News from DirectAsia.com : A Car Insurance Guide for new Singapore-based Expats

Car insurance and Singapore

As is the case in several countries around the world, it is compulsory for vehicle owners in Singapore to have car insurance. You will be required to produce proof that your car is insured when you renew your road tax.

Buying car insurance

There are several financial institutions and auto insurance providers in Singapore who offer a variety of plans tailored to suit different needs. Getting online car insurance is becoming increasingly popular owing to its simple, direct and instant nature.

Do some research on the internet, call up or visit auto insurance providers and compare policy terms to ensure that you are choosing a plan that matches your needs.

Types of available car insurance

There are three main types of motor insurance cover that you can choose from:

Third-party insurance – this is the minimum level of insurance protection that is required by law. It provides cover against legal liability to a third party in the event of an accident that result in injury and property damage.

Third-party fire and theft – in addition to the protection specified above, this type also covers your car in the event of loss or damage due to fire, theft, external explosion, lightning and self-ignition.

Comprehensive coverage – this is the most popular type of insurance owing to the relatively high price of cars in Singapore.

As the title suggests, it provides greater protection in the event of accidents, theft, damage, fire, legal liability to third parties, property damage, injuries sustained by others, natural disasters and more.

It is recommended that you obtain comprehensive motor insurance coverage to enjoy the best possible protection and peace of mind.

Motor insurance premiums

Given below is a simple table of factors that insurance providers in Singapore usually take into account when calculating the premium that you should pay.

Do note that the descriptions below are only general trends that insurance providers follow. They are not rules. Exceptions will be made depending on their judgment of an insurance application.

CATEGORY DESCRIPTION Driver Profile   Age Younger drivers pay higher premiums Gender Women pay lower premiums than men Marital Status Single motorists have to pay more than married ones Nature of job Those who work ‘indoors’ shell out less than ‘outdoor’ workers. Claims History Drivers with a history of high claims may have to pay much higher premiums, or could be rejected altogether. Car Characteristics Model TypeSports cars cost more to insure than regular sedansEngine CapacityBigger engines result in bigger insurance premiumsEngine TypeTurbocharged engines are more expensive to insureYear of ManufactureWhile older cars mean lower premiums, some providers do not cover cars that they feel are ‘too old’.Vehicle SchemeOff-Peak Cars* get a small premium discount.

In addition, auto insurance premiums are generally quite stable. However, large fluctuations may occur occasionally, especially if your insurance company has had an unsatisfactory year.

*Off Peak Cars refer to vehicles that are allowed on Singapore’s roads during certain fixed hours of the day. These fixed hours vary for weekdays, weekends and public holidays.

No Claim Discount (NCD)

If you have a No Claim discount in your home country, this will usually be considered when you apply for a car insurance policy in Singapore. Do remember to bring your NCD proof from home!

Now that you know the essential facts about motor insurance in Singapore, do read our handy guide on Choosing the Right Car Insurance Policy before you arrive.

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