car insurance08






There are three main types of car insurance:
- Third Party
- Third Party, Fire and Theft
- Comprehensive


All cars in Singapore are required by law to be at least covered for Third Party Only Insurance. Third Party Insurance covers only your liability in respect of any property damage, bodily injury or death resulting from your motor accident. In simple terms – this means that the insurance will cover the damage sustained by the other driver(s) and other property like street lighting, fences etc. and not yourself. Any damage to your vehicle will need to be covered at your own expense.


Third Party, Fire and Theft Insurance additionally protects your vehicle against fire, and theft. For some insurers, you are able to attach optional benefits. Third Party, Fire and Theft Insurance can be considered if you are driving an older car that you may not want to cover with a Comprehensive plan.


A Comprehensive Car Insurance plan provides the most extensive cover. In addition to Third Party Liability, Fire and Theft, Comprehensive Insurance also provides cover on your own car's damage as well as medical costs arising from the accident.





We would recommend that you purchase Comprehensive Insurance as this provides the most complete cover and will protect you from huge repair bill and medical costs. 






Car Insurance premium is paid at the start of the policy period for a coverage period of one year. Before the end of the policy year, you would receive a renewal notice from the insurer. In Singapore, it is an LTA requirement that you have a valid Car Insurance cover over the entire duration of your road tax.


The key benefits of a Comprehensive Car Insurance plan will include third party liability coverage, fire, theft and vandalism and also protection for damages to your own car (including windscreen). You are also covered for medical expenses, up to a limit, that you may incur due to injury sustained in an accident.


There are additional benefits you may opt for. For example, this could include Courtesy Car Benefits (also called Replacement Car Benefits) which would cover any additional car rental charges in the event that your car becomes unavailable for use due to an accident.


Additional optional benefits available may include:

• Excess Waiver
• Waiver of Young Driver Excess
• No Claim Discount Protector
• Medical or Dental Expenses
• Personal Accident for Passengers
• Additional Cover for Overseas Driving


Other benefits that some insurers may provide include free towing service, 24-hour phone assistance and roadside support.






No Claims Discount ("NCD")


This is a discount given by insurance companies to reward careful drivers who have not made any claims previously.


The NCD applicable to your policy can range from as low as 0% (in the first policy year, and in the year after a claim is made) to as high as 50% if you have not claimed for 5 consecutive years or more.


Yes, that means you can expect to enjoy up to 50% discount on your car insurance if you have a proven track record of careful and safe driving!


NCD is transferrable across cars and across insurance companies. In other words, it is you who own the NCD status, not your vehicle. That’s why you can also transfer your NCD to another vehicle you own. However, it cannot be applied to two vehicles at the same time. On the contrary, if you do not have a car registered under your name for 12 months more, your NCD will “reset” back to 0% and you'll have to start all over again.


NCD Protector


A NCD Protector is an add-on optional benefit under your car insurance policy. What the NCD protector benefit does is to allow you to make a claim under your policy without losing your NCD status. This preserves your 50% NCD status despite a claim, but could cost an extra 10% more in premiums.


Most insurers only offer the NCD Protector as an add-on benefit to private car drivers who are already enjoying an NCD of 50%.


Certificate of Merit (COM)


Certificate of Merit (COM) is a recognition from the Singapore Police Force that you have maintained a demerit-point-free driving record for 3 consecutive years.


For drivers with an NCD of 30% and above, some insurers may reward you with an additional “Offence Free” discount of 5% on top of your NCD upon confirmation of your Certificate of Merit.






Approved Panel / Authorised Workshops


Typically, there are two options: 1. Approved Panel/Authorised Workshops; or, 2. Any Workshop.


For the Approved Panel/Authorised Workshops option, the premiums are cheaper than compared to the Any Workshop option, but in the event of an accident, you have to go to the insurer's own Approved Panel/Authorised Workshops for any repairs.


This is because by working with a fixed panel of workshops, insurers can better understand the condition of your car and also control their claims by preventing over-inflation of the repair costs. Some of these authorized workshops can also provide a warranty period on the repairs carried out by the workshops to provide some assurance on the standard of repair work carried out. Do note that in the event of an accident and you do not use an authorized workshop, you will not be able to claim for the costs of repairs. 


In the case of the Any Workshop option, you are able to send your car to any workshop of your choice in the event of an accident. 



My Car is Under Warranty


In the event that you are required to repair your car at a specific dealer or appointed agent of the manufacturer in order to preserve the validity of the warranty on your car, you may wish to purchase the “any workshop” option so that you can go to the repairer or dealership of your choice.


Loss of Use Benefit


Loss of Use Benefit covers your transportation costs or the costs of renting a replacement vehicle over the period that your vehicle is being repaired or replaced after being damaged.


If your car is written off or stolen, a courtesy car will usually be provided by insurers for a few months before you get a new one. For a car that is new and damaged beyond repair, some insurers will even pay for a brand new car of the same make and model. The definition of ‘new’ can be a car less than 12 to 36 months old from the registration date, depending on insurer’s interpretation and policy terms.






By registering your car as off-peak, in addition to the $500 discount on the annual road tax and the rebate of up to $17,000 from the government, you can also save money on your car insurance premiums.


Off-peak cars enjoy higher discounts on their car insurance premiums as their vehicles are off the roads when traffic is at its most congested, hence lowering the risk of an accident. Some insurers even tailor-make low-mileage car insurance policy for off-peak drivers who clock fewer than 8,000km per year.





Do disclose information of other regular drivers to your insurer so that the insurer can accurately assess the risk and determine the appropriate premium and excess for you.


In the event of an accident, named drivers are able to enjoy the same level of benefits as the owner of the vehicle, hence it is common to include the names of your spouse or other family members under your car insurance policy.


Do note that additional discounts might also be given by certain insurers if cover is limited to drivers 30 years of age and older only. Many insurers perceive drivers under 30 or above 70 with a higher degree of risk, for which they have to pay more for car insurance. However, different insurers have different definitions on young and senior drivers, hence it is always best to compare before you purchase.


For young and inexperienced drivers, one good way of lowering your premiums would be to purchase your car insurance as joint drivers with your parents. This is because the insurers take into account the experience and age of your parents and this will help to reduce the overall risk profile.


For enquiries or quotes on Comprehensive Private Car Insurance, contact us at: ico-email[email protected]


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