Ultimate Guide to Car Insurance in Singapore (2023)

TPO offers the most basic insurance coverage and is the minimum required in Singapore. It covers only the affected third parties and/or liabilities.

TPFT provides extra coverage on top of the basic covered in TPO. With TPFT, any loss or damage to your vehicle due to fire and theft will be covered.

Comprehensive car insurance is an all-inclusive plan that covers you, your vehicle, your passengers and your liabilities in minor and grave accidents.

Adam is cruising along PIE on his way to work. A tree suddenly collapses in front of his path. Unavoidably he crashes into it, and the cost to fix the car is $2,000. Fortunately, his excess is $500 . So he just pays $500, and the insurer forks out the remaining.

1. Excess in 'Own Damage': This excess only applies to your vehicle. It’s not inclusive of the third party’s damages.

2. Excess in 'Third-Party': This excess applies to damages incurred by the third party. You may need to pay this on top of the excess in your ‘Own Damage’.

3. Excess in 'All Claims': This excess refers to the total sum payable to every accident, regardless of whose damages the excess covers.

This discount incentivises drivers to practice safe driving. You earn a 10% discount for each year you stay claim-free, up to a maximum of 50%.

Named drivers are recognised by insurers to drive the car. They’re covered by the main owner’s insurance policy and are entitled to the same privileges/protection .

1. Car make and model – European-branded cars have higher import taxes and pricer parts, raising the cost of premiums

2. Age of car – The cost of car insurance generally decreases with the age of your car

3. Age of insured – People below the age of 30 and over the age of 65 can expect to pay more expensive premiums

4. Occupation – An outdoor job indicates that you will use your car more often and pose a higher risk of accident. This can translate to higher premiums

5. Marital status – Insurers may lower your car premium if you have a family to look after

6. Years of driving – Drivers with less than four years of experience will have to pay higher car insurance premiums

7. Type of car usage – Private-hire insurance premiums tend to be higher than policies for private vehicles

8. Driving accident claim history – a ‘loading fee’ applies if you have made a single claim of above $10,000 OR made two or more claims in the past three years

9. No claims discount – If you’ve been claim-free for a certain number of years, you’ll be rewarded with a renewal discount. Find out more about NCD here.

10. Honesty and integrity – Dishonesty about your driving history may cost you a higher premium if false information is provided

11. Car modifications – Modifications that are not LTA-compliant will require additional cover which will increase the premium price

1. Failure to submit a proper claim in 24 hours – Generally, accidents should be reported within 24-hours and the claims should be submitted as-soon-as-possible. Otherwise, your claims could be voided. You may also need to send your vehicle for inspection by a certain timeline.


2. Not seeking advice from insurer – Your insurer is your go-to when an accident arises. They’ll redirect you to a hotline, if any, and advise you on which workshops to go to.


3. Admitting to fault or liability – Agreeing to negotiate or making offers of private settlement means admitting liability. The involved party can use this against you to shirk responsibility from the accident.


4. Not getting the full picture – The less details you note down, the less likely your claims will be approved quickly. Here’s what you need to note down in a car accident


5. Submitting badly documented evidence – Usually, the insurer uses car camera footage to piece the story together. If you don’t have a car camera footage to submit as evidence, you’ll need many photos of differing angles. Try to get a good mix of close up, medium-range, and wide-angle shots.


6. Moving the vehicle unnecessarily – This affects your evidence documentation, for you may miss out crucial details and it gives the other party a chance to dispute your claims. If necessary, look for a witness.


7. Visiting an unauthorised workshop – Usually, the insurer uses car camera footage to piece the story together. If you don’t have a car camera footage to submit as evidence, you’ll need many photos of differing angles. Try to get a good mix of close up, medium-range, and wide-angle shots.