It’s not just nice to have — car insurance in Singapore is a legal requirement. Whether you’re driving a brand-new car or your family’s trusty Toyota Vios, having the right insurance policy is crucial to protect you against accidents, theft, and other unforeseen events.

But with 3 different types of car insurance available in Singapore, how do you pick what’s right for you? Let’s break it down. 👇

The Third Party Only (TPO) car insurance is the most basic and affordable type of car insurance in Singapore. As the name suggests, it only covers damage caused to other people or their property in the event of an accident. However, it doesn’t cover any damage to your vehicle. This means if your car is damaged or you’re injured, you’ll have to bear the repair or medical costs yourself.

While this type of car insurance might seem like a barebones option, it’s a practical choice for older cars nearing the end of their Certificate of Entitlement. If Grandpa’s old Honda Civic is on its last legs and you’re just a step away from replacing it, the TPO car insurance might help you save money in the long run while keeping your wheels street-legal.

In addition to covering third-party damage, the Third Party, Fire, and Theft (TPFT) car insurance protects you if your car is damaged by fire or stolen. This type of car insurance makes it a better option for drivers who want an extra layer of security without paying for comprehensive coverage.

Like TPO, TPFT is suitable for owners of older cars, as fires and thefts are some of the most financially damaging accidents. However, it’s important to note that TPFT still doesn’t cover damage to your vehicle in a non-fire-related accident, so if you need better coverage, check out our next recommendation.

A comprehensive policy is the most extensive type of car insurance you can get. Comprehensive car insurance covers third-party damage, repairs to your vehicle, and, in some cases, even spare part replacements caused by accidents or other incidents. 

Regardless of whether your car is new or on the higher end of the price scale, a comprehensive insurance policy is the wisest option.

While comprehensive policies are the most expensive, they also alleviate worries about unexpected repair costs or financial setbacks in the event of an accident. So, we recommend not skimping on it.

Choosing the right type of car insurance is important, and no two policies are the same. In addition to the type of coverage you’re getting, there are other factors you’ll have to consider when buying your car insurance.

If your insurance premiums look too pricey, a No Claims Discount (NCD) guarantee is a good way to save money in the long run. Think of an NCD as a reward for safe driving. If you get through one policy period without making any claims, you’ll earn a discount on your next premium. Some NCD guarantees reduce your premiums by as low as 50% after several years of no claims, making them a great way to save money over time.

However, making even a single claim can cause you to lose this discount. That’s where an NCD guarantee or protector comes in. Some insurers offer this feature, which ensures your NCD remains intact even if you file a claim. While this might come at a slightly higher cost, it can be a worthwhile investment, especially if you’re a cautious driver who rarely makes claims. It’s a smart way to safeguard your hard-earned discount and keep your premiums low in the long run.

Breakdowns and accidents can happen anytime, so round-the-clock towing assistance is a valuable feature to look for in a car insurance policy. No matter how cool you think you are in emergencies, cold-calling tow truck services at 1am can make anyone panic.

When comparing car insurance policies in Singapore, always check if 24/7 towing assistance is included or available as an add-on — it’s a small detail that can save tons of stress in an emergency.

The cost of car insurance in Singapore isn’t a one-size-fits-all figure. Your premium is based on several factors, which means your plan could be very different from someone else’s, even if you drive the same car. Here’s a closer look at what insurers consider when determining your premium:

• Your age: Statistically speaking, younger drivers are more likely to get involved in accidents. As such, the younger you are, the higher your premiums can get.

• Your gender: Sorry, lads! Men (statistically) get into more accidents than women, so be prepared to fork out a little extra if you’re not of the fairer sex.

• Your occupation: When applying for insurance, you’ll often be asked about some of your personal details, including your occupation. Certain professions, such as those in high-stress or high-risk industries or requiring frequent driving to meet clients, may be associated with a higher likelihood of accidents and incur higher premiums.

• Your driving history: Drivers with years of experience and a clean record are often rewarded with lower rates, as they’re deemed less likely to file claims. On the flip side, a history of accidents or traffic violations can lead to higher costs. Taken alongside NCDs, your best way of lowering premiums over time is to practice safe and defensive driving.

• Your claim history: Insurers view drivers with a history of claims as having a higher risk, which translates to higher costs. If you’ve had a claim-free record, make sure to highlight this to your agent, as they might be able to cut you a better deal.

• Your car: Luxury cars, high-performance vehicles, and cars with expensive spare parts typically come with higher insurance costs to cover their repair fees. On the other hand, smaller, more economical cars are generally cheaper to insure. Before purchasing a vehicle, it’s worth considering how it might impact your insurance premiums.

(Featured photo: Zig)