Car Insurance in Singapore | Considerations Before Buying Car Insurance

Car Insurance | Insurance
by Priyadarshini 8 May 2024

If you are planning to purchase car insurance in Singapore, read this blog to know the important factors before buying car insurance.

Key Considerations When Purchasing Car Insurance in Singapore

Types of Car Insurance Coverage

The initial consideration when buying car insurance is the type of coverage it offers. Typically, there are three primary types of car insurance plans:

Third-Party Only: This basic plan provides coverage for injuries or fatalities involving a third party, as well as damage to their property. However, it does not include coverage for damage to your vehicle.

Third-Party Fire and Theft: In addition to the benefits of third-party car insurance, this policy also safeguards against fire damage or theft of your vehicle. However, it does not cover other damages to your vehicle.

Comprehensive: Encompassing the features of Third Party Fire and Theft, this plan extends coverage to include repairs or replacements needed for accidental damages to your vehicle. It may also offer personal accident and medical expense coverage.

Opting for Third Party Only is the minimum requirement for car insurance. For more extensive coverage, a comprehensive plan is recommended, protecting damages to your vehicle in the event of an accident.

Considerations for Policy Excess

The excess is the maximum amount payable out of pocket in the event of a claim, applicable only when at fault. For instance, with a policy excess of S$500 and a claim of S$2,000, you’d pay S$500 while the insurer covers the remaining S$1,500.

The chosen excess affects the insurance plan. Higher excesses lead to lower premiums and vice versa, as higher excesses mean more personal costs in case of an accident, resulting in reduced premiums.

Choice of Repair Workshop

Many insurers in Singapore prefer repairs at authorized workshops to ensure repair quality and costs. Opting for a plan allowing repairs at any workshop may incur higher premiums.

Additional Considerations for Car Insurance in Singapore 

  • Additional Driver: Adding a named or additional driver entails extra cost but provides insurance coverage for them.
  • Roadside Assistance: Plans offering 24/7 assistance can be beneficial, especially for newer drivers.
  • No Claims Discount (NCD): NCD affects premiums and can be protected with an NCD protector.
  • Daily Transport Allowance: Insurers may provide an allowance for each day your vehicle is under repair, with potential caps.
  • Overseas Coverage: Plans vary in coverage areas, so consider if coverage extends to areas like Malaysia.
  • Young Drivers: Expect higher premiums and excess due to less driving experience.


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