Singapore's top car insurance providers in 2022 | Insurance Business Asia – Insurance Business

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
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
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:
Read more: Singapore’s lifting of car warranty restrictions to lower insurance costs
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 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.
Impact on premiums
Car insurers often view women as safer drivers compared to men, thus charging them lower rates
Driving experience
Drivers with less than four years of experience are often charged higher premiums
Certain occupations are deemed high risk due to heavy car usage, which pushes up premium prices
Marital status
Some insurance companies see married individuals are more responsible drivers, resulting in lower rates for this demographic
Car make and model
Claims history
Drivers with fewer or no claims in the past are entitled to lower premiums
Car usage
The less a person drives, the cheaper the premiums as the likelihood of accidents are also lower
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.
Best for
Key features
Indicative annual premiums
Collision-related accident protection
Value for money
Young and demerit-free drivers
Getting 50% NCD for life and overseas coverage
HLAS – Car Protect360
Drivers with preferred workshops
Affordable premiums
NTUC Income – Drivo
Emergency assistance team and free NCD protector
Singlife with Aviva
Promotional rates and young drivers
Singtel – Car Protect
Affordable comprehensive coverage
Source: SingSaver

Licence will be applicable across life, general and health
Two-year full-time programme includes opportunities for overseas training
Global catastrophe losses have once again exceeded US$100 billion, new report reveals
Copyright © 2022 KM Business Information Australia Pty Ltd


Leave a Reply

Your email address will not be published. Required fields are marked *