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.
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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.
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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:
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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.
Factor
Impact on premiums
Age
Gender
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
Occupation
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.
Insurer
Best for
Key features
Indicative annual premiums
AIG
Collision-related accident protection
S$825.24
Allianz
Value for money
S$854.17
Etiqa
Young and demerit-free drivers
S$1,161.34
FWD
Getting 50% NCD for life and overseas coverage
S$918.68
HLAS – Car Protect360
Drivers with preferred workshops
S$1,336.15
MSIG
Affordable premiums
S$825.24
NTUC Income – Drivo
Emergency assistance team and free NCD protector
S$1,004.13
Singlife with Aviva
Promotional rates and young drivers
S$1,057.54
Singtel – Car Protect
Affordable comprehensive coverage
S$831.70
Source: SingSaver
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