Singtel |
|
Value, Essential, Premium |
S$832 (Essential) |
* Premiums are calculated based on a non-smoker, male with 5 years experience, and 50% NCD for a 5-year registered private car.
1. AIG — AIG Car Insurance: Best for Collision Protection
What’s special: AIG is a well-known insurer offering multi-insurance services in Singapore. The Collision-Only plan offers comprehensive coverage, including collisions with vehicles, damage caused by fire due to collisions with other vehicles, or damage by a hit-and-run incident. Moreover, the plan provides unlimited third-party coverage of death, injury, and property damage of up to S$5,000,000.
Besides, you can adjust premiums based on included drivers’ age, like 30, 35, or 40, and reduce premiums by specifying mileage for the next policy year.
Instead of the Collision Plan, you can choose its more comprehensive car insurance plan: Car Insurance Complete. Apart from the collision coverage, the Complete plan includes windscreen or windows, riots, flood, and theft benefits.
Plans: The Collision-Only & Car Insurance Complete
Annual premiums: S$1,056 (Collision)
Promotion: An eCapitaVoucher for S$200 for a successful application and an extra S$200 for the registration of AIG on the Go account
2. Allianz — Allianz Motor Protect: Best for Value for Premiums
What’s special: As a long-time renowned German insurer, Allianz offers a lifetime warranty on repair besides around-the-clock roadside assistance. Another selling point is getting a replacement car to continue wheeling on the road if your insured vehicle is 2 years old or less and deemed beyond repair. Even when it is under repair at a workshop, you can get a courtesy car to reduce disruptions.
Moreover, Allianz allows you to adjust motor insurance premiums based on your insurance excess requirements. Car owners can determine the premium amounts of favorable choice according to their situations.
Plans: Third-Party Only, Third-Party, Fire & Theft Only, Comprehensive
Annual premiums: S$865 (Comprehensive)
Promotion: N/A
3. Etiqa Insurance — Etiqa(Tiq) Car Insurance: Best for Young and Inexperienced Drivers
What’s special: Etiqa is an online Singapore insurer specializing in speedy services like claims processing, unlike other car insurance companies. For claims requests of S$5,000 or below, Etiqa can pay out claims in 30 minutes or less.
Besides, you can determine premium amounts based on your excess requirements to fit your budget and financial situation. In addition, Etiqa offers coverage to drivers as low as age 24: the best option for young drivers and drivers of fewer miles.
The “Drive More Save Less” add-on gives you up to a 30% cash rebate on premiums depending on the miles you’ve driven on the road in a year.
Plans: Etiqa (Tiq) Car Insurance for 3 coverages: Third-Party Only, Third-Party Only, Fire & Theft Only, Comprehensive
Annual premiums: S$835 (Third-Party Only)
Promotion: N/A
4. FWD Insurance — FWD Car Insurance: Best for the Lifetime NCD Guarantee & Unnamed Driver Coverage
What’s special: Like Etiqa, FWD is an insurer offering simple and streamlined application procedures online. One advantage a policy owner with FWD retains is a whole-life NCD if a car owner attains a 50% NCD and continues to stay with the company.
Another benefit is unnamed driver coverage. You don’t need to file a named driver to FWD other than yourself. In other words, any registered driver you permit to drive your car is under coverage.
Besides benefits offered to young and inexperienced drivers, FWD extends protection to West Malaysia and parts of Thailand.
Plans: Classic, Executive, and Prestige(the most expensive)
Annual premiums: S$919 (Classic)
Promotions: N/A
5. Income Drivo: Best for Roadside Assistance
What’s special: Income Drivo has a competitive advantage: Orange Force. Unlike other car insurance in Singapore, Its unique on-the-road assistance team provides emergent services like vehicles, medical, and other backup services to car owners and drivers.
The incomparable assistance services are more crucial to drivers unfamiliar with road accidents or car breakdowns requiring professional help.
Income Drivo also provides personal accident coverage of S$50,000 and medical expenses of S$10,000 for its policy owners.
Plans: 2 comprehensive car insurance plans: Income Drivo Classic & Premium
Annual premiums: S$1,004 (Classic)
Promotion: N/A
6. HL Assurance — HLAS Car Protect360: Best for Workshop Options
What’s special: HLAS offers a wide choice of workshops to clients. Clients can select to use their workshops to repair cars. But policy premiums are cheaper for policy owners with authorized workshops than those with free choices. Moreover, clients choosing lower premiums should pay more insurance excesses caused by a car accident.
Plans: Car Protect360
Annual premiums: S$1,336
Promotion: N/A
7. MSIG — MSIG MotorMax: Best for Budget Applicants
What’s special: MSIG, a local long-time insurance company, offers one of the cheapest car insurance premiums in town regarding coverage. The insurance company has a solid network of over 30 authorized workshops to serve its clients better.
What’s more, MSIG offers car loan protection to policy owners. The insurance company guarantees to pay off a car loan if a MotoMax Plus policy owner dies during the payoff period.
Besides, MSIG offers to get you a new car for replacement if it is 2 years old or less and beyond repair condition.
Plans: MotorMax & MotorMax Plus
Annual premiums: S$825
Promotion: Up to S$150 petrol vouchers & Up to S$70 rebates through PayNow
8. Income — Income Drivo for EVs: Best for Electric Vehicle Owners
What’s special: Income is the only insurance company in Singapore offering special coverage for electric vehicles only. What is unique about the EV insurance plan is its use of an annual rate and a pay-per-kilometer to determine premium rates.
Besides the general annual rate method, like other insurance companies, Income offers an unequaled rate calculation based on a client’s miles on the road. Therefore, a driver consuming fewer miles should adopt the pay-per-kilometer method to save more premiums.
Plans: Income Drivo for EVs
Annual premiums: A client should wait 3 days for rate results as it is a tailor-made quote.
Promotion: N/A
9. Singlife — Singlife Car Insurance: Best for NCD Policy Owners
What’s special: Singlife’s car insurance plan is NCD-friendly to clients, especially young and inexperienced drivers. Besides the lower entry age of 24, it does not impose additional insurance excess on the client class.
Singlife does not reduce your NCD or require an excess if it is not your fault in a car accident. More than that, the insurance company only caps the NCD penalty to a maximum of 10%. That means a client can retain 90% of his NCD even from a severe event. Singlife also offers non-smoker premium rates to male drivers.
Plans: Lite, Standard & Prestige
Annual premiums: S$1,312
Promotion: N/A
10. Singtel — Singtel Car Protect: Best for Drivers Requiring Personal Coverage
What’s special: Singtel Car Protect, underwritten by the Great Eastern company, offers a towing charge waiver to each client. If an insured car needs towing services, Singtel’s plan will rebate the S$300 bill by its professional team.
Plans: 3 plans are on offer: Value, Essential, and Premium
Annual premiums: S$832 (Essential)
Promotion: N/A
* Premiums are calculated based on a non-smoker, male with 5 years experience, and 50% NCD for a 5-year registered private car.
Tips to Get the Cheapest Car Insurance
The following tips can help you buy the cheapest car insurance about value worth:
- Determine the insurance type: You should choose one from the 3 types: Third-Party Only, Third-Party Only, Third-Party Only, Fire & Theft Only, and Comprehensive Insurance coverage. The plan selected should meet your insurance criteria for your car.
- Workshop Choice: A free choice or authorized workshop option may significantly impact premiums. If you like to choose a workshop of your favor, not on a list, you will have to pay higher premiums for your decision.
- Insurance Excess: An insurance company considers excess a critical factor in the rate calculation. Therefore, a client willing to pay higher out-of-pocket expenses can have a lower premium for his car insurance plan. Otherwise, he should pay higher premiums for a lower excess.
The excess effect is evident for young and inexperienced applicants, who should evaluate their financial and habitual conditions before choosing a suitable one.
Which is Cheaper? Which is Cheaper for Workshops of Free Choice?
Cheaper: Of the 10 insurance plans by the best companies in Singapore, MSIG’s MotorMax offers the lowest premium regarding the insurance benefits of worth. Besides a strong network of more than 30 authorized workshops, MSIG offers to replace a car less than 2 years old beyond repair.
Cheaper for workshops of free choice: HLAS Car Protect360 provides options for free choice and authorized workshops. In addition, it offers a 25% premium discount plus additional car maintenance services.
Final Thoughts
A car insurance policy is a legal must for car owners in Singapore. You may be overwhelmed by car insurance products with multi-purposes in the market. You must review your criteria before deciding on the best car insurance policy.
Key takeaways:
- Comparison is essential: When seeking car insurance in Singapore, it’s crucial to compare different insurance providers and their offerings. Consider factors such as coverage, premiums, add-ons, and customer reviews to make an informed decision.
- Tailor coverage to your needs: Car insurance providers in Singapore offer a range of plans and add-ons. Evaluate your specific requirements, such as collision protection, roadside assistance, or coverage for young drivers, and choose a policy that best suits your needs.
- Consider affordability and value: While cost is a significant factor, it’s important to strike a balance between affordability and value. Look for insurance providers that offer competitive premiums without compromising on coverage quality or customer service. Take advantage of promotions and discounts to make your car insurance more cost-effective.
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