Singapore's top car insurance providers in 2022

Singapore's top car insurance providers in 2022 | Insurance Business Asia

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.

How does car insurance work in Singapore?

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.

What do Singapore drivers need to consider when taking out car insurance?

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:

Excess: A higher excess means cheaper premiums, but drivers must make sure they set an amount that they can afford.
Named drivers: Policyholders are allowed to add drivers, including their spouse and children, to their policies, which has a corresponding impact on premiums. For those, who do not need to cover a younger driver, they can raise the age limit, for example to 30, 35, or 40 years, so they can lower their rates.
Choice of workshops: Car insurance companies have a list of authorised workshops to carry out repairs. Drivers can opt to work with these firms to slash premiums.
Loss of use: Motorists can access this benefit, which provides a mode of transport while their vehicles are under repair. This coverage is suitable for people whose livelihood depends on having their cars. Getting this benefit can likewise impact premium prices.
Overseas coverage: Suitable for those who frequently drive to Malaysia, this coverage is typically purchased as an add-on.
NCD protector: Drivers who have achieved high NCD can benefit from this optional coverage, which prevents a rare claim from tarnishing their NCD record.
Roadside assistance: Some auto policies provide complimentary round-the-clock assistance in the event of a car accident or breakdown, while others offer this benefit as an add-on.

How much does car insurance cost in Singapore?

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	Younger drivers and those who have reached senior age tend to have more expensive car insurance Motorists aged 30 to 65 usually get cheaper premiums
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	Basic car models are charged with cheaper premiums Luxury vehicles and certain SUVs come with higher rates as their parts are more costly to replace
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

What do the top car insurance policies in Singapore cover?

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	Low premiums for collision-related accidents Up to S$5,000 third-party property damage coverage Unlimited coverage for third-party death or injury Premium discounts for policies limiting named drivers to those aged above 30, 35, or 40 years	S$825.24
Allianz	Value for money	Covers third-party property damage, injury, or death for all plans Covers legal representation and defense for all plans Lifetime warranty on repairs Complimentary courtesy car when policyholder’s vehicle is being repaired Replacement car if vehicle is less than two years old and damaged beyond repair 24/7 complimentary roadside assistance Flexible excess	S$854.17
Etiqa	Young and demerit-free drivers	Quick processing of application and claims (claims can be paid out in 30 minutes) S$50 per day allowance if car is being repaired Adjustable excess for better pricing Low age limit (24) for young and inexperienced drivers 5% additional discount for demerit-free drivers in the past three years Free child seat coverage of up to S$300 Affordable premiums thanks to ongoing promos	S$1,161.34
FWD	Getting 50% NCD for life and overseas coverage	Policies can be purchased online Lifetime 50% NCD guarantee Insures anyone driving the vehicle (not applicable for Classic Plan unless drivers are added) Courtesy car provided up to three months if vehicle is written off or permanently lost Up to S$80 daily transport allowance for up to 10 days while policyholder’s car is being repaired	S$918.68
HLAS - Car Protect360	Drivers with preferred workshops	Flexibility to choose between preferred car workshop or HLAS’ authorised workshops, with reduced excess and premiums 24/7 hours roadside assistance 25% discount plus a choice of free car servicing, air-con treatment, or paint protection	S$1,336.15
MSIG	Affordable premiums	More than 30 authorised workshops Car loan protection of S$100,000 in the event of death (MotorMax Plus policy only) 24-hour roadside assistance for towing, lockout, or minor roadside repairs Replacement car if policyholder’s vehicle becomes irreparable after an accident	S$825.24
NTUC Income - Drivo	Emergency assistance team and free NCD protector	Roadside assistance, with Orange Force riders arriving at accident scenes to provide help anytime and anywhere 24/7 referral services for road and medical assistance in West Malaysia S$50 per day transport allowance from the first day of repair, up to a maximum of seven days More than 30 authorised workshops Free NCD protector granted automatically upon renewal if policyholder has 50% NCD in the last two years	S$1,004.13
Singlife with Aviva	Promotional rates and young drivers	Low age limit (24) for young and inexperienced drivers More than 30 authorised workshops NCD remains intact with no upfront excess payment required if car is damaged not at the fault of the driver 10% NCD penalty upon claims (Standard and Prestige) Promotional rates for NSmen and civil servants eCall assistance service that automatically alerts the emergency team to provide professional help (Prestige only) No additional excess for young and inexperienced drivers (Prestige only)	S$1,057.54
Singtel - Car Protect	Affordable comprehensive coverage	Simple application process Competitively priced Accident towing charges by default Authorised drivers and passengers are insured for up to S$50,000 Underwritten by Great Eastern Life	S$831.70