Choosing the best car insurance in Singapore is essential, especially since the number of fatal traffic accidents has increased in recent times. Data from the police shows there was a rise in road fatalities in the first half of 2023 when compared to the previous year. As you search for an insurance provider, keep in mind the importance of adequate coverage in light of these statistics.
As Singapore moves towards an endemic new normal, the General Insurance Association (GIA) expects motor claims to increase in the coming year. “GIA urges motorists to continue to stay vigilant and practice good road safety habits,” the association said in an interview with The Straits Times.
To protect yourself and your assets, choosing a comprehensive car insurance plan is crucial. By researching and comparing different car insurance options in Singapore, you can find a plan that offers the best balance of price, coverage, and customer service. This allows you to have peace of mind on the road, knowing your vehicle is protected in case of an accident.
What Is Car Insurance and How Does It Cover?
Car insurance is a contract between you and an insurance company that protects you against financial loss in the event of an accident or theft. In exchange for your premium payment, the insurer agrees to pay your losses as defined in your policy.
There are different types of car insurance coverage available to meet your specific needs. Some common coverages include:
- Liability coverage provides protection for damages you may cause to others
- Collision coverage covers damages to your car
- Comprehensive coverage provides broader protection, covering you from events like theft, vandalism, and natural disasters.
In Singapore, car insurance policies may also include personal accident benefits and medical expenses coverage for you and your passengers. This allows you to get additional peace of mind while driving.
When selecting a policy, factors such as your car’s:
- Make and model
- Your age
- Your past claims and driving history
- Any applicable deductibles might also play a role in determining your premium.
A deductible is the amount you agree to pay out-of-pocket before your insurance kicks in to cover the remaining cost of a claim.
Types of Insurance Coverage
In Singapore, there are various types of car insurance coverage available to cater to your needs. Knowing the difference between them can help you make well-informed decisions when purchasing a policy.
- Third-Party Only (TPO) Insurance: This is the most basic form of car insurance and it covers your liability for damages and injuries caused to other parties involved in an accident. However, it does not cover any damages to your own vehicle or personal injuries.
- Third-Party, Fire, and Theft (TPFT) Insurance: It expands upon TPO coverage by also offering protection for your car in the event of theft or fire damage. This is a popular choice for those who want added security without opting for a comprehensive plan.
- Comprehensive Coverage: This is the most extensive type of car insurance available. It includes all of the benefits of TPO and TPFT, along with coverage for damages to your vehicle caused by accidents, vandalism, and natural disasters.
Additionally, it offers personal accident coverage for you, the driver. If you’re looking for peace of mind, this type of insurance can be worth considering.
Best Car Insurance Plans in Singapore
| Car Insurance Plan | Best For | Plans | Car Insurance Premium |
|---|---|---|---|
| FWD Car Insurance | Customisable Plans | Classic PlanExecutive PlanPrestige Plan | Starts from S$622.91/year |
| Singtel Car Protect | Digitally-Oriented Insurance Solutions | Value PlanEssential PlanPremium Plan | Starts from 765.17/year |
| Allianz Motor Protect | Comprehensive Car Insurance Plans | Third-Party Only Third-Party Fire and Theft OnlyComprehensive | Starts from S$641.49 |
| MSIG Private Motor Insurance | Car Loan Insurance | MSIG MotorMaxMSIG MotorMax Plus | Starts from S$825.24 |
| AIG Car Insurance | Protection Against Collision | Complete PlanCollision-Only Plan | Starts from S$1,056.07 |
*Note: Annual premium prices are based on this driver profile: a married, 35-year-old male driving with a Mazda 3 1.6 (A) registered in 2018 and has been driving for more than 3 years and made no claims.
1. FWD Car Insurance – Best For Customisable Plans
FWD Car Insurance emerges distinctively with a slew of remarkable features, aimed at both convenience and comprehensive coverage. Leveraging a fully digital platform, it simplifies your insurance purchase journey, allowing for online quotes and hassle-free buying within minutes, while ensuring optimal value for money with potential premium discounts of up to 25%.
Furthermore, it stands out with its lifetime 50% No Claim Discount on certain plans, and offers adaptable driver coverage, affording ease in sharing your vehicle with confidence, albeit with varying stipulations across different plan types.
Plans:
- FWD Car Classic Insurance Plan
- FWD Car Executive Plan
- FWD Car Prestige
Annual Premium:
- Classic: Starts from S$622.91/year
- Executive: S$733.15/year
- Prestige: S$769.45/year
Promo: Use promo code FWDDAY23 to get 20% off and S$100 e-CapitaVouchers (applicable for new purchases with a minimum annual premium of S$1000) for Comprehensive Plan only.
2. Singtel Car Protect – Best For Digitally-Oriented Insurance Solutions
Singtel Car Protect is a comprehensive car insurance policy offered by Singtel. It is designed to offer you maximum coverage, including high personal accident coverage and the liberty to get repairs done at your preferred workshop. This plan is appreciated for its simplicity and affordability while providing you adequate protection on the roads of Singapore.
Plans:
- Premium: Offers essentially the same coverage as the Essential Plan but with additional repair coverage at any workshop of your choice.
- Essential: This is a comprehensive car insurance plan that covers liabilities towards a third party, your vehicle, yourself, and unnamed drivers who are authorised to drive your car.
- Value: Only covers the liability towards a third party and your vehicle
Annual Premium: S$998.05 (Premium), S$831.70 (Essential), S$765.17 (Value). Contact Singtel Car Protect to get a quote.
Promo:
- Get S$300 petrol vouchers when you sign up. Until 31 October 2023 only!
- Enjoy up to S$80 off a set of 4 new tyres/rims at Hock Seng Wah Tyres Trading
- Refer a friend and you get a S$50 petrol voucher when they purchase Singtel Car Protect
- Enjoy 10% off premiums via My Singtel app
3. Allianz Motor Protect Car Insurance – Best For Comprehensive Insurance Plans
Allianz Motor Protect offers comprehensive coverage for your car insurance needs. With a focus on providing reliable protection and peace of mind, this plan is suitable for a wide range of drivers. One of the key features of Allianz Motor Protect is the complimentary 24/7 roadside assistance provided to policyholders. This means you can always count on Allianz’s support in case of any road emergencies.
The plan also includes a lifetime warranty on repairs at authorized workshops, giving you peace of mind knowing that any workmanship defects will be rectified at no extra cost to you. This car insurance plan is considered one of the cheapest in Singapore, offering coverage for scenarios that a typical driver might face while maintaining a budget-friendly premium.
Plans:
- Basic Third-Party Coverage: Ensures protection against damages to third-party property, as well as death or injury, and includes legal representation and defense.
- Third-Party, Fire, and Theft Coverage: Incorporates the same features as the Basic Third-Party plan, while also offering additional protection against loss or damage to your vehicle caused by fire and theft.
- Complete Comprehensive Coverage: Provides the benefits found in the first two plans and adds extra advantages like tax reimbursement, towing expenses, approved repairs, a “new for old” replacement vehicle, a courtesy car, and additional perks.
Annual Premium: Starts from S$641.49 (Third-Party Only); S$692.31 (Third-Party, Fire & Theft Only); S$865.05 (Comprehensive)
Promo: Use promo code MOTOR10% to enjoy 10% off your premium on Allianz Motor Protect TODAY! The promo ends on 29 September 2023.
4. MSIG Private Motor Car Insurance – Best For Car Loan Insurance
MSIG’s Private Motor Car Insurance, also known as MotorMax, is a top-notch car insurance plan in Singapore that offers both affordability and comprehensive coverage for your vehicle. This plan is especially beneficial for drivers who prefer a car insurance policy without sacrificing protection and benefits.
Among the key features of this car insurance plan is the S$100,000 worth of car loan benefits to cover any outstanding car loan if you, as the policyholder, die in a car accident. This valuable benefit brings peace of mind to you and your family when the unexpected happens.
Plans:
- MotorMax Plan
- MotorMax Plus Plan
These insurance plans provide the same comprehensive coverage, liability to third-party coverage, personal accident benefits, and medical expenses, but to different claim limits.
Annual Premium: Starts from S$825.24
Promo: Enjoy up to S$150 Petrol Vouchers. The promo ends on 31 October 2023
5. AIG Car Insurance – Best For Protection Against Collision
AIG is a well-known insurance provider that offers comprehensive car insurance policies in Singapore. Their plans are designed to provide you with the protection you need on the road while maintaining a level of flexibility that suits your individual driving habits and lifestyle.
Their Collision-Only plan is especially noteworthy, offering robust coverage for incidents involving collisions, damages from hit-and-run events, and fire protection. For those seeking an all-encompassing safety net, AIG extends its Car Insurance Complete plan, which safeguards against an array of situations including theft, floods, windscreen/window damages, and riots.
Plans:
- AIG Complete Car Insurance Plan: Provides a broad spectrum of coverage, safeguarding against damages or losses from accidents, third-party bodily injuries, third-party property damage, and beyond.
- AIG Collision-Only Car Insurance Plan: Specializes in offering coverage for damages or losses to your vehicle due to collisions with other vehicles, while also encompassing third-party liability for both bodily injury and property damage.
Annual Premium: Starts from S$1,056.07 for Collision-Only; S$1,293.53 for Complete PlanPromo: Get up to S$350 worth of Petrol Vouchers when you purchase a policy today. Promo until 31 October 2023.
Promo: Get up to S$350 worth of Petrol Vouchers when you purchase a policy today. Promo until 31 October 2023.
Tips to Get the Cheapest Car Insurance
When shopping for car insurance, it’s essential to find a plan with comprehensive coverage at an affordable price. To help you secure the best policy, follow these practical tips.
- Compare different car insurance rates online. This method allows you to see the various options available and select the most cost-effective coverage for your needs. You can use online platforms to obtain quotes and make informed choices.
- Maintain a clean driving record. Car insurance providers are more likely to offer lower premiums to drivers with no history of accidents or traffic violations. It’s essential to obey all traffic rules and practice safe driving habits as it directly impacts your insurance costs.
- Have an existing No Claim Discount (NCD). This can also make a significant difference, as it reduces your premium based on the number of years without any claims. The higher your NCD percentage, the lower your premium. Make sure to always look for insurers that offer NCD protection, especially if you have maintained a high NCD for consecutive years.
- Consider tweaking your policy’s excess. This is the amount paid out of your pocket before the insurance covers the remaining costs. Raising your excess may result in lower premiums; however, you need to ensure that it remains affordable in case of an accident.
- Review your car insurance policy annually. Seek out better deals when it’s time for renewal. The car insurance market is competitive, and plans often change. A periodic review of the best car insurance plans in Singapore will ensure you continue to get the cheapest and most suitable coverage for your needs.
FAQs
1. How Much is Car Insurance in Singapore?
The average cost of car insurance plans can range between S$700 and S$1,000 per year. However, the exact annual premium will greatly vary from one car insurance provider to another.
Car insurance premiums in Singapore can vary widely due to numerous factors including the driver’s age, driving experience, claim history (No Claim Discount), the vehicle’s make and model, and the type and extent of the coverage selected.
2. How Does The No Claim Discount (NCD) System Work With Top Car Insurance Companies In Singapore, And How Can It Affect My Premiums?
According to the General Insurance Association, a No Claims Discount (NCD) is an entitlement given to individuals if no claims have been made under their policy for a year or more with the current insurance provider. This greatly reduces the premium you will pay for the following year.
Check out the table below to determine how NCD is set by all insurers in the industry:
| Private Car Policies | Period of insurance with no claim | Discount on renewal |
|---|---|---|
| 1 year | 10% | |
| 2 years | 20% | |
| 3 years | 30% | |
| 4 years | 40% | |
| 5 years or longer | 50% | |
| Commercial Vehicle & Motorcycle Policies | 1 year | 10% |
| 2 years | 15% | |
| 3 years or longer | 20% |
(Source: GIA)
3. Is Car Insurance Mandatory in Singapore?
Yes, car insurance is mandatory in Singapore. All vehicle owners are legally required to have at least a basic level of car insurance before their vehicles can be allowed on the road.
The minimum requirement is to have a Third-Party Liability insurance policy, which covers the driver’s liability for damage caused to other people’s property, as well as bodily injury or death to other people, resulting from a vehicle accident.
Note that the penalty for not having valid insurance coverage includes a fine of up to S$1,000 or imprisonment of up to 3 months or both. On top of that, you will be disqualified from holding a driving license for at least 12 months.
4. What To Do In Singapore When You Have A Car Accident?
The claims process for car insurance providers in Singapore generally follows a standardized procedure, although the specifics might slightly vary from one company to another. Here’s a general idea of how the claims process might unfold with top car insurance providers in the region:
Immediate Post-Accident Actions:
- Ensure Safety: First, ensure that all parties are safe. Move to a safe location if needed and seek medical assistance if there are any injuries.
- Document the Incident: Gather as much information as possible at the scene. This includes taking photographs, collecting witness accounts, and exchanging details with the other party involved.
- Report to Police: In cases involving injuries, government property, foreign vehicles, or hit-and-run, it is mandatory to report to the police.
- Tow Services: If the vehicle is not drivable, utilize the insurer’s authorized tow service to prevent further damage.
Start the Claim Process:
- Inform the Insurer: Notify your insurance provider about the incident as soon as possible, adhering to the time frame stipulated in your policy (often within 24 hours or the next working day).
- Submission of Claim: Submit the claim form alongside requisite documents such as your driver’s license, police report (if applicable), photographs, etc. This might often be facilitated through online platforms or via email for many providers in Singapore.
- Claims Assessment: The insurance company will assess the claim, which might involve inspections of the vehicle, scrutinizing documents, and possibly, discussions with involved parties.
- Claim Approval/Denial: Depending on the assessment, the claim may either be approved or denied. In the case of approval, repairs will be undertaken (you might need to send your car to an authorized workshop), and relevant payouts will be processed.
- Excess Payment: Depending on your policy, you may need to pay an excess (a predetermined amount you have to bear in a claim) either upfront or by having it deducted from your claims amount.
Post-Claim Follow-Up:
- Repairs: Once the claim is approved, repairs will be facilitated through workshops authorized by the insurer.
- Settlement: Final settlements will be handled by the insurance company, which could be a direct payment to the workshops or reimbursement to policyholders in cases of out-of-pocket expenses.
- Policy Adjustment: Post-claim, there may be adjustments to your policy or premiums, particularly if you were at fault for the incident.
Conclusion
In your search for the best car insurance plan in Singapore, it’s crucial to evaluate various options and consider factors such as coverage, premiums, and customer experience. Some of the best car insurance plans you can explore are offered by companies such as MSIG MotorMax, FWD Car Insurance, and AIG Car Insurance.
Key Takeaways:
- Carefully assess the pros and cons of each car insurance policy to find the one that suits your specific needs and budget.
- Ensure the insurance plan offers comprehensive protection, including accident damage, third-party liability, and other critical features.
- Investigate each insurer’s track record for claim settlements and their customer service responsiveness to make sure you select the best provider for your situation.
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