Singapore's top car insurance providers in 2022

Everyone who wishes to drive a motor vehicle in Singapore is required to carry car insurance. Failure to do so brings several legal implications. Anyone caught driving without valid auto coverage can receive a penalty of up to S$1,000 and imprisonment of up to three months. They may also be barred from holding or obtaining a driving license for at least 12 months.

But legal consequences aside, getting car insurance also reaps a lot of benefits. Chief among these is the financial protection it provides once an accident occurs.

Read more: Despite more car accidents in Singapore, insurance claims are down

How does car insurance work in Singapore?

There are three main types of car insurance plans that drivers in Singapore can choose from:

1. Third Party Only (TPO)

This is the most basic form of coverage and comes with the lowest premiums. Although TPO is enough to meet Singapore’s basic legal requirements on auto coverage, this type of policy provides very limited protection.

As the name suggests, TPO covers property damage or bodily injury caused to a third party and only if the driver is at fault. It also does not protect the policyholder or their vehicle or passengers. TPO policies are recommended for people who rarely use their vehicles or own old cars, with expiring certificates of entitlement (COE).

2. Third Party, Fire & Theft (TPFT)

Although it may seem self-explanatory, the policy’s name does not say it all. Just like TPO, TPFT pays out for damages caused to a third party, but it also covers damages that the driver incurs. Losses resulting from fire and theft are likewise covered, but so is vandalism. All these additional coverages raise premium prices.

3. Comprehensive coverage

This type of policy offers the broadest protection, which includes events covered by both TPO and TPFT plans, albeit at a higher premium. Comprehensive plans also protect against damages caused by natural or man-made disasters and provide accident benefits for the driver and their passengers. Banks typically require those taking out a car loan to carry comprehensive car insurance. 

Apart from these three kinds of coverages, Singapore drivers can access a range of additional protection at an extra cost. These include coverage against flooding, windstorm, riots, and civil unrest, passenger liability, windscreen insurance, and no claim discount (NCD) protection.

Read more: Self-driving cars to drastically cut Singapore’s parking space needs

What do Singapore drivers need to consider when taking out car insurance?

To find out which car insurance policy that best fits their requirements, motorists in Singapore need to consider a range of factors. Some insurance companies even allow drivers to tweak certain elements of their plan, allowing them to access the right coverage. Here are some of these factors:

• Excess: A higher excess means cheaper premiums, but drivers must make sure they set an amount that they can afford.
• Named drivers: Policyholders are allowed to add drivers, including their spouse and children, to their policies, which has a corresponding impact on premiums. For those, who do not need to cover a younger driver, they can raise the age limit, for example to 30, 35, or 40 years, so they can lower their rates.
• Choice of workshops: Car insurance companies have a list of authorised workshops to carry out repairs. Drivers can opt to work with these firms to slash premiums.
• Loss of use: Motorists can access this benefit, which provides a mode of transport while their vehicles are under repair. This coverage is suitable for people whose livelihood depends on having their cars. Getting this benefit can likewise impact premium prices. 
• Overseas coverage: Suitable for those who frequently drive to Malaysia, this coverage is typically purchased as an add-on.
• NCD protector: Drivers who have achieved high NCD can benefit from this optional coverage, which prevents a rare claim from tarnishing their NCD record.
• Roadside assistance: Some auto policies provide complimentary round-the-clock assistance in the event of a car accident or breakdown, while others offer this benefit as an add-on.

Read more: Singapore’s lifting of car warranty restrictions to lower insurance costs

How much does car insurance cost in Singapore?

Because auto insurance premiums are calculated on a case-by-case basis, it is often difficult to give an accurate amount. Personal finance comparison website MoneySmart.sg estimates the figure to be between S$700 and $S1,000, depending on a range of criteria. The table below sums up how these factors affect premium prices.

What do the top car insurance policies in Singapore cover?

There are around 30 insurance companies across Singapore offering car coverage, according to the latest data from One Motoring, a motoring information and digital services provider operated by the government’s Land Transport Authority (LTA).

To find out which of these offers the best protection, the personal finance comparison website SingSaver analysed the auto insurance policies of several providers. These are the ones that came up on top. The rates in the table are based on a 35-year-old married male driver of a Mazda 3 1.6 (A) registered in 2018. The hypothetical motorist also has a clean driving record, five years of driving experience, and 50% NCD. Prices quoted are before the discounts offered by the providers and are up to date as of May 2022. The list is arranged alphabetically.

Source: SingSaver