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Comparing the different types of car insurance in Singapore
29 Jul 2024|2,691 views
If you're planning to buy a car, the dealer would have mentioned the requirement to have it insured. It is mandatory for all vehicles, whether new or used, to be insured before they can be legally driven in Singapore.
However, if you are a first-time car owner, the world of car insurance, also known as vehicle insurance or motor insurance, can be quite confusing and even daunting. There are numerous firms that seem like they're offering a myriad of plans, but don't worry - there's no need to feel stressed.
Broadly speaking, there are three types of car insurance plans that you can choose from. In ascending order of cost, they are: Third-Party Only, Third-Party Fire and Theft, and Comprehensive.
A Third-Party Only policy will not cover 'self-inflicted' damage
Affordability: Third-Party Only car insurance
Third-Party Only (TPO) motor insurance means that if a mishap occurs, the policy will only cover damage to other vehicles or property, and injuries to other people. It will not cover damage or repairs to your own car, which is why it is the most affordable of the three types of motor vehicle insurance.
For simplicity's sake, we will assume that the driver applying for insurance is a 32-year old single male with three years of driving experience. Since this is his first car, he does not enjoy any No-Claims Discount (NCD).
Let's also assume that the car to be insured is a five-year old, 1.6-litre Toyota Corolla Altis Classic. For this driver and his car, Etiqa quoted an annual premium of $1,551.79 for Third-Party Only insurance.
Pro: It's the least expensive type of motor insurance you can buy to legally drive your car in Singapore.
Con: This policy's coverage is the most limited, so if your car is damaged or stolen, and you are injured, you won't be able claim anything from this policy to help defray expenses.
If you have an older vehicle and frequently drive to Malaysia, a TPFT policy is better than TPO
Third-Party Fire and Theft (TPFT)
If basic motor car insurance seems too lacking and has you worried, then consider Third-Party Fire and Theft (TPFT) coverage instead. As its name indicates, this policy will also cover damage your car has sustained in the event of a vehicle fire, or if it is stolen.
TPFT can provide more peace-of-mind for owners of older vehicles. Or perhaps you frequently drive to Malaysia and simply want better coverage. Given these two scenarios, TPFT vehicle insurance might suit your needs more than TPO.
Using the above example of a 32-year old single male driver who wishes to insure a five-year old Corolla Altis, Etiqa quoted an annual premium of $1,911.75 for TPFT. That's $359.96 more compared to the TPO policy.
Pros: Your car will be covered if it is stolen or damaged by fire, so you have less reason to worry when driving to Malaysia. Having the car towed to a workshop or to a safer location following an accident is covered, too. That's not bad for an additional $30 a month.
Cons: It's surprisingly expensive - the annual premium for TPFT is almost on a par with Comprehensive insurance so at this point, you should probably opt for that instead.
A Comprehensive policy offers the most benefits in the event of a mishap
Costly and well-covered: Comprehensive car insurance
When it comes to protecting yourself and your vehicle, a Comprehensive motor insurance policy is the way to go. It has the same coverage as TPO and TPFT, but your car will also be covered in the event of an accident, fire or theft.
More importantly, Comprehensive car insurance also provides medical benefits to the driver in case he or she is injured. Depending on the insurance company and/or plan, the policy may even cover other passengers in the vehicle as well.
Shop around and check out the policies offered by different firms. There are Comprehensive schemes that cover items ranging from windscreen replacement/s to even damage sustained due to natural disasters/acts of God, which could include damage from floods or fallen trees.
Many Comprehensive schemes allow customers to choose whether the car will be repaired at a third-party or authorised dealer's workshop
And if you're the type of owner who'd also prefer to have the car repaired at the authorised dealer, there are Comprehensive insurance plans that include this option, too.
Pros: It's the most complete motor insurance you can purchase for your car, potentially giving you the greatest peace-of-mind.
Cons: Since it has the highest protection and the most benefits, it's also the most expensive option. Using the previous example of a 32-year old driver with three years of experience and no NCD, the annual premium is $2,026.70. That's $474.91 more than the Third-Party Only policy.
The next step
Shopping for motor insurance is easy with Sgcarmart! Simply click here to access our handy car insurance comparison tool, and fill in your personal and vehicle details.
These will be sent to our network of providers. You will then receive three personalised insurance quotes after one to three working days. That's way more convenient than filling out the same application form over and over again to different companies.
Whether you're buying a new policy or looking to renew it, choosing from one of Sgcarmart's partner providers helps ensure that you're getting the best value for your money. More importantly, you can rest assured that you're being shown the promotions that are most suited to you and your vehicle.
If you're planning to buy a car, the dealer would have mentioned the requirement to have it insured. It is mandatory for all vehicles, whether new or used, to be insured before they can be legally driven in Singapore.
However, if you are a first-time car owner, the world of car insurance, also known as vehicle insurance or motor insurance, can be quite confusing and even daunting. There are numerous firms that seem like they're offering a myriad of plans, but don't worry - there's no need to feel stressed.
Broadly speaking, there are three types of car insurance plans that you can choose from. In ascending order of cost, they are: Third-Party Only, Third-Party Fire and Theft, and Comprehensive.
A Third-Party Only policy will not cover 'self-inflicted' damage
Affordability: Third-Party Only car insurance
Third-Party Only (TPO) motor insurance means that if a mishap occurs, the policy will only cover damage to other vehicles or property, and injuries to other people. It will not cover damage or repairs to your own car, which is why it is the most affordable of the three types of motor vehicle insurance.
For simplicity's sake, we will assume that the driver applying for insurance is a 32-year old single male with three years of driving experience. Since this is his first car, he does not enjoy any No-Claims Discount (NCD).
Let's also assume that the car to be insured is a five-year old, 1.6-litre Toyota Corolla Altis Classic. For this driver and his car, Etiqa quoted an annual premium of $1,551.79 for Third-Party Only insurance.
Pro: It's the least expensive type of motor insurance you can buy to legally drive your car in Singapore.
Con: This policy's coverage is the most limited, so if your car is damaged or stolen, and you are injured, you won't be able claim anything from this policy to help defray expenses.
If you have an older vehicle and frequently drive to Malaysia, a TPFT policy is better than TPO
Third-Party Fire and Theft (TPFT)
If basic motor car insurance seems too lacking and has you worried, then consider Third-Party Fire and Theft (TPFT) coverage instead. As its name indicates, this policy will also cover damage your car has sustained in the event of a vehicle fire, or if it is stolen.
TPFT can provide more peace-of-mind for owners of older vehicles. Or perhaps you frequently drive to Malaysia and simply want better coverage. Given these two scenarios, TPFT vehicle insurance might suit your needs more than TPO.
Using the above example of a 32-year old single male driver who wishes to insure a five-year old Corolla Altis, Etiqa quoted an annual premium of $1,911.75 for TPFT. That's $359.96 more compared to the TPO policy.
Pros: Your car will be covered if it is stolen or damaged by fire, so you have less reason to worry when driving to Malaysia. Having the car towed to a workshop or to a safer location following an accident is covered, too. That's not bad for an additional $30 a month.
Cons: It's surprisingly expensive - the annual premium for TPFT is almost on a par with Comprehensive insurance so at this point, you should probably opt for that instead.
A Comprehensive policy offers the most benefits in the event of a mishap
Costly and well-covered: Comprehensive car insurance
When it comes to protecting yourself and your vehicle, a Comprehensive motor insurance policy is the way to go. It has the same coverage as TPO and TPFT, but your car will also be covered in the event of an accident, fire or theft.
More importantly, Comprehensive car insurance also provides medical benefits to the driver in case he or she is injured. Depending on the insurance company and/or plan, the policy may even cover other passengers in the vehicle as well.
Shop around and check out the policies offered by different firms. There are Comprehensive schemes that cover items ranging from windscreen replacement/s to even damage sustained due to natural disasters/acts of God, which could include damage from floods or fallen trees.
Many Comprehensive schemes allow customers to choose whether the car will be repaired at a third-party or authorised dealer's workshop
And if you're the type of owner who'd also prefer to have the car repaired at the authorised dealer, there are Comprehensive insurance plans that include this option, too.
Pros: It's the most complete motor insurance you can purchase for your car, potentially giving you the greatest peace-of-mind.
Cons: Since it has the highest protection and the most benefits, it's also the most expensive option. Using the previous example of a 32-year old driver with three years of experience and no NCD, the annual premium is $2,026.70. That's $474.91 more than the Third-Party Only policy.
The next step
Shopping for motor insurance is easy with Sgcarmart! Simply click here to access our handy car insurance comparison tool, and fill in your personal and vehicle details.
These will be sent to our network of providers. You will then receive three personalised insurance quotes after one to three working days. That's way more convenient than filling out the same application form over and over again to different companies.
Whether you're buying a new policy or looking to renew it, choosing from one of Sgcarmart's partner providers helps ensure that you're getting the best value for your money. More importantly, you can rest assured that you're being shown the promotions that are most suited to you and your vehicle.
