As a car owner, you are legally required to have your vehicle insured. This may prompt you to go on a search for the best plan for you, but without professional knowledge and in-depth analysis, the sheer volume of car insurance information available online (and maybe offline too!) can be confusing and overwhelming.
We’re here to help. This article provides valuable insight into car insurance plans, like coverage types, accident protections, and other indemnities, so that you can make the best decisions based on your individual preferences and circumstances in searching for the best insurance plan for your car. Read on! If you’re looking to buy a car you can consider applying for a car loan.
Comparing the 10 Best Car Insurance Plans In Singapore
The table below highlights the popular motor insurance policies in Singapore:
Estimated annual premiums
|Policyholders favoring protection against collision-related accidents.
|policyholders preferring comprehensive and professional services
Budget Direct Insurance/ Comprehensive Car Insurance
|Budget policyholders looking for the cheapest car insurance
|Young or inexperienced drivers
HL Assurance/Car Protect360
|Policyholders opting for fringe benefits and flexible premium schedules
|Policyholders choosing specialized protections
NTUC Income/Drivo Premium
|Policyholders opting for free NCD Protector and generous roadside assistance
SingLife with Aviva/Prestige Plan
|Policyholders preferring low excess payments
|Policyholders favouring magnanimous medical coverage
*Premiums are for reference only. You should refer to insurance companies for premium details.
1. AIG/Complete Plan for collision-related accident protection
Premiums: S$1,030 (estimated)
AIG Asia Pacific Insurance Pte Ltd, a renowned general insurance company in town since 1953, has become known for providing auto collision-related coverage at a low premium compared to the same coverage provided by other companies.
The complete plan offers more benefits, for example, the loss of vehicle caused by theft, damage by neutral disasters like floods, besides the coverage of collision-related plan, windows or windscreen coverage with automatic benefit reinstatement(an excess of SGD100 before GST.)
- The complete plan offers liability to third-party and car damage due to fire and theft in an accident.
- The plan also covers damage and loss of vehicles caused by strikes, riots, and civic commotion.
- Furthermore, AIG offers add-on insurance as attachments to the complete plan. The add-on insurance riders include coverage of glass roof/moon roof/sunroof/panoramic glass roof.
- Additional optional coverage provides for the loss of cash compensation of SGD50 for up to 7 days. The other is the NCD Protector add-on for drivers with 50% NCD, including non-reduction of NCD for the first claim in the first policy year.
- Another benefit is the coverage of extended authorized drivers outside a policy owner’s household. The additional coverage covers solar film due to the damage to the windscreen, windows, and canvas top with an automatic restatement of the benefit(an excess of SGD350 before GST.)
- A high towing fee of up to S$500.
- The windscreen and window cover is an auto-reinstatement feature of the complete plan.
- Lower premium for drivers of age 30, 35, and 40, or limited coverage for the next policy year.
- Natural disaster coverage, e.g., floods.
- Authorized driver coverage is limited to household members only
- Approved workshops only.
- Lower excess for sharing in-car camera footage.
- Loss of income compensation applies to 7 days only.
2. Allianz/Comprehensive Plan for comprehensive and professional services
Premiums: S$900 (estimated)
A financial household name, Allianz has been serving Singapore’s retail, SMEs, and mid-corp markets since 1998. Allianz offers the best and most comprehensive car insurance for car owners at a reasonably low price.
- Apart from the third-party coverage and car damage due to fire and theft, policy owners of a comprehensive plan get more protection from loss and damage caused by accidents. But they should have the repair work performed at authorized or preferred workshops.
- Clients can get a taxi reimbursement of SGD100 and a towing fee of SGD500 per accident or breakdown. The authorized repair limit for the comprehensive policy is SGD350 per accident.
- When an insured car is under repair, a policy owner can get a courtesy car for up to 10 days per case. Or he may choose to get an allowance of SGD50 instead. And If the insured car is of age less than 2 years and beyond repair, you can get a replacement car by triggering a“New for Old” policy clause.
- Comprehensive insurance plan customers can get 24/7 Roadside Assistance service and unlimited windscreen coverage. Allianz is one of a few car insurance companies offering the “Agreed Value Payout at Total Loss” cover for free. A client should agree to a payout value at the start of a policy year.
- What distinguishes the other 2 policies is that a comprehensive plan holder can choose his favorite workshop to repair an auto. And it offers compensations of SGD50,000 and SGD25,000 due to death and permanent disability to the policy owner and each passenger. The additional medical expense of SGD1,000 is available to each passenger as necessary.
- Finally, you can choose the excess amount in case of a claim. The excess amount to be paid will undoubtedly affect the future premium.
- Lifetime warranty on repair services
- Legal representation and Defence expenses up to S$3,000 per accident.
- Unlimited windscreen cover
- Agreed value payout at total loss
- Workshops of free choice
- Repair warranty available at authorized workshops only)
- NCD protector available for applicants with NCD 30% or above.
3. Budget Direct Insurance/Comprehensive Car Insurance for cheap car insurance cover
Trading as Budget Direct Insurance, Auto & General Insurance (Singapore) Pte is an international insurance company headquartered in the British Isles. Besides car insurance, the insurer offers motorcycle and travel insurance to Singaporeans.
- Unlimited liability is available to third-party death and injury.
- Up to S$5,000,000 benefits are offered to third-party’s property.
- Up to S$3,000 legal costs against criminal charges are available.
- Policyowners can access car repair, replacement, and market value payments at no fault.
- Protection is accessible at your fault.
- Compensation is available due to fire theft and natural disasters.
- The insurer provides coverage against vandals, windscreen, and window damages.
- Free use of workshops.
- Additional S$50 allowance to get a car owner or driver back home after an accident.
- Windscreen cover is a part of the policy.
- Unnamed driver coverage.
- Area coverage includes Singapore only.
- No replacement for a car beyond repair.
- Incomplete covers
4. Etiqa/Comprehensive Plan for young or inexperienced drivers
Premiums: S$1,160 (estimated)
Etiqa, an online insurance company, is a member of Maybank Group and has a strong rating of “A” by the Fitch rating agency. Etiqa provides exceptional car insurance services to young and inexperienced car drivers, among other insurers.
- A plan holder is eligible for personal accident coverage of up to SGD50,000 due to a car accident and, including named drivers and passengers, is also eligible for medical expenses of up to SGD1,000 per person caused by a car accident besides third-party liability and car damage due to fire, theft insurance.
- Etiqa also offers an unlimited windscreen cover with an excess of SGD100 and a daily transport allowance of SGD50 for 5 days, a maximum if the repair is at an authorized workshop and exceeds 3 consequent days.
- The company offers flexible insurance excess premium policy. A policy applicant can choose several excess options to adjust policy premiums. The higher an insurance excess a policyholder chooses to pay, the lower the policy premium will be. A maximum cap of SGD2,500 excess is available. Etiqa will specify an excess of SGD500 for an unnamed driver if a claim arises. And other excesses for elderly, young, and inexperienced drivers are SGD2,000.
- You may not notice Etiqa has a child car seat cover reimbursing up to SGD300 for a car seat damaged in an accident. And it is free!
- An added-on coverage is Gap Cover. It insures against the difference of up to SGD80,000 between an outstanding car loan and its market value in a car’s total loss. Other insurance add-ons by Etqa include 1. Enhanced Protection and Removal After Damage or Loss insurance rider. 2. Loss of Use Benefit, 3. Medical and Dental Expenses, 3. 24/7 Roadside Assistance.
- Etiqa offers optional coverages like No-Claim Discount(NCD) Protector, adjustable excess, Sun/Moon cover, solar film cover, and workshop of your choice.
- Flexible premiums for excess amounts up to S$2,500
- Free choices of workshops
- A towing fee of S$200 is low.
- Daily transport allowance up to 5 days only.
- Allowance available for car repair exceeding 3 days.
5. FWD/Prestige Plan for long-term policyholders
Premiums: S$920 (estimated)
FWD began operations in Singapore in 2016 and is a composite insurer offering various insurance products to Singaporeans. FWD has been emphasizing easy-to-understand and customer-oriented products in serving clients.
- Comprehensive plan owners can enjoy 12 monthly premium installments interest-free if paying by OCBC Mastercredit or VISA credit card.
- Policyowners have a lifetime guarantee of 50% NCD for their car insurance renewal with FWD.
- Auto owners receive a daily transport allowance of SGD80 for 10 days, a maximum under repair.
- Prestige and Executive plan owners of comprehensive insurance policies can receive the courtesy car service for up to 3 months if their insured cars are stolen, written off, or in a workshop.
- Like other insurance plans, you can choose to purchase add-ons to enhance your insurance benefits.
- Family personal accident insurance and hospital income benefit are added-on insurance. You and your family can get SGD100 per day for up to 90 days for staying hospitalized even if the accident is not car-related.
- A benefit of SGD50,000 for the death or permanent disability is available to an insured and family members.
- You can choose a higher excess option to reduce the insurance premium. FWD can allow you to waive young driver excess to get full coverage. And you have the option to choose a preferred workshop.
- Replacement of lost or damaged car keys for up to S$1,000.
- Compensation for personal belongings up to S$2,000.
- Automatically eligible for lifetime NCD guarantee at NCD 50%.
- Car replacement service is limited to cars under 12 months old.
- Excess of S$2,500 for drivers under 27 years of age.
6. HL Assurance/Car Protect360 for fringe benefits and flexible premium schedules
HL Assurance is a member of the Hong Leung Group of Malaysia. Besides emphasizing a broad choice of workshops, HL Assurance offers policyholders fringe benefits, e.g., air-con paint protection and other free car treatments. The plan adjusts the premium based on your choice of workshops. Policyholders choosing the authorized workshop option pay fewer premiums than others choosing the option of free workshops.
- HLAS lets you choose your preferred workshop by providing a flexible premium and excess schedule. If you use HLAS-authorized workshops, a reduction of excess and premium is available.
- The Car Protect360 insurance covers loss or damage up to a market value on the day of the event due to fire, theft, natural disasters, fallen objects, riots, and strikes.
- A benefit of up to SGD1,000 is available for manufacturers’ standard equipment and car accessories like audio or videos.
- Unlimited windscreen cover is available with no insurance excess at HL’s approved workshops( otherwise, a policy owner should pay an excess of SGD100.)
- HL Assurance offers coverage of up to SGD5,000,000 for damage and an unlimited cover of death or Injury to third parties.
- Besides, you and an authorized driver, including passengers, get a medical expense reimbursement of up to SGD1,000 per person.
- Regarding personal accident benefits, a policy owner can get SGD20,000 and an authorized driver and passengers for SGD10,000.
- Other benefits include a daily transport allowance of SG50 and up to a total of SGD1,000 if your car is under repair for more than 3 days.
- The towing benefit is up to SGD500. HL Assurance allows you to perform minor repairs for a limit of up to SGD300 net of excess deductions.
- A 24-hour automobile and medical assistance service are ready at a policy owner’s request.
- HL Assurance also provides policyholders NCD protector and 24/7 Roadside Assistance services.
- Complementary car servicing, e.g., air conditioning treatment, paint protection, and 25% off pricing on other car services.
- Flexible premium and excess options according to choices of workshops
- High medical coverage of up to S$20,000.
- Self-repair allowance of up to S$300.
- Allowance available for car repair exceeding 3 days.
- Only one car insurance plan is available.
7. MSIG/MotoMax Plus for specialized protections
MSIG Singapore Pte Limited, an MSI subsidiary and a member of MS&AD Insurance Group, has over 100 years of operations in Singapore. The company holds an A+/Stable rating from Standard & Poor’s. MSIG’s auto insurance is the choice of budget policyholders.
- MotorMax Plus increases the personal accident benefits to policyholders, an authorized driver, and passengers up to SGD100,000 and SGD50,000 each.
- A member of MotorMax Plus can choose his favorite workshop to repair a car. He can get a transport allowance of SGD50 for up to 10 days if the period exceeds 3 days and the benefit dates back to the first.
- MotorMax Plus policyholders are eligible for “ New for Replacement” if an insured vehicle is at a total loss or a constructive total loss occurring during the 12 months of its first registration. MSIG replaces an identical model with a value up to SGD100,000 above the market value at the time of loss or may pay the difference. The coverage does not include floods, robbery, or theft losses.
- Apart from the above, a policyholder is eligible for an accidental death benefit of SGD100,000 related to an insured vehicle.
- Loan repayment for an insured car in case of death in an accident.
- Excess is waived if a windscreen is under repair.
- Geographic coverage extends to the west of Malaysia and a part of Thailand.
- The New for Old Replacement benefit applies to cars of 12 months or under.
8. NTUC Income/Drivo Premium for free NCD protector and generous roadside assistance
Drivo Premium plan holders can choose workshops of their favor and have solid roadside assistance backup from the insurer.
- Both plans offer protection against the loss and damage of insured vehicles up to the market value at the time of loss or damage.)
- NTUC also protects policy owners from fire or theft of vehicles up to the market value at the time of loss or damage.)
- The protection to the third party caused by an insured vehicle can be up to SGD5,000,000.
- The insurance coverage for the third party against death or injury is unlimited.
- Medical expenses insurance is a maximum of SGD1,000 per person.
- Personal accident benefits caused by a car accident are a maximum of SGD50,000.
- Both plans offer a towing fee of up to SGD500.
- Unlimited windscreen cover protection is available but subject to SGD100 excess.
- A typical excess of SGD600 is accessible to both plans.
- Regarding unnamed driver’s coverage, NTUC requires an insurance excess of SGD2,500 if an unnamed driver is under 27 years of age and has 1 year of driving experience. An excess of SGD500 is necessary only if the driver exceeds the abovementioned criteria.
- Clients can choose to add the NCD protector insurance to their basic plans if the NCD is over 30%. NTUC may add the benefit for free on renewal if a client’s NCD is 50% or above. Clients have obligations to inform the insurer of any accident happening to plan holders; otherwise, the insurer may reduce NCD by 10%.
- Clients can choose to add the daily transport allowance to their plans and purchase excess waiver rider for policies with excess not exceeding SGD600.
- Clients may enhance their benefits by buying Roadside assistance and wellness cover. The assistance rider increases the reimbursement of up to SGD200 per policy year or non-accidental roadside assistance services expenses. The coverage also includes medical expenses of up to SGD1,000 per policy year for cosmetic, reconstructive surgery, and pregnancy-related checkups due to client accidents.
- An additional personal accident coverage of up to SGD10,000 for pregnant clients.
- Unlimited death and injury to the third party.
- Unlimited windscreen cover subject to S$100 excess.
- Reimbursement of up to S$200 for non-accident roadside assistance.
- Additional medical coverage of S$10,000 for a pregnant policyholder.
- Free NCD Protector for policyholders with the last 2 consecutive NCD 50%.
- Daily transport allowance applies to the first 2 claims and 7 days only.
9. SingLife with Aviva/Prestige Plan for low excess payments
SingLife is a local composite insurer with a robust international backup. With a commitment to clients, The car insurance option offered is most suitable for young and inexperienced drivers.
- Unlike the standard plan, clients of the Prestige plan do not pay double excess for auto repair at non-approved workshops.
- The replacement condition extends from 12 to 24 months, and policyholders have a more extended coverage time frame.
- Clients of any age and no experience do not have to pay any excess for auto repair and windscreen damage.
- The prestige plan increases medical expenses up to SGD5,000 per person. The personal belonging coverage is SGD3,000 maximum.
- A daily transport allowance of SGD80 is available for up to 10 days.
- Besides, SingLife guarantees not to cut NCD and requires upfront excess payments if a policy owner is not responsible for the damage.
- Furthermore, the NCD penalty(if applicable) imposed is 10% maximum compared to 30% by other insurers.
- If you buy SingLife’s auto policy for 2 years’ premiums with UOB or DBS.POSB credit card, you can lock in the probable premium increase for the second year.
SingLife provides insurance add-ons to enhance coverage. Like others, clients can purchase an NCD protector and courtesy car service for 10 days maximum. A “Replacement locks and keys” rider pays for the replacement costs of your car security system. Finally, the additional personal injury cover offers up to SGD100,000 to policy owners and passengers during an auto accident.
- The Brand New Car Replacement applies to cars of 24 months or under.
- Free choice of workshops.
- Zero excess for young or inexperienced drivers.
- Zero excess for windscreen damage.
- Pickup service from the accident site.
- Up to S$500 for replacing a car key or its security system.
- NCD Protector applies to the first claim only.
- Courtesy car service applies to 10 days only.
10. SingTel/Premium Plan for magnanimous medical coverage
SingTel, the Singapore telecommunications operator, offers car insurance policies underwritten by Great Eastern General Insurance. The policy offers higher medical coverage due to car accidents at an affordable premium.
- A Premium plan owner can name his preferred workshop to repair or waive SGD500 for repairing the vehicle at the Greater Eastern’s authorized workshop.
- The policy offers compensation of SGD5,000,000 to a third party’s property and towing charges of up to SGD300 due to accidents.
- Personal accident benefits up to SGD120,000 and SGD50,000 are available to drivers and passengers.
- Unnamed drivers and passengers can enjoy the same coverage as policy owners.
- Free choice of workshops
- Medical accidental coverage of up to S$120,000 & S$50,000 for the policyholder and passengers.
- Policy is underwritten by Great Eastern General Insurance Co.
- Unnamed driver coverage.
- Lack of comprehensive coverage.
What Should I Consider in Choosing a Suitable Insurance Plan for My Car?
Unless you only need the basic coverage required by law, car insurance policies provide multiple protections for car owners, passengers, and properties, including your car, due to car accidents.
An unfortunate event relating to a car accident may cause a blow to you, your family, and your fortune. Your insurance plan should protect you and others from fallen perils in case you need it.
When choosing an auto insurance policy, remember to consider the following, which are critical and essential in your buying decision.
1. Coverage Types
You should determine the personal criteria for an insurance policy to select a coverage type. Besides legally required coverage, e.g., the liability for third parties, you may see insurance products covering losses due to personal bodies, indemnity, and properties when a car accident occurs.
Of these, 3 types of coverage are most popular in the Singapore market. The basic Third-party Only and a policy with the minimum add-on insurance, for example, the Third-party, Fire, and Theft. They are typical and standardised vehicle insurance policies covering third parties’ injury and property loss and additional coverage for loss and damage of insured vehicles due to fire and theft.
The Comprehensive policy, the 3rd type, including the former two types, covers more broad events caused by car accidents and offers across-the-board protection to car owners, drivers, and passengers. This policy kind is our comparison focus in the following.
2. Budget for Insurance Premiums
An insurance premium is a part of the running costs for your car. If you choose a minimum and statutorily required Third-party Only policy, the premium is the lowest, around S$1,500. You may pay two or three hundred dollars more to buy a basic policy with fire and theft insurance add-ons. Therefore, the 2 types of insurance coverage are appropriate options for budget car owners.
Opting for more protection for you and your family, you should choose comprehensive services providing broad coverage in case of an unfortunate event. The coverage may shield you whole or parts from catastrophic losses of income and properties.
You should choose the best insurance policy for your benefits. Premiums differ and range from S$1,500 to S$2,500, depending on insurance plans, coverages, insurance add-ons, and insurance companies. You will know the pros and cons regarding the comprehensive plan features offered by various companies if you read on.
3. Covered Workshops
Your choice of an auto workshop may increase the premium of your policy. You need a workshop when your car needs repair in an accident. If you request a choice of your preference over a workshop for service, insurance companies may add more insurance premiums to your policy due to potential costs incurred.
On the contrary, insurance companies may lure applicants into using authorized workshops by lowering premiums or may offer hybrid options and rewards to motivate car policyholders to moderate premium amounts.
Generally, free choice of workshops has the highest premiums, authorized workshops for repair have the lowest premium, and a hybrid of options is in the middle price range.
4. No Claim Discount(NCD)
A No Claim Discount is a premium reduction in a percentage applying to policy renewal. An insurance company grants an NCD to a client upon the renewal date if the claims filed for the last policy year are less than specified. A policyholder may pay 30% to 50% fewer premiums for an auto policy for the following year.
An insurance company also offers an insurance add-on called a No Claim Discount Protector. The NCD protector protects the possible reduction or cancellation of the add-on in case of a claim.
5. Insurance Excess
An insurance excess due to a claim is a compensation amount a plan holder should be responsible for; an insurance company pays the rest. A claimant requests a verified compensation of S$10,000 due to car damage in an accident. Your vehicle insurance policy specifies an excess of S$2,000. In this case, you should pay the first S$2,000 to the claimant, and an insurance company then pays the remaining S$8,000.
An insurance company may allow applicants to choose among excess options to adjust premiums. A policy with high insurance excess has lower premiums while the others with low excess require higher premiums.
In other words, a higher excess payment may outweigh the benefits of reducing premiums for a policy with a low excess when an accident occurs. You should review the ability to pay an excess with the premium budget in buying a car insurance policy.
6. Daily Transport Allowance
A daily transport allowance is a fixed amount of around S$80 per day to compensate for a transport expense. An insurance company distributes the allowance to a policyholder while an insured car is under repair due to an accident. You may consider including the insurance add-on to indemnify your travel expenses incurred during this period.
7. Roadside Assistance
It is an emergency service when your car breaks down on the road. Insurance companies provide Adhoc assistance and towing services besides the around-the-clock aid when you need it most.
New or inexperienced drivers may benefit most from the advice provided by the assistance at the time when getting confused and overwhelmed at an accident scene. You should consider the inclusion of the add-on by paying a little more premiums.
8. Young/Inexperienced Drivers
Young or inexperienced drivers aged below 27 are prone to higher premiums charged by insurance companies. Statistics show this driver class has a higher accident rate than others. The inclusion of young or inexperienced drivers may increase a policy premium.
But the premiums for a vehicle policy may lower if few claims arise or a No Claim Discount has increased for the previous policy year.
Besides, this group pays a higher excess than others for a claim. If you or your family member belongs to the group, you may have to pay higher premiums.
Tips on Choosing the Best Car Insurance Policy
You may know it is a legal duty to buy an insurance policy for your car. But the various policy types in the market may puzzle you. The following tips will help you make a wise and easy decision when buying car insurance.
1. Compare car insurance policies
The car insurance in Singapore is diverse. Insurance companies offer products with various benefits to clients. Besides the car insurance premiums, you should decide whether a comprehensive car insurance plan or basic coverage meets your needs. The coverage prices vary a lot. You can refer to the above information for more references if you choose a comprehensive policy.
2. Appropriate coverage for your needs
You should ponder appropriate coverage for your car. If your car is brand new, you have better reasons to have full coverage covering the huge loss occurring in earlier days. But if you own a car of more than 10 years and for commute purposes only, you may not need much coverage unless it is an antique car. Therefore choosing an appropriate coverage is essential before deciding on the best policy.
3. Premium discounts
Insurance companies use gifts and free services to appeal to car owners. Clients should ask for policy premium discounts an insurance company can offer without promotion. You may get a surprise if you try.
Besides a car insurance premium factor, you should consider the coverage types, choice of workshops, excesses, and emergency services you may badly need at that time when deliberating the best policy. You should compare and buy optimal insurance covers you need for every penny you pay.
- Car insurance plans are competitive and diverse in Singapore.
- You should create your criteria before comparing the insurance products.
- The critical factors for consideration include coverage types, choice of workshops, excesses, support services, e.g., courtesy car services, allowances, emergency roadside services, and premiums.
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