Car insurance may be compulsory for all drivers in Singapore, but it doesn’t mean that you should just settle for the first car insurance plan you come across. In this guide to car insurance, find out about the various types of car insurance available – third party only, third party, fire and theft car insurance, or comprehensive car insurance – and how to find the best car insurance. 

What are the three types of car insurance in Singapore?  

There are primarily three types of car insurance plans – Third Party Only (TPO), Third Party, Fire and Theft (TPFT), and Comprehensive plans – with each offering varying levels of coverage.  

1. Third Party Only (TPO) Car Insurance

If you are looking for a no-frills car insurance in Singapore, chances are, it’s a TPO plan. Unsurprisingly, the coverage it offers is also the most basic. 

TPO plans only protect you against third party liability, in other words, the damage you cause to other people and their vehicles during an accident. Your own damages will not be covered, which isn’t very ideal when you think about how much you’ve paid for your brand new car. 

2. Third Party, Fire and Theft (TPFT) Car Insurance

As its name suggests, TPFT types of car insurance covers you for third party liability as well as losses or damages to your vehicle caused by fire or theft. This is an upgrade from TPO plans, but some may still find the coverage limited as it does not cover damages to your car that are caused by accidents.

3. Comprehensive Car Insurance

Offering the most coverage, Comprehensive car insurance plans are the only option if you are looking to protect yourself and your car in an accident. This may be the costliest option among the three types of car insurance, but the coverage it provides is equally expansive, often including additional benefits such as personal accident insurance and the freedom to visit your own preferred workshops.

Should I get TPO, TPFT or Comprehensive car insurance?  

Whether you should get a TPO or Comprehensive car insurance plan really depends on how much coverage you need.  

Premiums for TPO plans are cheaper, but may cost you more in the long run if you end up getting into an accident or damaging your car as you’ll have to pay for repairs out-of-pocket. For this reason, you should only get a TPO plan if you are driving an old, second-hand car that you are willing to take a risk on. 

TPFT plans offer an extra layer of coverage compared to TPO plans, as they also cover fire and theft. It’s a good in-between option if you are looking for more coverage than a TPO plan but want something more affordable than a Comprehensive plan. 

Meanwhile, Comprehensive plans may cost more in premiums but it’ll pay itself off with the savings you’ll receive when damages to your car are all covered by your car insurance. Repairs can be expensive if you are driving a new car or a luxury car, but the extra coverage can help with that. 

It’s also worth considering a Comprehensive plan if you are a frequent driver who is constantly on the road. If you have taken out a car loan, you may not have much choice as most banks require you to purchase a Comprehensive plan. 

Car insurance premiums: How are they calculated and are they the only thing to look out for?   

How much your car insurance premiums are depends on a variety of factors. Insurers typically use the following factors to determine your car insurance premiums.

• Driving experience: the more experience you have, the cheaper premiums will be.

• Marital status, gender and age: When you are married, female, or an older driver of reasonable age, you’re generally seen as safer drivers and may potentially enjoy lower premiums

• Claims history: Those with a higher No Claims Discount (NCD) and less history of making claims tend to enjoy cheaper premiums. 

• Age and model of car: Generally, the older your car is, the cheaper premiums will be, unless it is more than 10 years old. Meanwhile, expensive and luxury cars usually involve higher premiums.

• Car usage: The less you use your car, the cheaper the premiums will be. Similarly, those with an office job will enjoy lower premiums compared to those who are constantly on the road for work. 

While you can’t possibly change your age, gender or job just to get cheaper car insurance, you can focus on factors that are within your control – such as driving safely to retain your NCD or adjusting policy benefits such as car insurance excess or reducing the number of named drivers to lower your premiums.

Still, cheapest may not always be the best if doing so means giving up the coverage you need. Rather than focusing solely on price, it’s far better to focus on value. In other words, which is the car insurance plan that gives you all the coverage you need at the best price?  

An example of a value-for-money option is Singtel Car Protect, which is not only affordable but comes with a suite of additional benefits.

To get extra value out of your car insurance policy, some of the benefits to look out for include:

• Personal accident coverage: The injuries you get from a car accident can sometimes be major and long-lasting. A car insurance plan that offers personal accident coverage can give you extra peace of mind. For example, Singtel Car Protect’s Essential and Premium plans offer personal accident benefits of up to $120,000 for the driver and up to $50,000 for each passenger, for all-round protection. 

• Emergency assistance: When you encounter car troubles, the last thing you want is to get stranded on the road. Drive with ease by choosing a car insurer that offers immediate help when you need it most. For instance, Singtel Car Protect offers a 24-hour towing hotline if emergency assistance is required during an accident. 

• Repairs at your preferred workshop: Some car owners want the flexibility of visiting their own preferred car workshops, and Singtel Car Protect lets you do just that. With the Premium plan, you’re free to get repairs done at your preferred workshop. If you don’t have a preference, you can enjoy a waiver of up to S$500 of the repair excess on your first claim when you visit an authorised workshop! 

• NCD protector: After driving for a specific number of years without an accident, you may be entitled to an NCD, which gives you up to 50% discount on your premiums. However, your NCD will be reduced the moment you get into an accident that is deemed your fault. But with an NCD protector, you can retain your NCD. It usually gives you a free pass for your first ‘at-fault’ accident in the policy year, before usual penalties apply for subsequent incidents. With Singtel Car Protect, an NCD protector costs only 10% of the premium. It’s well worth the money when you consider the amount of premiums you can potentially save.

Get the best car insurance for your needs today  

Ultimately, the best car insurance is one that is tailored to your needs. If you are looking for an affordable plan that provides comprehensive coverage, Singtel Car Protect could be the best car insurance for you. 

Drive worry-free today with Singtel Car Protect and receive guaranteed petrol vouchers when you purchase any plan. Get your car insurance quote online now.